Dow Jones Rises On Cool Inflation Report, Weak Retail Sales; Tesla Stock Races Higher

The Dow Jones Industrial Average rose Wednesday morning after a colder-than-expected headline inflation report from the Labor Department’s Producer Price Index. And oil prices hit a seven-week high as shares of Tesla sought to add to Tuesday’s surge and rose in early morning trading.


The PPI fell 0.5% in December, its biggest monthly drop since April 2020 and much larger than the expected 0.1% drop, according to Econoday estimates. Year over year, the PPI rose 6.2%, below the estimate of 6.8%.

Meanwhile, retail sales fell 1.1% in December, missing estimates that called for a 0.8% drop.

Interactive brokers (IBKR) and United Airlines (UAL) announced its results on Tuesday evening, while Charles Schwab (SCW) results came out early Wednesday.

IBKR stock was up 5.9% in morning trade, passing the buy point of 80.95, a double bottom. United Airlines jumped 3% after beating profit and sales targets. Shares of Schwab fell 3% after a shortfall.

stock market today

Global mobileye (MBLY) climbed 2.7% after Deutsche Bank began hedging with a buy rating and price target of 48. Dow Jones Stock IBM (IBM) fell more than 2% after a Morgan Stanley downgrade from overweight to equal weight, with a lowered price target of 148.

biotechnologies Modern (ARNM) rose 4.7% after Tuesday night’s announcement of an experimental vaccine that has been shown to be 84% effective against respiratory syncytial virus, or RSV, in the elderly.

Electric vehicle manager You’re here (TSLA) rose 3.5% on Wednesday as Chief Executive Elon Musk goes on trial for his 2018 tweets that discussed taking the company private. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both higher after today’s stock market open.

Deere (DE), IBD Ranking Action Fluorine (FLR), Isolate (PODD) and Recent IBD Stock of the Day Medpace (MEDP) – as well as Dow Jones names Amgen (AMGN), Chevron (CLC) and walmart (WMT) – are among the best stocks to buy and watch as the market tests the strength of a fresh rally.

Fluor and Medpace are IBD ranked stocks.

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Dow Jones Today: Oil Price, Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.1% and the S&P 500 rose 0.3%. And the tech-heavy Nasdaq composite gained 0.6%, with Moderna and Tesla leading the index in early trade.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) rose 0.4% early Wednesday.

The 10-year Treasury yield fell to 3.39% on Wednesday morning, on pace with a two-day winning streak.

Oil prices rose again on Wednesday, taking West Texas Intermediate futures to $82 a barrel, as the International Energy Agency said China’s Covid reopening would drive record oil demand. The nearly 2% gain puts WTI futures at their highest level since early December. WTI is also moving above its 50-day moving average, after settling above that line on Tuesday for the first time since mid-November.

Stock market rally

On Tuesday, the Dow Jones Industrial Average fell 1.1% and the S&P 500 lost 0.2%. The Nasdaq composite rose 0.1%, extending a winning streak to seven sessions.

Tuesday’s The Big Picture column warned: “However, major benchmarks continue to struggle at or near major moving averages, and resolution may take time. Best-case scenario: Instruments build bases to new support that act as stepping stones for strong price action in the second quarter.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Amgen, Chevron, Walmart

Pharmaceutical giant Amgen is shaping a flat base that has a buy point of 296.77, according to IBD MarketSmith Pattern Recognition. First, Amgen shares need to retake their 50-day line, which is a key resistance level to watch. AMGN shares edged higher early Wednesday.

Energy giant Chevron broke strong resistance at its 50-day line in Tuesday’s 1.65% rally as it nears the buy point of 189.78 on a flat basis. Chevron’s fourth quarter results are expected Jan. 27. Shares of CVX rose 0.5%, climbing along with oil prices.

The CVX stock is posting a solid 93 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. The composite rating is designed to help investors easily find the highest growth stocks.

Discount retailer Walmart is also seeing resistance on its 50-day line amid Tuesday’s 0.6% loss. The stock is building a handle cup base which has a buy point of 154.74. Walmart shares fell 0.3% on Wednesday morning.

4 best growth stocks to buy and watch in the market Stock market rally

Top stocks to buy and watch: Deere, Fluor, Insulet, Medpace

Deere is approaching a buy point of 448.50 on a flat basis. Stocks have their eye on the buy side as they rebound from a 50-day support test and are just 2% away from entry. Deere shares added 0.4% on Wednesday morning.

IBD Leaderboard Fluor stock is trying to break above the 36.16 buy point on a flat basis, but the shares gave up their buy point on Tuesday’s 3.4% decline. If stocks retake this entry, the 5% buy zone peaks at 37.97. FLR stock gained 0.1% early Wednesday.

Today’s recent IBD stock, Insulet, is approaching the 316.54 double bottom buy point despite Tuesday’s 2.3% drop. PODD stock was unchanged on Wednesday.

Medpace edged higher on Wednesday, closing in on the 235.82 buy point of a consolidation. Last week, shares moved above an early entry at 220.09. The company’s results are expected on February 2. 13. Medpace shares rose 1% on Tuesday.

Stocks to buy and watch in the stock market rally

These are the top seven stocks to buy and watch in today’s stock market, including three leaders from the Dow Jones.

Company Name Symbol Correct point of purchase Basic type
Deere (OF) 448.50 Flat bases
Fluorine (FLR) 36.16 Flat bases
Isolate (POD) 316.54 Double bottom
Medpace (MEDP) 235.82 Consolidation
Amgen (AMGN) 296.77 Flat bottom
Chevron (CLC) 189.78 cutting patterns
walmart (WMT) 154.74 Mug with handle
Source: IBD data as of Jan 18 July 2023

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock jumped 7.4% on Tuesday, closing at its highest level since Dec. 21. 21. Despite their recent rally, stocks remain well below their 50 and 200 day lines. In early January, shares hit a 52-week low at 101.81. Tesla stock closed Friday about 66% off its 52-week high. Tesla’s revenue is expected in January. 25.

Shares of the electric vehicle giant turned to Tuesday’s gains, trading up 3.5% on Wednesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, shares of Apple climbed 0.9% on Tuesday, closing at their highest level since Dec. 21. 15. The stock remains around 24% off its 52-week high. Apple will release its quarterly results on February 2. 2. AAPL stock traded up 0.8% on Wednesday.

Microsoft stock rose another 0.5% on Tuesday, extending a winning streak to seven trading days. The software giant is around 25% off its 52-week high. Revenue from MSFT is expected in January. 24. Stocks traded up 0.4% early Wednesday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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