The Dow Jones Industrial Average briefly rose more than 150 points on Wednesday on colder-than-expected inflation data, with the release of the Consumer Price Index. Meanwhile, the minutes of the latest Federal Reserve policy meeting will be released in the afternoon.
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The Labor Department’s March CPI report showed inflation rose 0.1% for the month, less than Wall Street’s expected 0.3% monthly increase. Year-over-year, the CPI rose 5%, below the estimated 5.2%. Core prices, which exclude food and energy, rose 0.4% for the month, with a 5.6% annual gain, both in line with Wall Street estimates.
Meanwhile, Q1 earnings season looms as JPMorgan Chase (JPM), Citigroup (C), fargo wells (WFC) and PNC finances (PNC) will kick off bank earnings on Friday. Further, delta airlines (DAL) reports on Thursday and UnitedHealth (UNH) earnings come out on Friday.
stock market today
american airlines (AAL) declined nearly 5% after providing a first-quarter update on its earnings and sales. electric vehicle giant tesla (TSLA) rose 0.6% in morning trading.
Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) went down after the stock market opened today.
five down (FIVE), IBD Leaderboard Watch List Stocks floor and decoration (FND), service now (Now and Vertex Pharmaceuticals (VRTX), as well as Dow Jones stocks Boeing (LICENSED IN LETTERS), cisco systems (CSCO) and Visa (V) — are among the top stocks to buy and watch with the current market strength.
Floor & Decor and Visa were featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
After the opening bell on Wednesday, the Dow Jones Industrial Average rose 0.4% and the S&P 500 added 0.2%. The Nasdaq technology composite pulled back slightly lower after giving up solid gains in morning action.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) advanced 0.6%, while the SPDR S&P 500 ETF (SPY) gained 0.5% early Wednesday.
The 10-year US Treasury yield on Wednesday traded lower as low as 3.37%. Last week, the 10-year yield hit its lowest level since mid-September, but it’s picking up this week.
US oil prices added to gains on Tuesday, rising more than 1% in early morning trading on Wednesday. West Texas Intermediate futures moved above $82 a barrel. Weekly oil inventories from the Energy Information Administration are out at 10:30 am ET.
stock rally
On Tuesday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 inched lower. The high-tech Nasdaq Composite fell 0.4%.
Tuesday’s Big Picture column commented: “Selling was never strong on the Nasdaq, which closed down 0.4%. Broad-watchers liked the fact that winners had a slight edge over losers. But higher volume on the Nasdaq gave the index its second day of distribution.”
Now is an important time to read IBD’s The Big Picture column with the stock market in an uptrend.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Boeing, Cisco Systems, Visa
Dow Jones leader Boeing is nearing a flat-based buy point of 221.43, according to pattern recognition from IBD MarketSmith. Shares were up 0.6% on Wednesday, just 5% off last entry.
Cisco Systems fell further below the buy point of 51.84 from a flat base amid a 1.4% decline on Tuesday. CSCO shares led the entry on March 31. Shares gained 0.3% on Wednesday morning.
Visa shares neared the buy point of 234.40 of a base rate, rising 0.9% on Tuesday. V’s shares rose 1.2% early Wednesday.
Top 4 Growth Stocks to Watch for stock rally
Top Stocks to Buy and Watch: Five Below, Floor & Decor, ServiceNow, Vertex
Five Below added 0.2% on Tuesday, adding to Monday’s breakout gains beyond a buy point of 212.66 on a flat basis. Stocks are in the 5% buy area rising to 223.29. The stock rose 1.1% on Wednesday morning.
background: On March 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed 2022 with superior profit and revenue. For the fourth quarter, Five Below earnings rose 23% to $3.07 per share, ending a three-quarter series of year-over-year declines.
Shares on the IBD Leaderboard Floor & Decor watch list moved within striking distance of the 99.47 buy point of a mug with a handle. Shares were up 1% early Wednesday, beating the latest entry.
background: Floor & Decor operates 191 warehouse-style stores and six design studios in 36 states. Sells products for tile, wood, laminate, vinyl, and natural stone flooring. It also sells decorative accessories. Earnings are expected to fall 2% this year before rising to 27% in 2024 and 24% in 2025.
The IBD SwingTrader ServiceNow Pick continues to move higher on the right side of a cup base with a buy point of 494.72. A potential handle is one day away from forming, which will show a buy point of 482.43. NOW shares gained 1.8% on Wednesday morning.
Background: ServiceNow software tracks and manages the services provided by information technology departments. In addition, its self-service technology portal allows workers to access administrative and workflow tools.
Vertex Pharmaceuticals continues to trade just below the 325.29 buy point of a cup basis. VRTX shares were down 0.1% on Wednesday morning.
Background: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease, and type 1 diabetes.
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Stocks to Buy and Watch on the Stock Market Rally
Here are the top four stocks to watch in today’s stock market, including two Dow Jones leaders.
| Company Name | Symbol | correct point of purchase | Point of Purchase Type |
|---|---|---|---|
| service now | (NOW) | 494.72 | cup bottom |
| Nike | (NKE) | 131.41 | flat base |
| Visa | (V) | 234.40 | cup bottom |
| cisco systems | (CSCO) | 51.84 | flat base |
Source: EII data as of April 11, 2023
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla shares rallied 1.2% on Tuesday, snapping a five-day losing streak. Last week, stocks triggered the 7% to 8% loss rule from a buy point at 200.76 in a cup with a handle. And they fell sharply below their 50-day line, a support level. The stock closed Monday down 49% from its 52-week high.
TSLA shares rose 0.6% on Wednesday morning, looking to add to Tuesday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.8% on Tuesday, extending Monday’s losses. AAPL shares were trading 0.1% lower early Wednesday.
Microsoft shares remain above the buy point of 276.86 on a flat basis, despite a 2.3% selloff on Tuesday. The 5% buy area goes from the buy point to 290.70. MSFT shares fell 0.2% in Wednesday morning stock after Wedbush raised his price target on the shares to 315 from 290, while maintaining an upper rating.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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