Dow Jones futures and the other major stock indexes rose Wednesday as Wall Street braced for a Federal Reserve rate decision and comments from Fed Chairman Jerome Powell. Three of the early movers in the stock market today were software giant Microsoft (MSFT), chip leader Advanced micro devices (AMD) and artificial intelligence giant Nvidia (NVDA).
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Nasdaq slips in gains, Fed; Spotify, Progressive, Texas Roadhouse in spotlight
Before the opening bell, Dow Jones futures rose 0.2% from fair value, while S&P 500 futures rose 1.3%. Tech-focused Nasdaq 100 futures rose 2.2% in morning action.
On Wednesday morning, the 10-year Treasury yield fell slightly, 4.1%. Oil prices rose, with West Texas Intermediate futures trading around $77.15 a barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 2.2%, while the SPDR S&P 500 ETF (SPY) rose 1.3% before the open.
Shares of Nvidia, an IBD Leaderboard name, rose nearly 8% on Wednesday morning after Morgan Stanley downgraded the AI stock to “Top Pick” status, maintaining an overweight rating with a 144 price target. Morgan Stanley said the recent sell-off offers a good entry point, with strong data points in both the short and long term, along with exaggerated competitive concerns.
Wake-up calls still ring for Nvidia, Google, Meta and more
Stock Market Today: Rate Decision, Powell
The Fed’s long-awaited decision on interest rates is expected at 2 p.m. ET on Wednesday, followed by remarks from Fed Chief Powell. Markets see just a 4.1% chance of a rate cut on Wednesday, according to CME Group’s FedWatch tool.
But first, ADP’s employment report says the U.S. economy added 122,000 jobs in July, down from 150,000 jobs added in June and below estimates of 154,000 jobs.
Microsoft beat Wall Street targets for its fiscal fourth quarter. But Microsoft shares fell more than 1% in premarket trading as growth in Azure cloud computing disappointed.
AMD shares rose 8% in premarket trading on Wednesday after the chip leader topped analyst estimates for the second quarter on the back of record sales of data center processors. It also forecast sales above expectations for the current quarter.
Other key profit drivers on Wednesday include: Arista Networks (A NET), Boeing (BA), Pinterest (PINS), Stryker (SYK-)
Arista shares rose more than 6% in premarket trading, while Boeing gained more than 1%. Pinterest shares fell more than 9%, while Stryker lost nearly 2% in early trading.
Adapt to changing market conditions with IBD’s new exposure levels
Dow Jones recovers
On Tuesday, the Dow Jones Industrial Average rose 0.5%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite fell 1.3%.
During Tuesday’s IBD Live broadcast, the IBD Live team discussed current trading conditions and how investors should approach the stock market today.
This is an important time to read The Big Picture column amid the ongoing market action. Also read how to adapt 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
Some of the best companies to watch on the stock market today include: Tie meter (BMI), GE Aerospace (GE), Service Now (Now and Spotify (PLACE).
Also on the list are Dow Jones components Amazon (AMZN), American Express (AXP number), Apple (AAPL certificate), IBM (IBM) and Microsoft.
IBD MarketSurge’s Breaking Out Today list has been included Howmet Aviation (HWM), which reached an 85.52 cup-base buy point. Shares were up 0.7% Wednesday morning.
Check out the MarketSurge “Near Pivot” list for more stocks nearing buy points in bases. For more stock ideas, check out 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, IBM
Among Dow components, payments giant American Express moved above a flat base of 244.41 after Tuesday’s gains, according to MarketSurge pattern recognition. Shares rose 0.7% premarket Wednesday.
Meanwhile, IBM broke out last week following the company’s earnings report, and shares are trading above a 189.47 cup-with-handle entry. IBM shares were up 0.3% Wednesday morning.
Outside of the Dow Jones Industrial Average, the Badger Meter fell below a 202.81 entry on Tuesday in a flat base. Shares rose 0.4% Wednesday morning.
GE shares’ recent breakout past a 170.80 buy point remains under pressure and is below entry. Shares were up 0.8% Wednesday morning.
ServiceNow rose last week on its second-quarter earnings results, with an 806.52 handle entry, but is back below that buy trigger. ServiceNow rebounded 2.2% Wednesday morning.
Finally, music streaming platform Spotify closed just below a flat base’s 331.08 buy point after a recent breakout move. And on Wednesday morning, Spotify shares were up 1.1%.
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 that are in or near the buy zone on the current stock market.
| Company Name | Symbol | Right point of purchase | Point of sale type |
|---|---|---|---|
| Tenet Healthcare | (THC content) | 142.35 | Flat base |
| KB homepage | (KBH file) | 74.66 | Flat base |
| Service Now | (NOW) | 806.52 | Process input |
| Newmont | (NEM number) | 44.59 | Flat base |
Source: IBD data as of July 25
Join IBD experts as they analyze the leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla (TSLA) rose 0.8% in premarket trading.
Tesla shares fell 4.1% on Tuesday, losing most of Monday’s rally.
Dow Jones Leaders: Amazon, Apple
Of the Dow Jones components in the Magnificent Seven, Amazon and Apple rose ahead of the stock market’s open on Wednesday.
Amazon triggered the 7% loss rule last week after falling well below a 191.70 buy point in a flat base. Shares are also below their 50-day line. Amazon shares rose 1.2% on Wednesday.
Apple shares rose slightly on Tuesday, but are still well below their July 15 record high. Shares rose 1.2% on Wednesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more information about growth stocks, the Dow Jones Industrial Average and today’s stock market.
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