Dow Jones futures rose modestly Wednesday morning after a cooler-than-expected wholesale inflation report in the form of the Labor Department’s Producer Price Index. And oil prices jabbed to a seven-week high, while Tesla stock looked to add to Tuesday’s surge and raced higher in early morning trade.
The PPI fell 0.5% in December, its biggest monthly drop since April 2020 and much larger than the expected 0.1% decline, per Econoday estimates. Year over year, the PPI increased 6.2%, short of the 6.8% estimate.
Meanwhile, retail sales fell 1.1% in December, missing estimates that called for a 0.8% drop.
Interactive Brokers (IBKR) and United Airlines (UAL) reported earnings late Tuesday, while Charles Schwab (SCHW) earnings came out early Wednesday.
IBKR stock rallied 4% in premarket trade, moving closer to a double-bottom’s 80.95 buy point. United Airlines jumped 4% after beating earnings and sales targets. Schwab shares lost 4% after an earnings miss.
Stock Market Today
Mobileye Global (MBLY) climbed 2% after Deutsche Bank started coverage with a buy rating and a 48 price target. Dow Jones stock IBM (IBM) dropped more than 2% after a Morgan Stanley downgrade from overweight to equal weight, with a lowered price target of 148.
Biotech Moderna (MRNA) jetted 7.5% higher after announcing late Tuesday an experimental vaccine proved 84% effective against respiratory syncytial virus, or RSV, in older adults.
Electric-vehicle leader Tesla (TSLA) traded up 3.5% Wednesday, as Chief Executive Elon Musk goes to trial over his 2018 tweets that discussed taking the company private. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both higher ahead of today’s stock market open.
Deere (DE), IBD Leaderboard stock Fluor (FLR), Insulet (PODD) and recent IBD Stock Of The Day Medpace (MEDP) — as well as Dow Jones names Amgen (AMGN), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market testing the strength of a new rally.
Fluor and Medpace are IBD Leaderboard stocks.
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Dow Jones Today: Oil Prices, Treasury Yields
Before Wednesday’s opening bell, Dow Jones futures moved up 0.1% vs. fair value. S&P 500 futures rose 0.4%. And tech-heavy Nasdaq 100 futures gained 0.6%, with Moderna and Tesla leading the index in early trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) traded up 0.4% early Wednesday.
The 10-year Treasury yield dropped to 3.45% Wednesday morning, on pace to snap a two-day win streak.
Oil prices rose again Wednesday, lifting West Texas Intermediate futures to $82 a barrel, as the International Energy Agency said that China’s Covid reopening will lead to record oil demand. The near-2% gain puts WTI futures at their highest level since early December. WTI also is moving further above its 50-day moving average line, after settling above that line on Tuesday for the first time since mid-November.
Stock Market Rally
On Tuesday, the Dow Jones Industrial Average sold off 1.1%, and the S&P 500 lost 0.2%. The Nasdaq composite moved up 0.1%, extending a win streak to seven sessions.
Tuesday’s The Big Picture column cautioned, “However, major benchmarks continue to struggle at or near major moving averages, and resolution could take time. The best scenario: Instruments build bases at new support that act as springboards for strong price action into the second quarter.”
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Amgen, Chevron, Walmart
Drug giant Amgen is shaping a flat base that has a 296.77 buy point, according to IBD MarketSmith pattern recognition. First, Amgen shares must retake their 50-day line, which is a key resistance level to watch. AMGN shares dropped 0.5% early Wednesday.
Energy giant Chevron broke above stout resistance at its 50-day line during Tuesday’s 1.65% rally, as it moves closer to a flat base’s 189.78 buy point. Chevron’s fourth-quarter earnings are due Jan 27. CVX shares inched lower Wednesday morning, despite the rise in oil prices.
CVX stock shows a solid 93 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Discount retailer Walmart also is seeing resistance at its 50-day line amid Tuesday’s 0.6% loss. Shares are building a cup-with-handle base that has a 154.74 buy point. Walmart shares edged higher Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Deere, Fluor, Insulet, Medpace
Deere is approaching a 448.50 buy point in flat base. Shares have their eye on the buy point as they rebound from a test of 50-day support and are just 2% away from the entry. Deere shares added 0.4% Wednesday morning.
IBD Leaderboard stock Fluor is trying to break out past a flat base’s 36.16 buy point, but shares gave up their buy point during Tuesday’s 3.4% drop. If shares retake that entry, the 5% buy area tops out at 37.97. FLR stock shed 0.4% early Wednesday.
Recent IBD Stock Of The Day, Insulet, is nearing a double-bottom’s 316.54 buy point despite Tuesday’s 2.3% fall. PODD stock was unchanged Wednesday.
Medpace inched higher Wednesday, edging closer to a consolidation’s 235.82 buy point. Last week, shares moved above an early entry at 220.09. The company’s earnings results are expected on Feb. 13. Medpace shares jumped 1.4% Tuesday.
Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today’s stock market, including three Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Base|
|Walmart||(WMT)||154.74||Cup with handle|
Source: IBD Data As Of Jan. 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock surged 7.4% Tuesday, closing at its highest level since Dec. 21. Despite their recent rebound, shares remain sharply below their 50- and 200-day lines. In early January, shares hit a 52-week low at 101.81. Tesla stock closed Friday about 66% off its 52-week high. Tesla earnings are due out Jan. 25.
Shares of the EV giant looked to Tuesday’s gains, trading up 3.9% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 0.9% Tuesday, closing at their highest level since Dec. 15. The stock remains around 24% off its 52-week high. Apple will report its quarterly earnings on Feb. 2. AAPL stock traded up 0.7% Wednesday.
Microsoft stock rose another 0.5% Tuesday, extending a win streak to seven trading days. The software giant is about 25% off its 52-week high. MSFT earnings are due out Jan. 24. Shares traded 0.4% higher early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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