Dow Jones Futures Rise Ahead Of Impending CPI Inflation Data; Fed Minutes Later
The Consumer Price Index inflation report is due out at 8:30 a.m. ET, with the Federal Reserve minutes later in the afternoon.
Dow Jones futures rose slightly Wednesday morning in anticipation of key inflation data and the release of the Consumer Price Index. In the afternoon, minutes of the Federal Reserve's most recent policy meeting will be available.
Wall Street projects that the CPI will rise 0.3% in the month. This would be a 5.2% increase year-over-year. Core prices, which exclude energy and food, will rise 0.4% for the month. A 5.6% increase is expected over a year.
JPMorgan Chase, Citigroup (C), Wells Fargo(WFC), and PNC Financial are all set to report bank earnings Friday. Additionally, Delta Air Lines will report on Thursday while UnitedHealth (UNH), earnings will be out Friday.
Stock Market Today
American Airlines (AAL), which provided a first-quarter update on its earnings and sales, saw a more than 2% drop. In morning trade, electric-vehicle titan Tesla (TSLA), fell 0.4%
Before today's stock exchange open, Dow Jones tech giants Apple and Microsoft (MSFT), were mixed.
Floor & Decor featured this week.
Dow Jones Today: Treasury Yields, Oil Prices
Dow Jones futures increased 0.15% compared to fair value ahead of Wednesday's opening bell. S&P 500 futures added 0.15%. The tech-heavy Nasdaq 100 futures lost early losses and gained 0.1% in morning trading.
The Nasdaq 100 tracker Invesco QQQ Trust, (QQQ), reversed 0.1%, while the SPDR S&P500 ETF (SPY), gained 0.2% in the early hours of Wednesday.
On Wednesday, the 10-year U.S. Treasury yield traded at 3.45%. The 10-year yield was at its lowest point since mid-September last week. However, it is rebounding this week.
U.S. oil prices fell after Tuesday's gains and were trading lower early Wednesday morning. West Texas Intermediate futures remained above $81 per barrel. At 10:30 AM, the Energy Information Administration released weekly oil inventories. ET.
Stock Market Rally
The Dow Jones Industrial Average increased 0.3% Tuesday while the S&P500 fell 0.1%. Tech-heavy Nasdaq Composite fell 0.4%
Dow Jones Stocks to Buy and Watch: Boeing, Cisco Systems and Visa
According to IBD MarketSmith pattern recognition, Boeing, Dow Jones leader is close to a flat base's 221.43 purchase point. The latest entry was 0.1% lower than shares, which fell 5%.
Cisco Systems' 51.84 buy-point on a flat base fell to 1.4% Tuesday. CSCO stock was the top entry on March 31. Shares rose 0.3% Wednesday morning.
Visa shares rose 0.9% Tuesday to be within a cup base's 234.40 purchase point. V stock gained a fraction on Wednesday.
Top Stocks To Buy And Watch: Five Below, Floor & Decor, ServiceNow, Vertex
Five Below added 0.2% Tuesday to their breakout gains above a 212.66 buy level in flat base. The 5% buy zone is now at 223.29. Stock fell 0.4% Wednesday morning.
Backstory: Five Below, a Philadelphia-based discount store chain that operates 1,292 stores for teens and young adults in 42 states, ended 2022 with a beat in earnings and revenue. Five Below's fourth quarter earnings rose 23% to $3.07 per stock, ending a string of quarterly declines.
IBD Leaderboard stock Floor & Decor was within striking distance of a cup with a handle's 99.47 purchase point. The shares rose 0.3% on Wednesday morning.
Backstory: Floor & Decor has 191 warehouse-format stores as well as six design studios in 36 states. It offers tile, wood, vinyl, laminate, vinyl and natural stone flooring products. It also sells accessories. The earnings are expected to fall 2% this year, before rising to 27% and 24% respectively in 2024-2025.
IBD SwingTrader's pick ServiceNow continues its upward movement with a 494.72 buypoint. The potential handle, which will have a 482.43 buypoint, is just one day away. NOW stock inched lower Wednesday morning.
It also offers self-service tech portals that allow workers to access administrative tools and workflow tools.
Vertex Pharmaceuticals trades at just below a cup base's 325.29 purchase point. VRTX stock was unchanged Wednesday morning.
Stocks to Buy and Watch in Stock Market Rally
Nike (NKE), 131.41 Flat base
Visa (V) 234.40 Cup base
Cisco Systems (CSCO) 51.84 Flat base
Source: IBD Data as of April 11, 2023
Tesla Stock
Tesla stock recovered 1.2% Tuesday to snap a five-day losing streak. Shares fell to 7%-8% last week from a 200.76 cup with handle buy point. They fell below their 50-day support level, which was at 200.76 in a cup with handle. The stock closed Monday at 49% below its 52-week peak.
TSLA stock dropped 0.4% Wednesday morning. However, it is still looking to increase Tuesday's gains.
Dow Jones Leaders: Apple and Microsoft
Apple shares dropped 0.8% Tuesday among Dow Jones stocks, adding to Monday's losses. The stock of AAPL fell a fraction on Wednesday.
Microsoft shares remain above a flat-base's 276.86 purchase point, despite Tuesday's 2.3% selloff. The buy point is now at 290.70, which means that the 5% buy zone has moved from 276.86 to 276.86. MSFT stock rose Wednesday morning after Wedbush raised its price target for the stock from 295 to 315 and maintained an outperform rating.