Sunday, May 19, 2024

Dow Jones Falls 200 Points On Hot CPI Inflation Report; 8 Earnings Movers To Watch

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The Dow Jones Industrial Average briefly fell more than 200 points Tuesday after a hotter-than-expected January Consumer Price Index report on inflation. Meanwhile, First Solar (FSLR) dropped after Evercore ISI downgraded the stock from outperform.

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The Labor Department’s CPI report showed the index rose 0.5% from the previous month, in line with estimates. The index climbed 6.4% on an annual basis, hotter than the expected 6.2% prediction. Core prices, which exclude food and fuel costs, gained 0.4% on the month. That’s above the expected 0.3% estimate and 5.6% year over year, matching views.

Arista Networks (ANET), Cadence Design Systems (CDNS), Lattice Semiconductor (LSCC), Medpace (MEDP) and SolarEdge Technologies (SEDG) reported earnings results after Monday’s close.

Arista shares lost nearly 1% in morning trade, but are approaching a buy point at 140.91. Cadence jumped more than 3%. Lattice stock rose around 1%. And Medpace declined around 6% early. Finally, SolarEdge shares lost nearly 5% despite strong fourth-quarter earnings and sales results.

Meanwhile, Coca-Cola (KO), GlobalFoundries (GFS) and InMode (INMD) reported ahead of Tuesday’s open.

KO stock fell around 1%, while GlobalFoundries shares moved up 1.5%. Lastly, InMode shares moved up 0.5%.

Stock Market Today

Electric-vehicle leader Tesla (TSLA) traded up 4% Tuesday morning, while Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were up and down after today’s stock market open.

Dexcom (DXCM), IBD Leaderboard stock Snowflake (SNOW), Inspire Medical Systems (INSP) and Wingstop (WING) — as well as Dow Jones stocks Caterpillar (CAT), JPMorgan Chase (JPM) and Salesforce (CRM) — are among the top stocks to buy and watch, amid the recent pullback in the market rally.

Snowflake is an IBD Leaderboard stock. Inspire and Dexcom were recent IBD Stock Of The Day subjects. Salesforce was featured in this week’s Stocks Near A Buy Zone column.


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Dow Jones Today: Oil Prices, Treasury Yields

After Tuesday’s opening bell, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 moved up 0.3%. The tech-heavy Nasdaq composite climbed 0.6% in morning action,.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.6% and the SPDR S&P 500 ETF (SPY) rose 0.3% early Tuesday.

The 10-year U.S. treasury yield fell to 3.68% Monday, pausing after last week’s big gains. The 10-year yield ticked higher to 3.73% Tuesday morning after the CPI inflation report.

Oil prices extended Monday’s losses, falling more than 1% Tuesday morning. West Texas Intermediate futures traded below $79 a barrel. Natural gas prices bolted nearly 5% higher, with Henry Hub futures trading around $2.52 per million British thermal units.

Stock Market Rally

On Monday, the Dow Jones Industrial Average climbed 1.1%, and the S&P 500 also rose 1.1%. Meanwhile, the Nasdaq composite snapped a three-day losing streak, advancing 1.4%.

Monday’s The Big Picture column commented, “It seems the Nasdaq knows no moderation. Of 17 up days so far this year, 11 have been moves of 1% or more. Seven of 12 down days also saw moves of at least 1%. In total, the composite is off to a 13.6% gain in 2023, far outpacing other major indexes.”


Five Dow Jones Stocks To Buy And Watch Now


Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan, Salesforce

Top Dow Jones stock Caterpillar is back in buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares were up 0.2% Monday. CAT stock lost 1% Tuesday morning.

Banking giant JPMorgan is still in the 5% buy range above a 138.76 flat-base buy point after a 1.1% rise Monday. The 5% buy zone tops out at 145.70. JPM shares inched lower early Tuesday. JPM stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

Salesforce, featured in this week’s Stocks Near A Buy Zone column, is building a cup with handle that has a 178.94 buy point. Shares climbed 2.4% Monday. CRM stock was down 1.2% early Tuesday.


4 Top Growth Stocks To Buy And Watch In The Stock Market Rally


Top Stocks To Buy And Watch: Inspire, Snowflake

Recent IBD Stock Of The Day Inspire Medical Systems closed at the top of the 5% buy area past a flat base’s 262.64 buy point amid Monday’s 3% rally, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 84 IBD Composite Rating. INSP stock was down 1.2% Tuesday.

Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.

New IBD Leaderboard stock Snowflake is approaching an early entry at 178.80, as the software leader moves up the right side of a deep cup base that features a 205.76 buy point. SNOW stock shed 2% Tuesday morning.

Backstory: The software firm offers a new way for enterprises and large organizations to access, arrange and analyze their data. To help customers maximize their investments in data analytics, Snowflake charges by time of usage. Earnings are due out March 1.

Dexcom, Wingstop Eye Latest Buy Points

Dexcom shares rose 0.3% Monday, moving further up the right side of a cup base with a 125.65 buy point. Shares could also form a handle over the next few weeks, so keep an eye out for a potential lower entry. The stock was down 1.1% Tuesday.

Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom’s newest continuous glucose monitor, or CGM, gains steam in the U.S. and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration cleared Dexcom’s new device, G7, last year.

Wingstop added a handle to a cup base, lowering the correct entry to 169.04. Shares are just 3% away from the entry after Monday’s near-5% rally. WING stock was down 1.9% Tuesday.

Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.


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Stocks To Buy And Watch In Stock Market Rally

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

Company Name Symbol Correct Buy Point Type Of Base
Inspire Medical Systems (INSP) 262.64 Flat base
Visteon (VC) 152.20 Cup base
Caterpillar (CAT) 239.95 Flat base
Snowflake (SNOW) 205.76 Cup base
JPMorgan (JPM) 138.76 Flat base
Wingstop (WING) 169.04 Cup with handle
Source: IBD Data As Of Feb. 13, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live


Tesla Stock

Tesla stock declined 1.1% Monday, adding to Friday’s 5% skid. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. Shares closed Monday nearly 50% off their 52-week high.

Shares rebounded from Monday’s losses, climbing 4% Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares jumped 1.9% Monday, rebounding from last week’s losses. Shares are around 15% off their 52-week high and are moving up the right side of a new base. Apple shares sold off 1.8% Tuesday.

Microsoft stock advanced 3.1% Monday, snapping a three-day losing streak. Shares are back above their 200-day line and are about 17% off their 52-week high after recent gains. MSFT stock was up 0.2% Tuesday morning.

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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