Stocks Rise Ahead Of Fed Decision, Powell Comments

The Dow Jones Industrial Average rallied 190 points Wednesday during the first trading session of November, ahead of the Federal Reserve’s interest rate decision and Fed Chairman Jerome Powell’s subsequent comments. Meanwhile, Paycom stock crashed after its quarterly earnings report.

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Early Wednesday, ADP’s employment report showed the U.S. economy added 113,000 jobs in October, below estimates for a 150,000 increase and up from September’s 89,000 rise. ADP’s report is a precursor to Friday’s jobs report from the Labor Department.

CME’s FedWatch survey on Tuesday showed zero chance of any rate hike when the Fed concludes its two-day meeting on Wednesday. In fact, the survey of fed funds interest rate speculators went so far as to show a 3% probability that the central bank will trim short-term rates — currently in a 5.25%-5.5% target range — by a quarter point.

The Fed decision is out at 2 p.m. ET.

On the earnings front, Wednesday’s movers included Advanced Micro Devices (AMD), CVS Health (CVS), First Solar (FSLR), Paycom Software (PAYC), Wingstop (WING) and Yum Brands (YUM).

AMD stock rose nearly 2% in morning trade, while CVS shares fell 5%. First Solar shares rallied more than 5%, as PAYC stock plunged 37%. Finally, WING stock rose 2.1%, as Yum Brands inched higher in early action.

Dow Jones Today: Oil Prices, Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.55%, while the S&P 500 moved up 0.75%. The tech-heavy Nasdaq composite gained 0.9% in morning action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.9%, while the SPDR S&P 500 ETF (SPY) moved up 0.7% early Wednesday.

The yield on the 10-year U.S. Treasury bond ticked lower to 4.78% Wednesday. On Tuesday, the benchmark settled at 4.87%.

Oil prices rebounded Tuesday morning, as West Texas Intermediate futures rose almost 3%, trading above $83 a barrel.

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Stock Market Correction

On Tuesday, the Dow Jones Industrial Average moved up 0.4%, while the S&P 500 climbed 0.65%. The tech-heavy Nasdaq composite gained 0.5%, extending a win streak to three sessions.

Tuesday’s Big Picture column commented, “The Nasdaq composite suffered its third straight monthly decline (for October). A 2.8% drop this past month to 12,851 sent the premier index for growth stocks 21% below its all-time high 16,212.”

Now is an important time to read IBD’s The Big Picture column, with the current outlook still in market correction status. Be sure to read how to handle a weak market environment.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stock Market Today: Best Stocks To Watch

International Seaways (INSW), Lululemon Athletica (LULU), Arista Networks (ANET) and Tradeweb Markets (TW) — as well as Dow Jones stocks Walmart (WMT) and UnitedHealth (UNH) — are among the best stocks to watch in the ongoing stock market correction.

International Seaways and LNW stock are recent IBD Stocks Of The Day. Lululemon and Walmart both featured in this Stocks Near A Buy Zone column.

Dow Jones Stocks To Watch

Dow Jones retail titan Walmart is tracing a cup-with-handle base with a 164.33 buy point, according to IBD MarketSmith chart analysis. WMT stock found support at its key 50-day line this week. WMT stock inched higher Wednesday.

Healthcare giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock dropped 0.8% Wednesday morning.

4 Top Growth Stocks To Watch In The Stock Market Correction

Stocks To Buy And Watch: Arista Breaks Out

International Seaways is trying to break out past a cup-with-handle’s 48.40 entry, but gave up the buy point during Monday’s sharp drop. INSW stock was unchanged Wednesday morning.

Lululemon climbed 0.4% Tuesday, still below a flat base’s 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was down 0.6% Wednesday morning.

Arista Networks surged 14% Tuesday, breaking out past a consolidation’s 198.70 buy point. Shares closed just above the entry. Keep in mind the market correction should keep you from buying breakout stocks. ANET stock traded slightly higher Wednesday morning.

Tradeweb broke out of a flat base’s 87.53 buy point Thursday after the company’s third-quarter earnings. TW stock added 1.45% Tuesday and is showing unusual strength in a weak environment. TW stock was up 0.5% in early trades Wednesday.

Best Stocks In Today’s Stock Market Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name
Symbol
Correct Buy Point
Type Of Buy Point

International Seaways
(INSW)
48.40
Cup with handle

UnitedHealth
(UNH)
546.78
Handle entry

Arista Networks
(ANET)
198.70
Consolidation

Tradeweb Markets
(TW)
87.53
Flat base

Source: IBD Data As Of Oct. 31, 2023

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