Dow Jones futures, S&P 500 futures, and Nasdaq futures saw a rise on Wednesday morning after the release of key economic data. The Commerce Department reported that new durable goods orders in August rose 0.2% compared to July’s sharp 5.2% drop, exceeding expectations of a 0.3% decline. Excluding volatile transportation, orders rose 0.4%, surpassing expectations. However, retail giant Costco (COST) experienced a sell-off despite reporting better-than-expected earnings and sales results.
In the stock market, companies like Tesla (TSLA), Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT) saw positive movement in their stock prices. Other stocks to watch in the ongoing market correction include Airbnb (ABNB), DraftKings (DKNG), Meta Platforms (META), Uber Technologies (UBER), Amgen (AMGN), and Caterpillar (CAT). The market correction has raised concerns about higher interest rates and inflation, but fears of a recession have diminished.
Amgen and Caterpillar, both Dow Jones stocks, showed positive signs. Amgen saw a 0.4% increase in stock price as it surpasses a buy point, while Caterpillar slid 1.7% on Tuesday but gained 0.5% on Wednesday morning as it forms a flat base. Other stocks like Airbnb, DraftKings, Meta, and Uber continue to consolidate and build bases.
Tesla stock declined 1.2% on Tuesday, remaining below its 50-day line. Analysts predict that Tesla’s third-quarter deliveries will fall short of the record-breaking second-quarter figures. However, TSLA stock rose 0.4% on Wednesday morning, looking to recover losses. Apple and Microsoft stocks also saw losses on Tuesday but recorded gains of 0.5% on Wednesday morning.
Overall, the stock market is in a correction phase, and investors should pay attention to IBD’s The Big Picture column to understand the market outlook and learn how to handle market weakness.