Dow Jones futures rallied Wednesday morning on cooler-than-expected key inflation data, with the release of the Labor Department’s CPI reading. Netflix (NFLX) climbed after UBS hiked its price target on the streaming giant.
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The overall and core CPI rose 0.2% on the month, cooler than the expected 0.3% monthly increases for both. Year over year, consumer inflation rose 3.0%, its coolest rate since early 2021. Annual inflation was expected to rise 3.1%.
The core CPI inflation rate, which strips out food and energy prices, dropped from May’s year-over-year rate of 5.3% to 4.8%, below the 5.0% estimate.
Further, earnings season kicks off this week, with Delta Air Lines (DAL), Cintas (CTAS) and Fastenal (FAST) set to report on Thursday. Earnings reports from big banks mark the official launch of the season on Friday, with JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) due to report.
Stock Market Today
Streaming giant Netflix rose 1.25% Wednesday morning after UBS raised its price target from 390 to 525, maintaining its buy rating. Electric-vehicle giant Tesla (TSLA) climbed 2.5%.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were also squarely higher ahead of today’s stock market open.
Domino’s Pizza (DPZ) rattled off an early 12% gain, after The Wall Street Journal reported that Domino’s had landed a deal to list its menus on Uber (UBER) deliver lists. The move implied a change in Domino’s stance of not working with third-party home deliverers. Uber shares gained 1.9%.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 0.9%, while Meta shares rose 1.1% in premarket trade.
Dynatrace (DT), Meta Platforms, MongoDB (MDB) and Nvidia (NVDA) — as well as Dow Jones stocks American Express (AXP), Caterpillar (CAT) and Salesforce (CRM) — are among the best stocks to watch in the current stock market pullback.
Tesla is an IBD Leaderboard stock, while American Express was featured in this Stocks Near A Buy Zone column. Dynatrace was a recent pick for IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures rose 0.5% vs. fair value, while S&P 500 futures gained 0.7%. Nasdaq 100 futures climbed 0.9% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.35%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Wednesday.
The 10-year U.S. Treasury yield ticked lower to 3.89%, after the CPI inflation data. The yield settled Tuesday at 3.98%.
Oil prices extended Tuesday’s gains, with West Texas Intermediate climbing 0.5% Wednesday morning and approaching an early June high above $75. The Energy Information Administration’s weekly report on oil inventories is due out at 10:30 a.m.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite climbed 0.55%. Finally, the small-cap Russell 2000 advanced 1%, closing above the 1,900 level for the first time since early March.
Tuesday’s Big Picture column commented, “After two days of good action, stock investors have little to grouse about. Still, the major indexes are in a sideways pattern. After rising more than 30% year to date, it may be asking too much for the Nasdaq to add an additional 5% or 10%. The good news is that participation continues to broaden in this market.”
Now is an important time to read IBD’s The Big Picture column as the stock market holds near this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: American Express, Caterpillar, Salesforce
American Express is building a cup-with-handle base that has a 177.04 buy point. Shares are 1% away from their entry following a 1.7% rally on Tuesday. AXP stock rose 0.3% Wednesday morning.
Industrial giant Caterpillar is breaking out past a 250.89 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock inched higher early Wednesday.
Salesforce decisively rebounded from its 50-day line Tuesday, entering a new buy area. Shares are also approaching a flat base’s 225 buy point, according to IBD Leaderboard analysis. CRM stock added 0.3% Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Dynatrace, Meta, MongoDB, Nvidia
Software maker Dynatrace is breaking out past a three-weeks-tight chart pattern’s 52.99 entry. Tight action represents a brief consolidation in which institutional investors pause their buying. Shares are in the 5% buy area that goes up to 55.64,l per IBD MarketSmith chart analysis. DT stock tacked on 0.2% Wednesday morning.
Facebook parent Meta Platforms has been tightly consolidating for the last three weeks, putting a new entry at 298.12. With the stock so far extended from its previous base, this buy point should be used as an add-on entry. Meta shares added 0.4% premarket Wednesday.
MongoDB traded tightly after its recent earnings-fueled jump, which offered a new entry. Shares are just below the three-weeks-tight formation that showed a buy point at 398.89 after recent declines. Meanwhile, aggressive investors could have used a trendline entry around 386. MDB stock moved up 0.4% early Wednesday.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Nvidia shares gained 0.5% Wednesday morning.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Cup with handle |
Source: IBD Data As Of July 10, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla ended a three-day losing streak Tuesday, up just 0.1%. Despite the recent declines, Tesla shares remain sharply out of buy range beyond a double bottom’s 207.79 buy point and near their 2023 highs.
TSLA stock looked to add to Tuesday’s gains, climbing more than 2% Wednesday. Tesla plans to report its second-quarter results on July 19.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock extended a losing streak to three sessions, dropping 0.3%. AAPL stock, down in five of the last six trading sessions, continues to hold sharply above a 157.38 buy point. Early Wednesday, shares gained 0.7% in morning action.
Microsoft shares reversed from early losses Tuesday, ending 0.2% higher. They appear to be finding support at their 50-day support level. A bounce in heavy volume would result in a new buy area. And on Wednesday morning, Microsoft shares were up 0.8%.
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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