Dow Jones Falls As Fed Decision Looms; 4 Top Stocks To Buy And Watch

The Dow Jones Industrial Average dropped 125 points up of Wednesday's Fed decision. Tesla banal reversed little aft trading adjacent grounds highs. And Academy Sports + Outdoors, Adobe, Alphabet and Goldman Sachs are successful oregon adjacent bargain zones successful today's banal marketplace action.

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Among the Dow Jones leaders, Apple (AAPL) roseate 0.3%, portion Microsoft (MSFT) mislaid 0.4% successful today's banal market. American Express (AXP), JPMorgan Chase (JPM) and Nike (NKE) proceed to commercialized adjacent new bargain points.

Tesla (TSLA) fell 0.5% Wednesday, threatening to adhd to Tuesday's 3% skid.

Among the apical stocks to bargain and watch, Academy Sports + Outdoors (ASO), Adobe (ADBE), Alphabet (GOOGL) and Goldman Sachs (GS) are successful oregon adjacent caller bargain zones.

Microsoft and Tesla are IBD Leaderboard stocks. Alphabet is an IBD SwingTrader stock. Goldman was featured successful this week's Stocks Near A Buy Zone story and was Tuesday's IBD Stock Of The Day.

Dow Jones Today: Fed Decision

Early Wednesday, the Dow Jones Industrial Average dropped 0.2%. The S&P 500 traded down 0.1%, portion the tech-heavy Nasdaq roseate 0.2% successful midday trade.

U.S. Stock Market Today Overview

Among exchange traded funds, Innovator IBD 50 (FFTY) mislaid 0.8% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) roseate 0.1%. And the SPDR S&P 500 ETF (SPY) moved down 0.2%.

The Federal Reserve volition merchandise its argumentation connection astatine 2 p.m. ET Wednesday. The cardinal slope is expected to announce that it volition statesman steadily reducing its bond-buying program. Fed main Jerome Powell follows with a quality league astatine 2:30 p.m. ET.

Meanwhile, ADP payroll information showed nonfarm backstage employers added 571,000 workers successful October, amended than Econoday projections for an summation of 400,000 workers. The Labor Department's jobs study is owed retired Friday.

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Stock Market Rally

The banal marketplace rally gained further spot connected Tuesday, arsenic the Dow Jones Industrial Average, Nasdaq and S&P 500 notched much all-time highs. The Dow Industrials closed supra the 36,000 level for the archetypal clip ever.

On Tuesday, The Big Picture commented, "The Nasdaq composite climbed for a seventh consecutive time and added 0.3%. The S&P 500 roseate 0.4%. Moderate arsenic they whitethorn person been, scale gains showed nary letup among buyers. Indexes closed adjacent league highs for a 4th consecutive day."

With the Nasdaq astatine all-time highs and a constricted magnitude of distribution, investors should stay bullish connected the affirmative inclination successful the market. So, investors should beryllium looking for caller buying opportunities to incrementally summation marketplace exposure. And, similar always, beryllium disciplined astir your purchases. Don't pursuit extended stocks and beryllium definite to chopped losses aft merchantability signals.

For regular banal marketplace commentary, beryllium definite to cheque retired IBD's The Big Picture.

Five Best Dow Jones Stocks To Watch Now

Dow Jones Stocks To Buy And Watch: Amex, JPMorgan, Nike

American Express ended Tuesday astir 3% beneath a 178.90 bargain constituent successful a cup with handle, according to IBD MarketSmith illustration analysis. Shares fell 0.3% Wednesday, falling further beneath the caller entry.

Stocks To Buy And Watch: Academy, Adobe, Alphabet, Goldman

Academy Sports + Outdoors is breaking retired past a cup-with-handle's 45.53 bargain point, climbing implicit 5% successful aboriginal trade. Shares are successful the 5% bargain scope that goes up to 47.81.

IBD Leaderboard banal Adobe is forming a cupful with grip that shows a 659.29 bargain point. Shares rallied 1.65% successful midday trade. Per Leaderboard analysis, the caller basal is simply a third-stage pattern, which is simply a later-stage formation. Late-stages bases person little upside and are much apt to neglect than earlier-stage patterns.

IBD SwingTrader banal Alphabet is trading conscionable beneath a caller bargain constituent — a 2,925.18 introduction successful a level basal — according to IBD MarketSmith illustration investigation — amid Wednesday's 0.1% gain. Shares gave up the introduction during Monday's crisp fall.

The IBD Stock Checkup shows that Alphabet stock boasts a 97 out of a cleanable 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of beardown cardinal and method characteristics.

Goldman Sachs is backmost beneath a 420.86 bargain constituent successful a level basal aft the banal mislaid 1.3% Wednesday morning. The apical Dow Jones banal was featured successful this week's Stocks Near A Buy Zone column.

Join IBD experts arsenic they analyse starring stocks successful the caller banal marketplace uptrend connected IBD Live

Tesla Stock

Tesla banal reversed 0.5% little Wednesday, adding to Tuesday's 3% skid. Shares are trading conscionable disconnected Monday's grounds highs.

Last week, the EV giant's shares moved supra a $1 trillion valuation milestone connected quality that Tesla had partnered with Hertz, 1 of the largest car rental companies successful the world, to supply it with 100,000 vehicles by the extremity of 2022. This week, CEO Elon Musk tweeted that nary declaration with Hertz has been signed yet. In response, Hertz responded, saying that deliveries person already started.

The banal traded arsenic precocious arsenic 1,209.75 Monday. TSLA shares are sharply supra a 764.55 bargain constituent successful a cup with handle, arsenic good arsenic earlier entries astatine 700.10 and 730. An alternate introduction astatine 900.50 besides could beryllium identified.

Dow Jones Leaders: Apple, Microsoft

Among the apical Dow Jones stocks, Apple banal is forming a caller cupful basal with a 157.36 bargain point, according to IBD MarketSmith illustration analysis. Shares roseate 0.3% Wednesday, connected gait to adhd to Tuesday's 0.7% rise. The existent weakness looks to beryllium tracing a imaginable handle, which would connection a little bargain constituent astatine 153.27.

Software elephantine Microsoft moved down 0.4% Wednesday, edging little aft Tuesday's 1.1% rise. On Oct. 18, Microsoft broke retired past a flat base's 305.94 bargain point. The 5% bargain portion tops retired astatine 321.24, truthful the banal is present extended. Shares are astatine grounds highs.

Be definite to travel Scott Lehtonen connected Twitter astatine @IBD_SLehtonen for much connected maturation stocks and the Dow Jones Industrial Average.

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