Dow Jones Awaits Fed Minutes; Rivals Rally As Tesla Makes Fresh Price Cut

The Dow Jones Industrial Average fell 0.4% to a session low at 1:30 p.m. ET on Wednesday, just before the Fed’s release of its June meeting minutes. The index fell on news of a slower China economic recovery.

The Caixin/S&P Global services purchasing managers’ index showed that Chinese services grew at the slowest pace in five months in June, due to lower demand.

New orders for manufactured goods rose to $578 billion and were up for the fifth month in the last six months.

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The S&P 500 also fell, by 0.2% at the hour, while the Nasdaq rose from the day’s low, losing 0.1%.

Volume on the NYSE and Nasdaq was higher, compared with the same time on Monday.

Crude oil jumped almost 3% to trade at $71.67 a barrel.

The yield on the benchmark 10-year Treasury note rose 6 basis points to 3.92%.

The small-cap Russell 2000 and Innovator IBD 50 ETF (FFTY) declined 1%.

Dow Jones Stock In Focus

Wedbush analysts see Dow Jones leader Microsoft (MSFT) hitting a $3 trillion market cap as early as 2024 after Apple (AAPL) achieved that milestone last week. MSFT shares rose above their 10-day moving average line on Wednesday. The analysts have an outperform rating on the stock and a $375 price target.

Stocks Moving Today

Rivian (RIVN) rose in strong volume  after news that Amazon (AMZN)would launch the first vans of the EV company in Germany. RIVN added to Monday’s 17% gains on Wednesday and is attempting to take its 200-day line. Rivian also got an analyst upgrade from DA Davidson to neutral with an 18 price target, up from underperform and a price target of 11.

Another Tesla (TSLA) rival, Xpeng (XPEV), rose, also in strong volume, after the company said its G6 sport utility vehicle would drive higher demand in the second half of the year.

On Wednesday, Tesla announced more price cuts for its Model 3 and Y in Japan in the mid-single digits. Tesla earnings are due on July 19, when the impact of price cuts on profit margins will be seen, despite record second-quarter deliveries. Tesla shares rose slightly. The EV giant is on the IBD Leaderboard.

IBD 50 stock Allegro MicroSystems (ALGM) eased in a cup base with a 48.72 entry. If a handle forms, it could offer a lower entry at 46.42, according to IBD MarketSmith chart analysis.

Also outside Dow Jones, Netflix (NFLX) gained after Goldman Sachs upgraded the streaming company to neutral from sell and increased the price target to 400, from 230. Shares are above a profit zone.

Please follow VRamakrishnan on Twitter for more news on the stock market today.

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