Dow Jones Futures Surge 300 Points On Cool Inflation Report; Tesla Stock Rallies On Price Hikes
[ad_1]
Futures on the Dow Jones Industrial Average surged 300 points Tuesday, as Wall Street cheered a cooler-than-expected report on inflation. Meanwhile, Tesla stock raced higher after the electric-vehicle giant hiked the prices of some of its cars in China.
X
October’s Consumer Price Index was unchanged from September, cooler than the expected 0.1% monthly increase. Annual consumer prices increased 3.2%, below the 3.3% estimate. Core prices, excluding food and energy, rose 0.2% on the month, with a 4% annual rise. Both readings were below estimates.
Ahead of Tuesday’s opening bell, all three major indexes shot up on the inflation news. Dow Jones futures climbed 1.1% vs. fair value, and S&P 500 futures moved up 1.4%. Tech-heavy Nasdaq 100 futures gained 1.8% in morning action.
Tesla (TSLA) rallied nearly 5% in morning trades after the company raised the prices of its China-made Model 3 and Model Y cars. Tesla increased the price of its Model 3 basic edition by 1,500 yuan, or 0.6%. The Model Y entry-level version was upped by 2,500 yuan, or 0.95%.
Key earnings movers for the session include Home Depot (HD), On Holdings (ONON), Tencent Music (TME) and Vipshop (VIPS).
Home Depot shares climbed more than 2% in premarket trade, while On Holdings cut losses to 2%. Tencent Music rose 2%, as Vipshop gained more than 2% in early action.
Dow Jones Today: Oil Prices, Treasury Yields
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.8%, while the SPDR S&P 500 ETF (SPY) moved up 1.1% early Tuesday.
The yield on the 10-year U.S. Treasury bond sank to 4.5% after the CPI inflation report. On Monday, the benchmark had settled at 4.63%.
Oil prices paused after Monday’s gains, as West Texas Intermediate futures edged lower, trading just above $78 a barrel. WTI prices are bouncing back from their lowest levels since late July.
Stock Market Rally
On Monday, the Dow Jones index rose 0.2%, while the S&P 500 moved down 0.1%. The Nasdaq lost 0.2%.
Monday’s Big Picture column commented, “Even if the current interest-rate hiking cycle looks to be coming to a close, the potential for more inflation and the knock-on effects to Federal Reserve policy continue to weigh on the stock market.”
Now is an important time to read IBD’s The Big Picture column after the recent gains. Be sure to read how to invest during the early stages of a stock market uptrend.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Stock Market Today: Best Stocks To Watch
IBD Leaderboard stock Amazon (AMZN), along with MercadoLibre (MELI), ServiceNow (NOW) and Uber Technologies (UBER) — as well as Dow Jones stocks Intel (INTC), Walmart (WMT) and UnitedHealth (UNH) — are among the best stocks to watch in the current market rally.
Intel was featured in this Stocks Near A Buy Zone column. Amazon and NOW stock are members of IBD Leaderboard.
Dow Jones Stocks To Watch
Chip giant Intel is in buy range past a 37.22 buy point in a double-bottom base, according to IBD MarketSmith chart analysis. Intel stock dropped 1.6% Monday, still above the latest entry. INTC rose 2.2% early Tuesday.
Dow Jones retail titan Walmart is in buy range past a 165.85 buy point, according to IBD MarketSmith chart analysis. Shares gained 0.9% Monday, further past the buy trigger. WMT stock rose 0.4% Tuesday morning.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock gained 0.1% Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: MELI Adds Handle
Amazon made a bullish move back above its 50-day moving average line in recent weeks, topping an early entry at 134.48. Now, AMZN stock is within striking distance of a cup base’s 145.86 buy point, while a handle could eventually form. Shares moved up 1.9% Tuesday.
MercadoLibre eased last week, adding a handle to its forming cup base. That takes the buy point to 1,398.59, according to IBD MarketSmith pattern recognition. MELI stock was up 3.8% Tuesday morning.
ServiceNow is barely out of buy range past a 607.90 entry in a double bottom. The 5% buy zone went up to 638.30. The pattern also may be interpreted as a flat base with a 614.36 buy point. NOW stock climbed 2.4% Tuesday.
Uber is now extended above a buy trigger at 49.19, a double-bottom entry, amid Monday’s 1.3% advance. Uber stock added 1.8% Tuesday morning.
Best Stocks In Today’s Stock Market Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | (AMZN) | 134.48 | Double bottom |
| UnitedHealth | (UNH) | 546.78 | Handle entry |
| DraftKings | (DKNG) | 31.10 | Trend line |
| Uber Technologies | (UBER) | 49.19 | Double bottom |
Source: IBD Data As Of Nov. 13, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called “Magnificent Seven” stocks, Tesla traded up 4.6% early Tuesday, while Nvidia (NVDA) gained 2.3%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded higher ahead of today’s stock market open.
Graphics-chip giant Nvidia is in buy range past a double-bottom’s 476.09 entry after solid gains in recent sessions.
Tesla stock rallied more than 4% Monday, adding to Friday’s gains. Shares are trying to overcome stout resistance at the long-term 200-day moving average. Shares are around 25% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple slipped 0.9% Monday, holding above an early entry at 182.34. Shares continue to trace a consolidation that has a 198.23 buy point. Apple shares advanced 1.6% Tuesday.
Microsoft stock moved down 0.8% Monday, giving up a cup base’s 366.78 buy point. In recent weeks, shares rose above an early buy trigger at 346.20. MSFT stock climbed 1.4% Tuesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
[ad_2]
Source link
