Dow Jones futures rose 175 points Wednesday morning, as inflation rose 7% over the past year to its highest level since 1982. Jefferies Financial (JEF) slid on weak sales results ahead of the stock market open, while KB Home (KBH) will report after the close.
X
Among the Dow Jones leaders, Apple (AAPL) rose 0.4% premarket Wednesday, bucking for a fourth straight advance. Microsoft (MSFT) moved up 0.5% in today’s stock market. Also among the Dow 30, financial leaders Goldman Sachs (GS) and JPMorgan Chase (JPM) are near new buy points. Both stocks inched higher in early trade.
Electric-vehicle leader Tesla (TSLA) traded slightly higher premarket Wednesday. EV truck rival Rivian (RIVN) gained 1%. Lucid Group (LCID) dropped more than 1%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were higher.
Among Wednesday’s top stocks to buy and watch, Commercial Metals (CMC), Diamondback Energy (FANG), SVB Financial (SIVB) and Zim Integrated Shipping Services (ZIM) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Commercial Metals and SVB Financial featured in this week’s Stocks Near A Buy Zone column. Zim was Tuesday’s IBD Stock Of The Day.
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
SIGN UP NOW!
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
- Financial Advisor Update
- How To Invest
- Market Prep
- Tech Report
Please enter a valid email address Please select a newsletter GO
Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use
x
Thank You!
You will now receive IBD Newsletters
ALL DONE!
Something Went Wrong!
Please contact customer service
CLOSE
Dow Jones Today: Key Inflation Report
Ahead of the stock market open Wednesday, Dow Jones futures moved up 0.5% vs. fair value, while S&P 500 futures gained 0.5%. Nasdaq 100 futures were up 0.6% vs. fair value. Small caps lagged, with Russell 2000 futures slipping a fraction into the red.
Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.2% and the SPDR S&P 500 ETF (SPY) traded up 0.1% premarket Wednesday.
The 10-year Treasury yield traded down to 1.73% in the wake of Wednesday’s inflation data. On Tuesday, the 10-year Treasury yield dropped below 1.75%.
The Labor Department reported the consumer-price index — which measures what consumers pay for goods and services — at 8:30 a.m. ET. The CPI increased 7.0% in December from the same month a year ago, barely better than estimates for a 7.1% rise, per Econoday estimates. That marked its hottest reading since June 1982. On a month-over-month basis, the CPI climbed 0.5% in December, slightly higher than the 0.4% expected climb.
Stock Market ETF Strategy And How To Invest
Stock Market Rally Rebounds
The stock market posted a positive performance Tuesday, as the major stock indexes rallied sharply. The Nasdaq rebounded from support at its long-term 200-day line. The S&P 500 snapped a five-day losing streak and reclaimed support at its key 50-day moving average.
Tuesday’s The Big Picture commented: “In contrast, the Nasdaq has now fallen more than 10% off its peak. This makes for a healthy pullback, on the order of what IBD likes to call an intermediate-level correction. It’s not as deep as a bear market, but not as light as a mild pullback on the order of a 4% to 9% decline.”
Following Tuesday’s stock market action, it’s an important time to read IBD’s The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Stock Market Earnings: Jefferies, KB Home
Investment banker Jefferies reported earnings ahead of Wednesday’s open, sparking a 3.3% decline in premarket trade. The company topped earnings estimates, but reported weaker-than-expected sales results. JEF stock is climbing the right side of a cup base below a 44.57 buy point.
Real estate developer KB Home will report late Wednesday. Wall Street expects the builder to earn $1.77 a share on sales of $1.7 billion. KBH stock closed Tuesday below its 50-day line and about 20% off its 52-week high. Homebuilders have been under selling pressure recently as mortgage rates track rising bond yields.
Dow Jones Stocks To Buy And Watch: Goldman Sachs, JPMorgan
Dow Jones stock Goldman Sachs rallied 1% Tuesday, ending just above the 50-day line. Shares are tracing a cup-with-handle base with a 412.76 buy point, according to IBD MarketSmith chart analysis. Shares were narrowly higher premarket Wednesday.
JPMorgan shows a 173.06 buy point in a cup base after retaking the 50-day line in a 5.6% rally last week. Shares edged higher premarket Wednesday.
Three Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Commercial Metals, Diamondback, SVB Financial, Zim
IBD 50 stock Commercial Metals remains just below a 36.96 buy point from a cup base, according to IBD MarketSmith chart analysis, after Tuesday’s 0.4% rise. Shares were flat premarket Wednesday.
Oil producer Diamondback Energy moved slightly out of buy range past a 117.81 buy point, following Tuesday’s 2.5% gain. The 5% buy area topped out at 123.70. Bullishly, the stock’s RS line hit a new high on the breakout day, boosting the energy stock’s cred as a potential market leader. FANG stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares inched higher premarket Wednesday.
SVB Financial is tracing a cup base with a 763.32 buy point. Shares could be adding a handle this week, but it’s a bit too early to be considered proper. If the handle finishes, the new buy point will be 746.80. Shares advanced 3.1% Tuesday, finding support at their 50-day moving average line. Shares were unchanged premarket Wednesday.
Shipping leader and Tuesday’s IBD Stock Of The Day, Zim, broke out past a cup with handle’s 58.41 buy point, advancing nearly 5% in heavy volume. The 5% buy area went up to 61.33, so the stock is slightly extended. ZIM shares moved up 0.5% Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto stock reclaimed its long-term 200-day moving average during Tuesday’s 8.2% advance. There is no new buy point at this time with the stock still below its 50-day line. Shares rose nearly 1% premarket Wednesday.
Xpeng Motors rebounded 7.3% Tuesday and may be set for an attempt to retake the 50-day line. Shares had been forming a cup with handle, but that formation is gone now. Shares gained 2% premarket Wednesday.
Among U.S.-based EV stocks, Lucid Motors shares dropped 1.5% premarket Wednesday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock is moving up the right side of a new base after regaining their 50-day line during Tuesday’s 9% surge.
EV-truck maker Rivian moved up nearly 1% premarket Wednesday, on pace to add to Tuesday’s 2.6% rally. RIVN shares closed Tuesday about 53% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight with the stock coming off all-time lows.
Tesla Stock
Tesla stock inched higher premarket Wednesday, set to extend a win streak to three sessions. Shares are trying to regain their 50-day moving average, which would be positive for the stock’s base-building progress. Last week, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 14% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rallied 1.7% Tuesday, making it three straight up sessions. Shares are about 14% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis, after nearly hitting the 20%-25% profit-taking level in early January. Shares rose 0.4% premarket Wednesday.
Software leader Microsoft rose 0.2% Tuesday, extending a win streak to three sessions. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout. Shares added 0.5% premarket Wednesday.
Be sure to follow Scott Lehtonen on 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
The post Dow Jones Futures Rally As Inflation Hits Highest Level Since 1982; Jefferies Slides On Sales Miss appeared first on Investor’s Business Daily.
