The Dow Jones Industrial Average slid 150 points Wednesday, as Apple stock sold off from Tuesday’s all-time highs. Tesla stock skidded lower in today’s stock market after rallying early on the back of a jump in China sales.
Among the Dow Jones leaders, Apple (AAPL) traded down over 1%, while Microsoft (MSFT) moved down 0.5% Wednesday. American Express (AXP) is tracing a new base, but is below a key technical level.
Tesla (TSLA) looked to add to Tuesday’s 2.6% advance, but turned lower Wednesday morning. The EV leader is in buy range past a new entry. PayPal (PYPL) traded 0.7% lower Wednesday, as it approaches a new buy point.
Among the top stocks to buy and watch, DocuSign (DOCU), Palantir Technologies (PLTR), Semrush (SEMR) and Shopify (SHOP) are in or near new buy zones.
DocuSign, Microsoft and Tesla are IBD Leaderboard stocks. Semrush is an IBD IPO Leader. DocuSign was Friday’s IBD Stock Of The Day. Shopify is an IBD SwingTrader stock.
Dow Jones Today: Yellen Warning
The Dow Jones Industrial Average dropped 0.4% after giving up early gains Wednesday. The S&P 500 lost 0.5%. The tech-heavy Nasdaq traded down 1% in midday trade.
Early Wednesday, Treasury Secretary Janet Yellen urged House Speaker Nancy Pelosi and Congress to raise the debt ceiling and said the possibility of a U.S. default can have drastic consequences for financial markets. Yellen warned, “A delay that calls into question the federal government’s ability to meet all its obligations would likely cause irreparable damage to the U.S. economy and global financial markets.”
Among exchange traded funds, the Innovator IBD 50 (FFTY) lost 1% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 0.15%. Meanwhile, the SPDR S&P 500 ETF (SPY) was unchanged.
Stock Market Rally Continues
The Nasdaq eased from Tuesday’s new highs, while the S&P 500 threatened to fall for a third straight day Wednesday. The Dow Jones Industrial Average is again testing its key 50-day moving average line.
Tuesday’s The Big Picture column commented, “The stock market returned from the Labor Day holiday with little appetite for buying. Even the Nasdaq, which made a new high, was lackluster. The S&P 500 fell 0.3%, though it held above the 4500 level. … Despite a flagging performance, the Nasdaq managed a new intraday high at 15,403.”
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Dow Jones Stocks To Buy And Watch: American Express
Dow Jones leader American Express is tracing a flat base with a 179.77 buy point, according to IBD MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking support at that critical level would be bullish for the stock’s immediate prospects. Shares were down 0.5% Wednesday.
Through the end of August, American Express was the No. 2 performer on the Dow Jones Industrial Average, advancing more than 37%. Goldman Sachs (GS) was the top performer with a 56.9% climb through Aug. 31.
Stocks To Buy And Watch: DocuSign, Palantir, Semrush, Shopify
IBD Leaderboard stock DocuSign declined 1% Wednesday and is trading below a flat-base buy point of 310.61 following Friday’s breakout. The company reported strong earnings results late Thursday, sparking Friday’s 5.3% advance.
Palantir Technologies gave up its cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis, amid Wednesday morning’s 3% loss. The 5% buy area tops out at 27.34. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.
IPO Leader Semrush is trading just past the 26.41 buy point in a cup base following last week’s breakout move. The SEO leader dropped 0.4% Wednesday. The 5% buy zone tops out at 27.73.
Semrush was featured in last week’s IPO Leaders column.
IBD SwingTrader stock Shopify continues to trace a flat base that shows a 1,650.10 buy point. According to IBD Stock Checkup, SHOP stock boasts a 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
SHOP stock declined nearly 1% early Wednesday and is trying to find support at its 50-day line.
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PayPal stock dropped 0.5% Wednesday, threatening to fall after Tuesday’s 1.4% gain. The top stock is just above its 50-day moving average line. Shares of the payment processor are tracing a flat base with a 310.26 buy point. The stock is about 6% away from the new entry.
Early Wednesday, PayPal said it’s acquiring Japanese “buy now, pay later” consumer financing startup Paidy for about $2.7 billion.
Tesla stock skidded over 2% Wednesday, threatening to slip from Tuesday’s solid gains and snap a two-day win streak. Tesla’s wholesale sales in China totaled 44,264 in August, up 34% from July’s 32,968, according to the China Passenger Car Association early Wednesday.
Tesla stock is in buy range above another alternate entry at 730. In recent weeks, shares regained their 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 1% Wednesday, falling from Tuesday’s new high at 157.26. Apple shares are nearly out of buy range above a 148 trendline buy point.
Apple announced Tuesday that it will hold its fall product launch event on Sept. 14. Analysts expect the consumer electronics giant to reveal its latest iPhone handsets and Apple Watch smartwatches at the event.
Software giant Microsoft dropped 0.5% Tuesday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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