The stock market gained Wednesday in spite of another elevated reading on inflation. Earnings reports started to come in for Q1 earnings season, mostly adding a positive lift to the stock market.
By 3 p.m. EST, the Nasdaq composite jumped 1.8%. The S&P 500 climbed 0.9% and the Dow Jones Industrial Average gained 0.8%. The small-cap Russell 2000 gained 1.8%.
The price of crude oil jumped more than 3.6% to above $104 a barrel. Russian forces increased airstrikes and ground attacks on southern and eastern Ukraine, a day after Russian President Vladimir Putin said peace talks had reached a dead end.
U.S. Stock Market Today Overview
|Last Update: 3:08 PM ET 4/13/2022|
Stock market leader Marathon Oil (MRO) broke through its buy point of 26.50 of a three-weeks-tight follow-on buy opportunity. The shares are hitting recent highs — a level which it hasn’t hit since 2015.
Stock Market Today: Looking Past Hot And Heavy Producer Prices
Investors seemed to take the news on oil and the Ukraine war in stride as earnings reports and the report on wholesale inflation, so far, failed to derail the morning rebound.
The producer price index climbed more than expected in March, just the latest data to show elevated prices. Wholesale prices rose 1.4% in March, picking up the pace from the 0.9% increase the previous month. On a year-ago basis, the PPI rose 11.2% after a 10.3% increase in February.
Excluding food and energy items, wholesale inflation rose 1% in March, well above economists’ forecasts for a 0.5% increase. Compared to March 2021, PPI excluding food and energy also was above views, up 9.2%, the Bureau of Labor Statistics said.
Yet, the yield on the 10-year Treasury note eased 9 basis points to 2.67%. Investors seemed comfortable with the Fed’s new aggressive monetary policies.
Earnings Reports Give Positive Lift To Stock Market
Airlines stocks gained altitude after Delta Air Lines (DAL) beat analyst expectations this morning.
Delta, the first of the carriers to announce Q1 results, posted a loss of $1.23 a share vs. a year-ago loss of $3.55 a share. Revenue surged 125% to $9.35 billion as higher fares helped offset higher fuel costs.
Delta shares gapped above the 200-day moving average, up 6% in heavy trading. U.S. Global Jets ETF (JETS) gapped up more than 5%, reclaiming the 50-day moving average. IBD’s airlines industry group rose 5%, the best gain of 197 groups. American Airlines (AAL) jumped 10% in a bid to reclaim the 200-day line. It’s on pace for the best day since Nov. 9, 2020, according to Dow Jones Market Data.
Shares in PayPal Holdings (PYPL) fell 3.7% Wednesday on word Chief Financial Officer John Rainey plans to leave the online payment site for retail giant Walmart (WMT). Ahead of the management change, shares have plunged 42% in 2022 and 65% from its all-time high.
“John Rainey’s departure may be perceived as negative signaling. (It) could potentially refresh fears around the company’s ability to sustain above-market growth and reach financial targets,” Morgan Stanley analyst James Faucette said in a report to clients.
JPMorgan Chase (JPM) fell more than 3% after the bank reported a drop in first-quarter earnings. EPS fell to $2.63 a share, below views for $2.72 a share. Revenue came in at $31.59 billion, above the consensus estimate of $30.6 billion.
BlackRock, the giant investment management firm whose products include the iShares family of ETFs, came out better. Adjusted Q1 earnings climbed 23% and beat analysts’ estimates. Revenue rose 7% to nearly $4.7 billion. The stock was down 0.2% and remains well off prior highs.
IBD 50 Rises On Energy, Steel, Food Stocks
The Innovator IBD 50 ETF (FFTY) rose 2.2% as energy, fertilizer, steel and food-related stocks gained.
Steelmaker Nucor (NUE) jumped 3% past its profit zone, off a double-bottom entry with a buy point of 126.77.
Please read this Investor’s Corner on one key to long-term gains: taking a lot of profits at 20% to 25%.
Candy maker Tootsie Roll (TR) is climbing the rear wall of a cup base pattern and approaching a buy point of 38.16. Watch for a handle to form over the next few days, which could give investors a lower entry point.
Construction supplies chain Fastenal (FAST) beat profit estimates today as higher pricing helped overcome rising costs. Fastenal stock climbed back above the 58.39 buy point of a cup-with-handle base.
Follow Michael Molinski on Twitter @IMmolinski
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