The Dow Jones Industrial Average declined 95 points Wednesday ahead of the Federal Reserve’s policy decision. Apple stock sold off despite strong earnings results late Tuesday, while Boeing surged after reporting its first quarterly profit since 2019.
Among Dow Jones leaders, Apple (AAPL) sold off 2.5% Wednesday, while Microsoft (MSFT) moved up 0.1% in today’s stock market. Both reported earnings late Tuesday. Meanwhile, Boeing (BA) and McDonald’s (MCD) reported ahead of today’s market open.
Tesla (TSLA) looked to cut into Tuesday’s 2% loss, but trimmed its gain to 0.3% Wednesday morning.
Dow Jones Today: Fed Meeting
The Dow Jones Industrial Average fell 0.3% Wednesday, while the S&P 500 traded down less than 0.1%. The tech-heavy Nasdaq composite moved up 0.6% in morning trade.
The Federal Reserve’s policy announcement is at 2 p.m. ET with Fed Chairman Jerome Powell to speak at 2:30 p.m. ET. The focus will be whether policymakers are accelerating deliberations over how and when to eventually reduce their easy-money policies amid hotter-than-expected inflation.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 0.5% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved 0.4% higher. Meanwhile, the SPDR S&P 500 ETF (SPY) declined 0.2%.
Stock Market Rally Resumes
The Nasdaq and S&P 500 looked to rebound from Tuesday’s moderate losses. The S&P 500, Nasdaq and Dow hit record highs on Monday.
Monday’s Big Picture column commented, “Major stock market indexes cooled off on Tuesday, but a late-afternoon rebound softened some of the day’s losses. Overall, the action also reflected the challenges of investing in new breakouts following a big run-up from the end of last year’s swift bear market.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Earnings: Boeing, McDonald’s
Boeing reported its first quarterly profit since 2019 early Wednesday, earning 40 cents per share on revenue of $17 billion. Boeing shares jumped 5% in morning trade and are trying to retake their key 50-day line.
McDonald’s declined more than 2% despite reporting better-than-expected Q2 earnings and sales results. Shares remain in the 5% buy area past a 238.28 buy point in a flat base.
Stocks To Buy And Watch: AMD, Roku, Twitter
Chip giant Advanced Micro Devices is tracing a cup-with-handle base that shows a 95.54 buy point, according to IBD MarketSmith chart analysis. Shares advanced 1.8% Wednesday in the wake of the company’s strong Q2 results.
According to the IBD Stock Checkup, AMD stock shows a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Friday’s IBD Stock Of The Day, Roku, gave up its double-bottom-with-handle’s 463.09 buy point amid Tuesday’s sell-off, according to IBD MarketSmith chart analysis, The 5% buy zone goes up to 486.24. Shares climbed 1.9% Wednesday morning.
Social media giant Twitter is trying to break out past a double-bottom-with-handle’s 72.17 buy point. Shares topped the entry on Friday following the company’s strong earnings results, but closed just below the entry. Shares moved up 0.4% Wednesday morning, but remain below the entry.
Tesla stock moved up 1% Wednesday, looking to retake some of Tuesday’s 2% loss. The electric-vehicle giant is again trying to find support around its long-term 200-day moving average. Another strong show of support at these levels would be bullish for the stock’s prospects.
On the downside, Tesla’s RS line remains far from its old highs. A lagging RS line is a sign of an underperforming stock relative to the broad market. Tesla stock remains about 27% off its all-time high, even as the major indexes reached record highs Monday.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple narrowed its early decline to 0.6% Wednesday morning despite crushing Wall Street’s targets for its fiscal third quarter thanks to stronger-than-expected iPhone sales.
The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Software giant Microsoft rallied 0.5% early Wednesday after cruising past Wall Street’s targets for the June quarter and guiding higher for the current period.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE: