The Dow Jones Industrial Average fell over 400 points in early trading on Wednesday, reversing after a two-day rally started the fourth quarter on an upbeat note. The Nasdaq lost over 1 % in the first hour while the S&P 500 declined nearly 1%, almost matching the Dow’s 0.8% tumble.
X
The Russell 2000 small-cap index declined as well, shedding 1.5%.
Yield on the benchmark 10-year Treasury note reclaimed the 3.7% level first reached in September.
Crude oil rose to $86.74 per barrel. ahead of Wednesday’s OPEC+ meeting, when ministers are expected to announce the biggest slash in oil output since 2020.
Volume on the NYSE and the Nasdaq was lower compared to the opening hour on Tuesday.
Private jobs increased by 208,000, below three-month and year-over-year averages, as per the September ADP Employment Change. August numbers were revised to 185,000. The trade, transportation and utilities group posted a solid gain of 147,000 jobs.
According to Peter Essele, head of portfolio management at Commonwealth Financial Network, Tuesday’s JOLT numbers and the below-average increase in ADP employment points to a softening labor market.
Outside Dow Jones: Monday Movers
Ford (F) has slipped over 1% in morning action, despite an upgrade to overweight from Morgan Stanley.
Goldman Sachs (GS) is down nearly 3% after a downgrade to underweight from Atlantic Equities. The Dow Jones stock has a $290 price target. Atlantic also downgraded JP Morgan (JPM) to neutral with an $85 price target. JPM has fallen over 2% in the first hour.
Bionano Genomics (BNGO) surged 13% on Tuesday after publishing a study on optical genome mapping for liver cancer diagnosis. Shares have added another 2.5% so far this morning.
Healthcare stocks Signify Health (SGFY) and Molina Healthcare (MOL) are in flat bases. Signify is just below its buy point of 29.98 while Molina is also nearing an entry point at 361.35.
Murphy Oil (MUR) is also nearing an entry point at 41.60 in a cup-with-handle base while Denbury (DEN) is in a buy zone with a buy point of 88.12.
ConocoPhilips (COP) broke out from its buy point of 115.57 in a cup-with-handle base.
The company has posted a solid growth record, with revenue growing over 100% in the most recent quarter. Its 98/98 Composite/Relative Strength Ratings are nearly ideal.
Vertex Pharmaceutical (VRTX) is in a flat base and 2% below its buy point of 300.74. Paylocity (PCTY) broke past its 50-day line in a flat base with a buy point of 276.98.
Dow Jones stocks Walmart (WMT), Merck[ticker symb=MRK] and Chevron (CVX) surged past their 50-day lines on Tuesday. All three are testing that critical support level in today’s action.
Tesla CEO Twitter Plans
Tesla (TSLA) CEO Elon Musk sees potential for Twitter as a mini-Internet and fintech service.
On Tuesday, news that Musk had agreed to acquire Twitter (TWTR) for the original $54.20 per-share asking price sent shares of the social media giant skyrocketing. They are down 2% in so far on Wednesday while TSLA shares have fallen nearly 4%.
Earlier, UBS maintained its buy rating on Tesla, reiterating a $367 price target after the EV automaker delivered 343,830 vehicles, missing quarterly estimates of 364,000. However, production met views of 365,923 vehicles.
Elsewhere, recent IPO stock Rivian (RIVN) surged over 13% after confirming its 2o22 production target of 25,000 vehicles. Shares are paring gains on Wednesday, down over 3%.
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Read More: Dow Jones Slips; OPEC Meeting On Deck; Tesla CEO Musk Sees ‘X Everything App’ for Twitter