The Dow Jones Industrial Average fell 0.4% at closing bell on Wednesday after the Fed minutes for the June meeting were released. Other index also fell modestly.
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Fed policymakers believed that “in discussing the policy outlook, all participants continued to anticipate that, with inflation still well above the Committee’s 2% goal and the labor market remaining very tight, maintaining a restrictive stance for monetary policy would be appropriate to achieve the Committee’s objectives.”
Some Fed officials favored raising rates at the June meeting, when the central bank decided to leave rates unchanged.
The Dow Jones average and other indexes fell earlier on news of a slower China economic recovery. U.S. traded Chinese stocks were broadly lower.
The S&P 500 fell 0.2%, while the Nasdaq rose from the day’s low but ended 0.2% lower as well. Volume on the NYSE and Nasdaq was higher, according to preliminary data.
The small-cap Russell 2000 fell 1.3% and Innovator IBD 50 ETF (FFTY) declined over 0.8%.
New U.S. orders for manufactured goods rose to $578 billion and were up for the fifth month out of the last six.
Crude oil jumped more than 3% to trade at $71.99 a barrel. The yield on the benchmark 10-year Treasury note rose 9 basis points to 3.94%.
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 were nearly flat Wednesday. The analysts have an outperform rating on the stock and a 375 price target.
Rivian (RIVN) rose in strong volume on bullish comments from analysts. RIVN added to Monday’s 17% gains and attempted 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. Needham raised the price target on Rivian, too.
Another Tesla (TSLA) rival, Xpeng (XPEV), rose nearly 6% in strong volume after the company said its G6 sport utility vehicle would drive higher demand in the second half of the year.
General Motors (GM) rose 1.2% as it forms a cup base with a 43.63 entry. Second-quarter U.S. deliveries rose 18.8%. EV sales showed strong growth from the first quarter.
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 1% Wednesday. The EV giant is on the IBD Leaderboard.
Stocks Moving Today
IBD 50 stock Allegro MicroSystems (ALGM) eased 1.5% and is 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.
Netflix (NFLX) gained 1% 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-taking zone.
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