Dow Jones futures extended gains Tuesday morning after a key inflation report — the consumer price index — came out ahead of the market open following Monday’s stock market sell-off. The 10-year Treasury yield turned lower, on pace to snap a seven-day win streak. U.S. oil prices jumped nearly 4% to above $98 a barrel.
Among the Dow Jones leaders, Apple (AAPL) rose 1%, and Microsoft (MSFT) traded up more than 1% in today’s stock market. JPMorgan (JPM) and Goldman Sachs (GS) will report first-quarter results Wednesday and Thursday, respectively. Lastly, Cisco Systems (CSCO) declined more than 2% after Citi downgraded the stock from neutral to sell.
CrowdStrike (CRWD) jumped 3% early Tuesday after a Goldman Sachs upgrade. Twitter (TWTR) gained almost 1%. Electric vehicle giant Tesla (TSLA) rallied almost 2%, looking to rebound from Monday’s sharp losses.
As the stock market’s uptrend struggles, Dow Jones financial leader American Express (AXP) — along with Broadcom (AVGO), IBD Leaderboard watchlist stock Edwards Lifesciences (EW), Raytheon Technologies (RTX) and Shell (SHEL) — are among Tuesday’s top stocks to buy and watch.
Microsoft and Tesla are IBD Leaderboard stocks. Edwards Lifesciences and Raytheon Technologies were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, CPI
Before Tuesday’s open, Dow Jones futures rose 0.6% vs. fair value, and S&P 500 futures moved up 1%. Nasdaq 100 futures traded up 1.7% vs. fair value in early morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.4%, and the SPDR S&P 500 ETF (SPY) was up 0.7% ahead of Tuesday’s open.
The 10-year U.S. Treasury yield extended a win streak to seven sessions Monday, rising to 2.78%. The 10-year Treasury yield climbed to 2.82% Tuesday morning, hitting its highest level since Dec. 2018, before turning negative. Meanwhile, U.S. oil prices jumped 4% Tuesday morning with West Texas Intermediate crude trading above $98 a barrel.
Consumer prices in March rose 1.2% for a year-over-year rate of 8.5%, slightly hotter than Econoday estimates — which is the fastest increase since Dec. 1981. The consumer price index measures the rate of price inflation on common goods. Ahead of the inflation print, the White House said it expects the “March CPI headline inflation (number) to be extraordinarily elevated due to Putin’s price hike.”
Stock Market Rally Continues To Struggle
On Monday, the stock market put in another disappointing performance with the major stock indexes ending with sharp losses. The Nasdaq stumbled further below its 50-day line, which had been a key support level to watch.
Monday’s The Big Picture column commented, “The S&P 500 tumbled 1.7% and closed slightly below the 50-day moving average. The index now tries to find support at that level. But if the Nasdaq is any indication, the composite melted right through its 50-day line Monday after a tentative hold on it the previous two sessions.”
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Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: American Express
Dow Jones financial stock American Express is tracing a cup-with-handle base, showing a 194.45 buy point. Shares slid 3.3% Monday after an analyst downgrade, falling further below the 50-day moving average line. AXP shares traded up 0.5% Tuesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent ascent, the RS line is nearing its old highs, but does have some work cut out for it ahead of a potential breakout. The RS line measures a stock’s price performance vs. the S&P 500. The RS line should hit a new high on the breakout day or shortly thereafter to confirm the strength of stock’s breakout.
Four Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Broadcom, Edwards, Raytheon, Shell
Broadcom fell another 1.1% Monday, as the chip stock moved further below an early entry at 614.74. Shares are closing in on the 7%-8% loss trigger. The stock also gave up support at it 50-day line in recent sessions. Meanwhile, shares have put in another buy point, a handle entry at 645.41. AVGO shares rose around 1% Tuesday morning.
IBD Leaderboard watchlist stock Edwards Lifesciences continues to advance up the right side of a cup base that shows a 131.83 buy point. Shares slid almost 2% Monday. Monday’s weakness is likely the start of a handle that would lower the risk-optimal entry to 125.21. EW shares remained flat Tuesday morning.
Defense contractor Raytheon Technologies is within striking distance of a flat base’s 104.44 buy point. Shares rallied 1.7% Monday, trading just 2% off the latest entry. RTX shares were unchanged Tuesday morning.
Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is just below a flat base’s 56.23 buy point after Monday’s 1.4% fall. SHEL shares were up more than 1% Tuesday morning.
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Tesla stock rallied almost 2% early Tuesday, looking to rebound from Monday’s 4.8% decline. Shares of the EV giant finished Monday about 15% away from a cup-with-handle’s 1,152.97 buy point.
The stock traded as high as 1,243.49 on Nov. 4. and ended Monday about 22% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares moved down 2.55% Monday, further below a 176.75 buy point in a double-bottom base. The stock is close to triggering the 7%-8% loss-cutting sell rule. Along with that double-bottom entry, a handle buy point is also in play at 179.71. On the downside, AAPL stock gave up its 50-day support level Monday, indicating further weakness is likely. The stock was up 1% Tuesday morning.
Software leader Microsoft tumbled 3.9% Monday, as shares fall further below their 50-and 200-day lines. The stock is nearly 20% off its 52-week high. MSFT shares gained more than 2% early Tuesday.
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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The post Dow Jones Futures Climb After Key Inflation Report As White House Warned Of ‘Extraordinarily Elevated’ Inflation appeared first on Investor’s Business Daily.