Dow Jones Futures Rise On Weak ADP Jobs Data; Apple Slides On Downgrade

Dow Jones futures rose Wednesday morning, along with S&P 500 futures and Nasdaq futures, after the early release of ADP’s jobs report. Meanwhile, Apple stock fell on an analyst downgrade.


The ADP employment report showed that payrolls grew by 89,000 in September, below estimates for payroll growth of 150,000. That is slower than August’s growth of 177,000. The ADP report is a precursor to Friday’s September jobs report from the Labor Department.

Friday’s jobs report is the highlight of this week’s economic reports. Wall Street expects moderate strength, with 150,000 new jobs. The jobless rate is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.

Dow Jones tech titan Apple (AAPL) slid nearly 1% after KeyBanc downgraded the stock from overweight to sector weight, removing the previous price target of 200. The analyst firm said Apple’s new iPhone 15 sales could be soft over the near term.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) rose a fraction Wednesday morning, while Nvidia (NVDA) edged higher. Dow Jones tech icon Microsoft (IBD) inched higher ahead of today’s stock market open.

IBD Leaderboard stock Arista Networks (ANET), Duolingo (DUOL), DraftKings (DKNG), and IBD SwingTrader stock Zscaler (ZS) — as well as Dow Jones stocks Caterpillar (CAT) and Chevron (CVX) — are among the stocks to watch in the ongoing stock market correction.

Arista is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Cybersecurity leader Zscaler is an IBD SwingTrader stock.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Wednesday’s opening bell, Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures gained 0.4%. Tech-heavy Nasdaq 100 futures moved up 0.5% vs. fair value in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5%, while the SPDR S&P 500 ETF (SPY) gained 0.3% early Wednesday.

Early action also showed the 10-year U.S. Treasury yield dipping to 4.73%, easing from Tuesday’s long-term highs. Overnight, the 10-year yield hit 4.88%.

Oil prices extended their recent declines, falling nearly 2% Wednesday morning. West Texas Intermediate futures traded below $88 a barrel. The OPEC+ meeting started Wednesday morning, with the group expected to hold its current oil output. Meanwhile, Saudi Arabia confirmed it will continue its one million barrel-per-day supply cut until the end of the year.

Stock Market Correction

On Tuesday, the Dow Jones Industrial Average sold off 1.3%, while the S&P 500 declined 1.4%. The tech-heavy Nasdaq composite lost nearly 2%.

Tuesday’s Big Picture column commented, “The Nasdaq composite slumped 1.9% and looks poised for another test of the 13,000 level. The Nasdaq undercut 13,000 last week but rallied off lows in higher volume, resulting in the first day of a rally attempt for the index. As long as the Sept. 27 low holds, the Nasdaq’s rally attempt is still intact.”

Wednesday is Day 6 of a rally attempt on the Nasdaq, so a follow-through day is still possible despite Tuesday’s losses. A follow-through day signals the start of a new uptrend.

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.

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Dow Jones Stocks: Caterpillar, Chevron

Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock slipped 1% Tuesday, further below the 50-day line. Shares edged higher early Wednesday.

Dow Jones oil and gas giant Chevron rose 0.2% Tuesday. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point, according to IBD MarketSmith chart analysis. Chevron shares dropped 0.9% Wednesday morning, falling in sync with oil prices.

4 Top Growth Stocks To Buy And Watch In The Stock Market Correction

Stocks To Watch: Arista, DraftKings, Duolingo, Zscaler

IBD Leaderboard stock Arista declined 1.55% Tuesday, still holding above the key 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash. ANET stock rose 0.1% early Wednesday.

DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch. DKNG stock gained 0.3% in premarket trades Wednesday.

IPO Leader Duolingo skidded 4.5% Tuesday, closing squarely below its latest buy point at 167.35. The new entry is the result of a handle forming on a double-bottom base. DUOL stock lost 0.1% early Wednesday.

Recent IBD Stock Of The Day Zscaler dived nearly 6% Tuesday, ending a nice rebound from its key 50-day line. ZS stock lost a fraction Wednesday morning.

Learn How To Time The Market With IBD’s ETF Market Strategy

Best Stocks In Today’s Stock Market Action

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Company NameSymbolCorrect Buy PointType Of Buy Point
Uber Technologies (UBER)143.63Flat base
Caterpillar (CAT)293.88Flat base
Duolingo (DUOL)167.53Double bottom with handle
DraftKings (DKNG)32.65Cup with handle
Source: IBD Data As Of Oct. 3, 2023

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla stock skidded 2% Tuesday, snapping a three-day win streak. Shares continue to see stout resistance around their 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 13% away from that entry.

Shares rose 0.4% early Wednesday.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple moved down 0.8% Tuesday, ending a three-day rally. Shares are trying to rebound from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September’s losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares dropped 0.9% early Wednesday after the analyst downgrade.

Microsoft shares sold off 2.6% Tuesday, heading back near their recent lows. And on Wednesday morning, MSFT stock rose a fraction.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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