The Dow Jones Industrial Average dropped Wednesday morning, as Wall Street braced for the minutes from the Federal Reserve's latest policy meeting. Meanwhile, Nvidia (NVDA) earnings are due out on the stock market today after the close.
X
After the opening bell, the Dow Jones industrials and the S&P 500 both lost less than 0.1%. The tech-focused Nasdaq composite rose 0.1% in morning action.
Early Wednesday, the 10-year Treasury yield ticked higher to 4.45%. Further, oil prices declined as West Texas Intermediate futures traded below $78 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up slightly, while the SPDR S&P 500 ETF (SPY) fell 0.1%.
Stock Market Today: Nvidia Earnings, Fed Minutes
Nvidia earnings are due out Wednesday after the market closes. Analysts polled by FactSet expect the graphics-chip maker to earn an adjusted $5.60 a share, up 414% year over year, on sales of $24.59 billion, up 242% in the quarter ended April 28. That would mark its fourth straight quarter of triple-digit percentage growth in sales and earnings.
Nvidia stock pared losses to 0.5%, as shares hold above a handle buy point at 922.20. The artificial intelligence giant is an IBD Leaderboard stock.
Other key earnings movers Wednesday include Dycom (DY), Target (TGT) andTJX (TJX).
Dycom shares jumped 8.5%, while Target dived 10%. And TJX rose 4.5% in early morning trading.
Meanwhile, existing-home sales are due out at 10 a.m. ET. April sales are expected to hold steady at an annualized rate of 4.195 million, per Econoday.
Later Wednesday, the minutes for the Fed meeting that ended May 1 are set for 2 p.m. ET. Investors will be looking for further clues into the thoughts of Chairman Jerome Powell and other central bankers on the future path of interest rates.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Rises
On Tuesday, the Dow Jones Industrial Average moved up 0.2% and the S&P 500 rose 0.3%. The tech-heavy Nasdaq composite climbed 0.2%, hitting a record high.
Investor's Business Daily's Big Picture column on Tuesday said, "While some would argue that a lot of good news has been priced into Nvidia and a 'sell the news' scenario is possible, conviction holders know there's a chance for another blowout quarter and raised outlook from the AI bellwether."
During Tuesday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market rally.
Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today:Best Stocks To Watch
Robinhood Markets (HOOD),PDD (PDD), Taiwan Semiconductor Manufacturing (TSM) and Trade Desk (TTD) — plus Dow Jones components Merck (MRK) and Microsoft (MSFT)— are among the best companies to watch on the stock market today.
Microsoft and Trade Desk are featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Monday.com (MNDY) broke out past a cup base's 239 buy point. Check out the MarketSurge "Near Pivot" list for stocks nearing buy points in bases.
To find more stock ideas, checkIBD Stock ListslikeIBD 50,Big Cap 20andStocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Component Merck
Drug giant Merck is building a flat base that has a 133.10 entry. The stock lost 0.3% on the stock market today.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Temu parent PDD is breaking out past a cup-with-handle's 142.32 buy point, according toIBD MarketSurge. PDD shares rose almost 1% Wednesday after the company's earnings results.
Robinhood Markets added to Monday's breakout gains, with a 0.6% rise Tuesday, further above a 20.55 buy point in a cup base. Shares edged higher early Wednesday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock rallied 1.4% Wednesday.
Trade Desk dropped 1.9% Tuesday, holding above a 94 entry in a consolidation. Trade Desk was up 0.1% Wednesday morning.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Tesla
Among Magnificent Seven stocks, Tesla (TSLA) dropped 2.2% early Wednesday morning.
Tesla stock surged 6.7% Tuesday, decisively rebounding from its 50-day line. Shares remain nearly 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft traded mixed after Wednesday's stock market open.
Apple stock added 0.7% Tuesday, extending a win streak to seven sessions. Shares are forming a cup base that has a 199.62 buy point, but keep an eye out for a potential handle to offer a lower entry. The stock was down 0.1% Wednesday morning.
Microsoft shares moved up 0.9% Tuesday, briefly topping a flat base's 430.82 buy point. And Microsoft stock rose 0.6% Wednesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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