The Dow Jones Industrial Average jumped more than 600 points on Wednesday, looking to rebound from Tuesday’s stock market plunge. Bitcoin jumped over 8% after President Biden’s executive order on cryptocurrencies. Treasury yields climbed, while US oil prices fell more than 5%. Russia’s ongoing invasion of Ukraine, as well as the West’s response, remains the focus of the stock market today.
Before the opening on Wednesday, MongoDB (MDB) released its quarterly results. MDB shares jumped more than 13% in morning trading. The stock ended Tuesday more than 50% off its 52-week high.
Among the leaders of the Dow Jones, Apple (AAPL) increased by 2.1% and Microsoft (MSFT) rose 2.6% in today’s stock market. UnitedHealth (A H), a Dow Jones stock to watch, ended Tuesday within striking distance of a new buy point. Nike (NKE) soared to the top of the Dow Jones, up more than 5%.
INN 50 Stock Zim Integrated Shipping Services (ZIM) jumped more than 5% after strong fourth-quarter revenue and profit. Leader in electric vehicles You’re here (TSLA) rebounded more than 2% early Wednesday, looking to add to Tuesday’s 2.5% rebound.
Amid a volatile, headline-driven market, Anthem (ANTM), Costco (COST), Quantum Services (REP) and Union Pacific (UNP) are among Wednesday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD stocks. Quanta was the IBD stock of the day on Tuesday. Costco was Tuesday’s IBD 50 Stocks To Watch pick and featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russian Invasion, Oil Prices
After the market opened on Wednesday, the Dow Jones Industrial Average jumped 1.7% and the S&P 500 1.8%. The Nasdaq jumped 2.3% in morning trading.
The 10-year Treasury yield climbed to 1.91% on Wednesday morning, after closing at 1.87% on Tuesday.
U.S. oil prices fell more than 5% on Wednesday, with West Texas Intermediate crude trading around $117 a barrel. WTI briefly rose above $130 a barrel on Monday to hit its highest level since September 2008, according to Dow Jones Market Data. On Tuesday, President Biden banned imports of Russian oil and natural gas, which could push gas prices even higher.
Russia and Ukraine agreed to open escape routes for civilians in several Ukrainian cities on Wednesday morning. However, the Russian military has been reportedly bombing civilian escape routes for four days. Meanwhile, Russian troops continued their attempts to encircle Kiev. The head of Russian diplomacy is due to meet his Ukrainian counterpart in Turkey on Thursday.
The price of Bitcoin has jumped more than 8% in the past 24 hours, according to CoinDesk. Bitcoin traded around $42,200 in morning trading.
Cryptocurrency exchange Coinbase (PIECE OF MONEY) jumped nearly 9% after Wednesday’s open. COIN stock ended Tuesday more than 60% off its 52-week high. Meanwhile, the ProShares Bitcoin Strategy ETF (BITO) climbed 9%.
President Biden is about to sign a Executive Decree Wednesday which will attempt to investigate possible risks, as well as provide a framework for the development of cryptocurrencies and explore the potential of a central bank-issued digital currency.
“The United States must maintain technology leadership in this rapidly growing space, supporting innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate,” the executive order reads.
Stock market rally attempt
The stock market posted more disappointing action on Tuesday, as major equity indices ended with modest to moderate losses. Despite Tuesday’s losses, all three major stock indices are still above their Feb. 24 intraday lows, meaning Wednesday will be day 10 of the ongoing rally attempt.
Tuesday’s Big Picture commented: “As reported in Monday’s Big Picture, the Nasdaq has officially met the definition of a garden variety bear market. That is, the composite has fallen at least 20% from its all-time high of 16,212. The benchmark for growth companies has also returned all of its gains since May 2021.”
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Investors can also create watchlists, find companies near a buy point, or develop custom screens on IBD MarketSmith.
Four Dow Jones stocks to watch now
Dow Jones stocks to watch: UnitedHealth
Managed care giant UnitedHealth continues to post a buy point of 501.03 in a double bottom basis. Shares ended Tuesday about 5% off their last entry after crossing their 50-day line. Shares of UNH rose 1.4% on Wednesday morning.
On the upside, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four growth stocks to watch in the currentrent Stock market correction
Stocks to watch: Anthem, Costco, Quantum ServicesUnion Pacific
Anthem remains below the 470.12 entry on a flat basis after Tuesday’s 0.3% rise. The anthem was a recent IBD action of the day. The shares were up 1.3% on Wednesday morning.
Costco stock continues to build a cup base with a buy point of 571.59, according to IBD MarketSmith’s chart analysis. Keep an eye out for the formation of a handful, which would reduce the optimal entry for the risk. On the upside, the stock’s relative strength line is already reaching new highs, a sign of extreme strength, especially during periods of significant market weakness. Costco shares rebounded 0.1% early Wednesday.
Tuesday’s IBD stock Quanta Services broke above an early buy point of 113.81 on Tuesday on the session’s 8.2% rise. Meanwhile, the stock continues to rise on the right side of a consolidation with a buy point of 124.79. PWR shares rose 2% early Wednesday.
IBD Leaderboard Union Pacific stock dropped its fixed base entry of 256.21 amid Tuesday’s 3.1% decline. Shares of UNP rose 1.8% on Wednesday morning.
According to the ranking analysis, Friday’s progress justified an increase in position size from a quarter to a half. The RS line had already reached new heights, a sign of a market leader.
Tesla stock rebounded more than 2% early Wednesday, looking to add to Tuesday’s 2.5% rebound. Stocks are still below their 200-day long-term moving average.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 33% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a buy point of 176.75, according to IBD MarketSmith’s chart analysis. Stocks are moving further away from potential entry after Tuesday’s 1.2% decline. On Tuesday, Apple introduced a cheaper 5G iPhone and launched a new high-end Mac computer for creative professionals.
AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. The stock’s relative strength line remains near recent highs in the face of stock market weakness, meaning institutions remain hesitant to sell their Apple shares. Apple shares rose 2.1% on Wednesday.
Software leader Microsoft fell 1.1% on Tuesday, briefly hitting its lowest level since July 1. Stocks have fallen further below the 200-day line as they continue to build a new base. MSFT stock rose 2.6% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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