Dow Jones flips on weak ADP jobs data. Stock Plunges 12% After Short Letter

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The Dow Jones Industrial Average reversed higher on Wednesday after the ADP jobs report fell short of expectations.On the other hand, artificial intelligence stocks (AI) plunged another 12% after Tuesday’s short letter. Also, FedEx and Johnson & Johnson increased their prices early.

X crashed 26% on Tuesday after Kerrisdale Capital said it had sent a letter to software maker Deloitte, the auditor, about “significant accounting and disclosure issues.” Kerrisdale Capital announced a short position in AI stock last week.

In terms of earnings, Conagra (CAG), schnitzer steel (SCHN) and simply good food (SMPL) was working on Wednesday.

Conagra shares rose 1% in morning trading, while Schnitzer Steel fell 6%. Simply Good Foods dropped nearly 6% of his.

stock market today

fedex (FDX) rose 2.3% after raising its dividend by 10% and restructuring various divisions. FDX stock is exiting the buy zone.

Johnson & Johnson (JNJ) rose more than 3% after offering to pay about $9 billion to settle claims that its talcum powder causes cancer.

electric car giant Tesla (TSLA) fell 2.8% on Wednesday morning.Dow Jones Tech Giant apple (AAPL) and microsoft (MSFT) fell after the stock market opened today.

IBD Leaderboard Strains axon enterprise (Axon), Service Now (now) and Southern Copper (SCCO) — similar to Dow Jones stocks boeing (BA), Cisco Systems (CSCO) and Nike (NKE) — Continued market strength and one of the top stocks to buy and watch.

Boeing was featured in this week’s “Stocks Close to the Buy Zone” column. Axon, Skyline, and Microsoft were all recent targets for his IBD Stock Of The Day.

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Dow Jones Today: Oil Prices, US Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.15% while the S&P 500 fell 0.3%. The tech-heavy Nasdaq Composite fell 0.9% in the morning.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.8%, while the SPDR S&P 500 ETF (SPY) fell 0.3% early Wednesday morning.

The 10-year US Treasury yield fell to 3.3% on Wednesday. On Tuesday, 10-year yields closed at their lowest level since mid-September.

U.S. oil prices paused after an already strong rally this week, rising slightly in early morning trading. West Texas Intermediate futures traded just under $81 a barrel.

stock market rally

The Dow Jones Industrial Average and S&P 500 each dropped 0.6% on Tuesday, while the tech-heavy Nasdaq Composite Index dropped 0.5%.

Tuesday’s Big Picture column said, “Investors appear to have shied away from risky assets in favor of hiding in the Treasury. 10-year yields fell 9 basis points to 3.34%, while 2-year Yields fell 16 basis points to 3.82%, and the yield curve, often an indicator of recession, remains inverted.”

Now is an important time to read IBD’s The Big Picture column as the stock market is trending up.

5 Dow Jones Stocks to Buy Now and Watch

Dow Jones stocks to buy and watch: Boeing, Cisco Systems, Nike

Dow Jones leader Boeing is approaching the buy point at 221.43 on a flat base, according to IBD MarketSmith pattern recognition. Shares fell 0.7% on Tuesday, snapping a six-day winning streak and closing just 3% off recent entries. BA shares fell 0.5% early Wednesday morning.

Cisco Systems broke through 51.84 buy points on a flat base during last week’s rally. On the bullish side, the relative strength of stocks has hit new highs in recent weeks, a sign of market outperformance. Shares rose 0.3% on Wednesday.

Nike shares rebounded to the 50-day line during a 1.7% gain on Tuesday. Early entries on 126.16 are also valid. NKE shares fell 0.7% on Wednesday.

4 top growth stocks to watch stock market rally

Top stocks to buy and watch: Axon, ServiceNow, Southern Copper

IBD Leaderboard shares Axon fell 1.9% to close short-term consolidation below the buy point of 226.10 on Tuesday. Meanwhile, it remains above his March 21 high early entry of 221.79. AXON shares fell 0.3% on Wednesday.

inside story: Axon’s products are considered critical to law enforcement and have helped build public trust. On the other hand, cloud-based software for managing police evidence, records and communications aims to make officers more productive.

One key metric shows how essential police departments view Axon contracts. Axon’s net earnings retention rate in the fourth quarter was 121%. This means that contract growth more than offsets minimal customer attrition.

IBD SwingTrader pick ServiceNow moved further up the right side of the cup base with 494.72 buy points. Watch out for potential handles offering lower entries. NOW shares fell 0.1% early Wednesday.

Backstory: NOW Software tracks and manages the services provided by the Information Technology Department. A self-service technical portal also gives employees access to administrative and workflow tools.

The Santa Clara, Calif.-based enterprise software maker says earnings increased 56% to $2.28 per adjusted share in its latest quarter. Earnings increased 20% to his $1.94 billion.

After Tuesday’s 3.15% drop, Southern Copper remains just 5% away from the double bottom 78.75 buy point. SCCO’s stock fell 1% on Wednesday morning.

Backstory: Southern Copper is engaged in the development, production and exploration of copper, zinc, silver and other minerals and metals. It operates in Peru and Mexico. The company is traded on the New York Stock Exchange and the Lima Stock Exchange. A bet on copper is a bet on a stronger global economy and green energy. Copper is heavily used in renewable energy projects and electric vehicles.

Learn how to time the market with IBD’s ETF Market Strategy

Stocks to buy and monitor in the stock market rally

These are the top four stocks to watch in today’s stock market, including two Dow Jones leaders.

Company Name symbol correct purchase point Purchase point type
Service Now (now) 494.72 cup base
Nike (NKE) 131.41 flat base
Axon Enterprise (Axon) 226.10 Linking
Cisco Systems (CSCO) 51.84 flat base
Source: IBD data as of 5 April 2023

Join IBD experts as they analyze key stocks in the current stock market rally on IBD Live

tesla stock

Tesla shares fell another 1.1% on Tuesday, extending Monday’s decline. It is still below the 200.76 buy point for the handle cup and just above the 50-day line. The stock closed 50% off its 52-week high on Tuesday.

TSLA shares fell 2.8% in early trading, adding to Tuesday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 0.3% on Tuesday, ending a four-day winning streak. The stock price remains at its highest level since August. AAPL shares fell 0.7% on Wednesday.

Microsoft shares remain in a buy range above the 276.86 buy point on a flat basis amid a second drop on Tuesday. The stock price is in the 5% buy area from the buy point to 290.70. MSFT shares fell slightly early Wednesday.

Microsoft’s stock soared earlier this month after it announced it would add artificial intelligence tools to its popular suite of Office productivity applications. This follows the company’s investment in artificial intelligence startup OpenAI, the company behind his much-talked-about ChatGPT application.

Follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average here.

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