Futures Drop Ahead Of Fed Report

Futures Drop Ahead Of Fed Report

The Dow Jones Industrial Average briefly sold off more than 400 points Wednesday, as Wall Street awaited the Federal Reserve’s Beige Book on economic conditions. Artificial intelligence giant Nvidia (NVDA) fell from record highs Wednesday, while Robinhood Markets (HOOD) jumped on the stock market today after the company announced a stock buyback.


After the opening bell, the Dow Jones Industrial Average lost 0.9%, while the S&P 500 fell 0.7%. The tech-focused Nasdaq composite dropped 0.5% in morning action.

Early Wednesday, the 10-year Treasury yield ticked higher to 4.57%. Oil prices climbed as West Texas Intermediate futures traded above $80 a barrel.

Among U.S. exchange traded funds, the Invesco QQQ Trust (QQQ) lost 0.5% and the SPDR S&P 500 ETF (SPY) dropped 0.7%.

Robinhood stock rose nearly 1% after the trading platform unveiled a $1 billion share repurchase program. Shares closed Tuesday just below a 20.55 cup-base entry.

Stock Market Today: Fed Report Due

Due out at 2 p.m. ET, the Federal Reserve’s Beige Book compiles evidence on economic conditions from the 12 Federal Reserve districts. This report on economic conditions is used at Fed meetings in which it sets interest rate policy.

Key earnings movers Wednesday include Abercrombie & Fitch (ANF), Cava (CAVA), Chewy (CHWY) and Dick’s Sporting Goods (DKS).

Abercrombie shares surged more than 18%, but Cava stock tumbled more than 8%. Chewy soared 21%, and Dick’s stock advanced 15% in early trading.

Meanwhile, American Airlines (AAL) dived more than 12% after the carrier cut its profit forecast for the current quarter, citing weakening pricing power despite expectations for record travel demand in the summer season. The stock is sinking further below its 200-day moving average.

ConocoPhillips (COP) will buy Marathon Oil (MRO) in a $22.5 billion all-stock deal. Conoco shares fell 2% while Marathon jumped 10%.

Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Dow Jones Falls Tuesday

On Tuesday, the Dow Jones industrials dropped nearly 0.6%, while the S&P 500 inched higher. The Nasdaq composite gained 0.6%.

Investor’s Business Daily’s Big Picture column on Tuesday commented, “The (Nasdaq) showed bullish price action with another all-time high and a close above Thursday’s high. But the invested percentage in the accompanying Market Pulse stays at 60%-80%. With most growth stocks still acting quite well, favoring the 80% side makes sense. Just keep in mind that there’s a large number of extended stocks out there. Avoid the pitfall of chasing the strongest performers that are well past proper entries.”

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

Monday.com (MNDY), Netflix (NFLX) and Crocs (CROX) — plus Dow Jones components Apple (AAPL), Merck (MRK) and Microsoft (MSFT) — are among the best companies to watch on the stock market today.

Microsoft was featured in IBD’s Stocks Near A Buy Zone column as it trades just below a 430.82 buy point.

In IBD MarketSurge’s “Breaking Out Today” list, Apollo Global Management (APO) is trying to break out a 117.15 buy point. Check out the MarketSurge “Near Pivot” list for stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50Big Cap 20 and Stocks Near A Buy Zone.

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, but shares took a tumble below their 50-day line Tuesday. The stock was slightly lower on the stock market today.

Recent IBD Stock Of The Day Crocs is moving further past a 146.79 buy point in a cup base, as shares rallied more than 4% Tuesday. Crocs stock dropped 1.2% Wednesday.

Outside the Dow Jones index, Monday.com is holding above a cup base’s 239 buy point, despite recent losses, according to IBD MarketSurge. Shares fell 0.3% Wednesday morning.

Streaming giant Netflix edged higher Tuesday, further above the 639 cup entry but still in buy range. Netflix stock rallied more than 1% Wednesday.

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 NameSymbolCorrect Buy PointType Of Buy Point
Microsoft (MSFT)430.82Flat base
Netflix (NFLX)639Cup base
Crocs (CROX)146.79Cup base
Taiwan Semiconductor (TSM)148.43Double bottom
Source: IBD Data As Of May 28, 2024

Join IBD experts as they analyze leading stocks in the stock market today on IBD Live

Magnificent Seven Stocks: Nvidia, Tesla

Among Magnificent Seven stocks, Nvidia lost 1.4%, and Tesla (TSLA) moved down 0.1% on the stock market today.

Nvidia stock extended its recent gains, with a 7% surge Tuesday and shares were set to hit more record highs Wednesday morning. The company is an IBD Leaderboard stock. Last week, Nvidia stock topped a secondary buy point at 974, gapping up to new highs.

Tesla stock dropped 1.2% Tuesday, still holding above its 50-day line. Shares remains about 40% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Wednesday’s stock market open.

Apple stock edged up Tuesday, still forming a cup base that has a 199.62 buy point. Shares climbed 1% Wednesday.

Microsoft shares moved up a fraction Tuesday, to just below a flat base’s 430.82 buy point, after a brief breakout attempt last week. Early Wednesday, Microsoft stock fell 0.2%.

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.


Check Out IBD’s New Exposure Levels To Help You Stay In Step With The Market Trend

Top Growth Stocks To Buy And Watch

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Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition

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