Dow Jones futures and the other major indexes traded squarely lower Wednesday with economic indicators from the Federal Reserve due later in the day. Four early losers on the stock market today were chip giants ASML (ASML), Nvidia (NVDA) and Taiwan Semiconductor (TSM), along with electric-vehicle leader Tesla (TSLA).
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Small Caps, Dow Jones Continue To Lead; Toast, Uber, Woodward In Focus
Prior to the opening bell, futures on the Dow Jones Industrial Average dropped 0.3% vs. fair value. Futures on the S&P 500 declined 1%, while the tech-focused Nasdaq 100 futures sold off 1.5%.
Early Wednesday, the 10-year Treasury yield ticked higher to 4.18%. Oil prices rose, with West Texas Intermediate futures trading around $81.25 a barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) was down 1.5%, as the SPDR S&P 500 ETF (SPY) declined 1% before the open.
Early Wednesday, the Biden administration said it was considering imposing tougher restrictions on companies still making advanced chip technology available to China, according to Bloomberg. Meanwhile, former President Trump suggested that Taiwan should pay the U.S. for protection in a Bloomberg interview.
Nvidia chipmaker Taiwan Semiconductor, better known as TSMC, tumbled nearly 6% in response in premarket trading.
Stock Market Today: ASML Dives
Due out at 2 p.m. ET, the Federal Reserve’s Beige Book is a report on economic conditions that is used at the Fed’s interest rate policy meetings.
Early Wednesday, ASML (ASML), Interactive Brokers (IBKR) and Johnson & Johnson (JNJ) are key earnings movers.
ASML stock plunged 8%, selling off after earnings, while shares of Interactive Brokers lost 2%. And J&J stock inched lower in premarket trading.
Elsewhere, Magnificent Seven stocks, Nvidia and Tesla sold off 3.9% and 2.1%, respectively, on the stock market today in premarket trading.
Nvidia shares fell 1.6% Tuesday, closing right at its key 21-day exponential moving average. Shares remain sharply above a split-adjusted alternative buy point at 97.40. The artificial intelligence titan is an IBD Leaderboard stock.
Meanwhile, Tesla climbed nearly 1.6% Tuesday, rising for a third straight day. Shares are up big since mid-June.
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Dow Jones Hits New High
On Tuesday, the Dow Jones Industrial Average advanced nearly 1.9% and the S&P 500 gained 0.6%. Both hit new highs. The tech-heavy Nasdaq composite inched up 0.2%.
Investor’s Business Daily’s Big Picture column commented, “As always, investors should avoid chasing stocks that have run up quickly. There’s a lot of them out there at this point. Out of the 16 stocks that appeared in the MarketSurge Growth 250 “Breaking Out Today” screen, very few names looked actionable because of strong moves before the actual breakout.”
During Tuesday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
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
Among the best companies to watch on the stock market today are AppFolio (APPF), NXP Semiconductors (NXPI), Palantir Technologies (PLTR) and Toast (TOST).
Also on the list are Dow Jones components Amazon (AMZN), American Express (AXP), Apple (AAPL), Goldman Sachs (GS) and Microsoft (MSFT).
New names on IBD MarketSurge’s “Breaking Out Today” list include Kirby (KEX). The stock broke out past a 124.92 buy point in a flat base on the stock market today and was added to IBD Leaderboard.
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 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express, Goldman Sachs
Among Dow components, payments giant American Express is in buy range above a flat base’s 244.41 entry, according to MarketSurge pattern recognition following Tuesday’s breakout move. And Goldman rallied out of buy range above a 471.48 flat-base entry.
Outside the Dow Jones index, AppFolio closed Tuesday in buy range above a flat base’s 256.73 entry. Shares lost 0.8% Wednesday.
Chip stock NXP Semiconductors rallied above a 286.87 buy point in a flat base, with a 2.8% rally Tuesday. NXP stock dropped 1% Wednesday.
Palantir Technologies remains above its 27.50 entry and in buy range. In recent weeks, the stock broke out past a 26.57 handle buy trigger. Palantir dropped 3.2% early Wednesday.
And Toast stock rallied 5.3% Tuesday, topping a 26.29 buy point in a cup with handle. Shares fell 1.5% Wednesday premarket.
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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 |
|---|---|---|---|
| Toast | (TOST) | 26.29 | Cup with handle |
| KB Home | (KBH) | 74.66 | Flat base |
| Palantir | (PLTR) | 26.57 | Handle entry |
| NXP Semiconductors | (NXPI) | 286.87 | Flat base |
Source: IBD Data as of July 17
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft were lower ahead of Wednesday’s stock market open.
Amazon is testing a 191.70 buy point in a flat base amid recent losses. Amazon stock lost 0.8% in premarket trades Wednesday.
Apple stock rose 0.2% Tuesday, just off record highs. The stock is sharply extended past a 199.62 cup-base entry. Apple shares sold off 2% early Wednesday.
Microsoft shares slipped 1% Tuesday, falling back into buy range above a flat base’s 430.82 buy point. And early Wednesday the stock was down 1.2%.
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.
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Read More: Dow Jones Falls As Nvidia, Tesla, TSMC Tumble; ASML Dives On Earnings|
