The Dow Jones Industrial Average rose Wednesday morning, as second-quarter earnings continued to roll out. Meanwhile, Penn Entertainment (PENN) soared on the company’s sports-betting partnership with ESPN.
Early Wednesday, Array Technologies (ARRY), Celsius Holdings (CELH), Duolingo (DUOL), Lyft (LYFT) and Penn Entertainment — along with Rivian Automotive (RIVN), Roblox (RBLX), Super Micro Computer (SMCI), Toast (TOST) and Upstart (UPST) — were key earnings movers.
Array shares soared 21%, while CELH stock leapt 12% and Duolingo shares advanced 5%. LYFT stock skidded almost 8%.
Penn Entertainment rocketed 13% after the company said it will rebrand its Barstool Sportsbook as ESPN Bet, launching this fall in the 16 legalized-betting states where Penn is licensed. ESPN, which has been looking for a sports-betting partner, will use ESPN Bet exclusively.
Stock Market Today
Broadcom (AVGO), Skechers (SKX), MercadoLibre (MELI) and Interactive Brokers (IBKR) — as well as Dow Jones stocks Boeing (BA) and Intel (INTC) — are among the best stocks to watch as pressure on the market’s uptrend continues.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. MercadoLibre is featured in this Stocks Near A Buy Zone column. And Interactive Brokers is an IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite moved down 0.4% in morning action.
The 10-year U.S. Treasury yield ticked lower to 4% Wednesday morning, after settling at 4.02% on Tuesday.
West Texas Intermediate oil prices hit their highest level in a year, as WTI futures rose more than 1% to trade just above $84 a barrel. The weekly oil inventory report from the Energy Information Administration is due out at 10:30 a.m. ET.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average slipped just over 0.4% but closed near its session high and held support at its 21-day exponential moving average. The S&P 500 pared a 1.2% morning loss to just 0.4%. The Nasdaq composite, down as much as 1.6%, closed with a loss of 0.8%.
Tuesday’s Big Picture column commented, “It was a resilient performance for the stock market Tuesday, but raising some cash in the portfolio still makes sense. Take a look at your strongest performers and consider taking partial or even full profits. But if your leading stocks are still holding above key support levels, give them room to work by holding on to some shares.”
Now is an important time to read IBD’s The Big Picture column as the stock market pulls back from this year’s highs.
Dow Jones Stocks: Boeing, Intel
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares briefly fell back into the 5% buy area that went up to 235.11 before Monday’s 3% rally sent them back out of the buy zone. BA stock moved up 0.1% Wednesday morning.
Chip giant Intel is holding close to a 37.19 buy point out of a cup-with-handle base, according to IBD MarketSmith pattern recognition. Shares are about 5% away from their latest entry. INTC stock was slightly higher Wednesday morning.
Stocks To Watch: Broadcom, MercadoLibre, Skechers, Interactive Brokers
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry, as they pull back to their 50-day line. Earnings are due Aug. 31. AVGO stock inched lower Wednesday morning.
MercadoLibre surged Monday, breaking out past a cup base’s 1,365.64 buy point. Meanwhile, an early entry at 1,326.61 was also in play. MELI stock declined more than 2% Tuesday, just above the early entry. MELI stock rose 1.5% early Wednesday.
Skechers broke out in recent weeks when it surged above a 54.77 buy point after the company’s strong quarterly results. Shares reversed 0.9% higher Tuesday, closing just below the buy point. SKX stock was up 0.2% Wednesday.
IBD SwingTrader stock Interactive Brokers broke out last week past a 90.19 buy point in a consolidation, but the stock is back below that buy trigger. Shares last week also topped a handle entry at 87.09. Shares lost 0.3% Wednesday morning.
Best Stocks In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|UiPath||(PATH)||19.03||Cup with handle|
Source: IBD Data As Of Aug. 9, 2023
IBD Leaderboard stock Tesla slipped another 0.7% Tuesday, extending a losing streak to three sessions and falling further below its 50-day line. A bullish rebound from here would be a positive for the stock’s near-term prospects. A decisive retake would also place the electric-vehicle leader in a new buy area.
Conversely, a further weakness would mean the stock requires more time to consolidate before a new entry.
TSLA stock looked to snap its losing streak, but reversed lower to fall 0.8% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 0.5% Tuesday, ending a five-day losing streak. Shares remain below their 50-day line. While AAPL stock is still above its 157.38 buy point, recent weakness was a sell signal, which means investors should lock in gains. Shares lost 0.6% early Wednesday.
Microsoft shares hit a new recent low Tuesday, falling 1.2%. With shares squarely below their 50-day line, the stock needs more time to consolidate before a new buy point emerges. And on Wednesday morning, Microsoft shares were down 0.8%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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