The Dow Jones Industrial Average rose Wednesday morning after a cooler-than-expected inflation report from the Labor Department’s Producer Price Index. And oil prices shot to a seven-week high, while Tesla stock appeared to amplify Tuesday’s rise, racing higher in early morning trade.
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The PPI fell 0.5% in December, the biggest monthly decline since April 2020 and much larger than the expected 0.1% drop, according to Econoday estimates. Year-over-year, the PPI rose 6.2%, underperforming the estimate of 6.8%.
Meanwhile, retail sales fell 1.1% in December, beating estimates that called for a 0.8% decline.
Interactive Brokers (IBKR) and United Airlines (UAL) reported results late Tuesday while Karl Schwab (SCHW) results came out early Wednesday.
IBKR shares gained 5.9% in morning trade, breaking the buy point of a double bottom at 80.95. United Airlines rose 3% after beating profit and revenue targets. Schwab shares lost 3% after falling earnings.
stock market today
Mobileye Global (MBLY) rose 2.7% after Deutsche Bank initiated coverage with a buy rating and a price target of 48. Dow Jones stock IBM (IBM) is down more than 2% after Morgan Stanley downgraded it from overweight to equal weight, with a lower target price of 148.
biotech modern (MRNA) rose 4.7% after the announcement late Tuesday of an experimental vaccine shown to be 84% effective against respiratory syncytial virus (RSV) in older adults.
Market leader in electric vehicles Tesla (TSLA) surged 3.5% on Wednesday as Chief Executive Elon Musk faces court charges over his 2018 tweets discussing the company’s privatization. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both higher after the market open today.
deer (DE), IBD Leaderboard Share fluorine (FLR), Island (PODD) and the current IBD stock of the day Medpace (MEDP) – as well as Dow Jones names amgen (AMGN), rafters (CVX) and Walmart (WMT) – are among the top stocks to buy and watch as the market tests the strength of a new rally.
Fluor and Medpace are IBD Leaderboard stocks.
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Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average was up 0.1% and the S&P 500 was up 0.3%. And the tech-heavy Nasdaq Composite was up 0.6%, with Moderna and Tesla leading the index in early trade.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.6% and SPDR S&P 500 ETF (SPY) was up 0.4% early Wednesday.
The 10-year Treasury yield fell to 3.39% on Wednesday morning and was on track to start a two-day winning streak.
Oil prices rose again on Wednesday, lifting West Texas Intermediate futures to $82 a barrel as the International Energy Agency said China’s Covid reopening will lead to record oil demand. The nearly 2% gain brings WTI futures to their highest since early December. WTI also continues to move above its 50-day moving average line after settling above it for the first time since mid-November on Tuesday.
stock market rally
On Tuesday, the Dow Jones Industrial Average lost 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, the major benchmarks continue to struggle at or near the major moving averages and a resolution may take time. Best case scenario: instruments build bases on fresh support, serving as springboards for strong price action in Q2.”
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
Dow Jones Stocks to Buy and Watch: Amgen, Chevron, Walmart
Drug giant Amgen is forming a flat base that has a buy point of 296.77, according to pattern recognition by IBD MarketSmith. First, Amgen shares need to retake their 50-day moving average, which is a key resistance level to watch. AMGN shares are higher early Wednesday.
Energy giant Chevron broke the strong resistance at its 50-day moving average during Tuesday’s 1.65% rally while nearing the buy point of a flat base at 189.78. Chevron’s fourth quarter results are due on January 27th. CVX shares rose 0.5%, rising with oil prices.
CVX stock is showing a solid 93 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Discount retailer Walmart also sees resistance at its 50-day moving average after losing 0.6% on Tuesday. The stocks are building a cup and handle base that has a buy point of 154.74. Walmart shares fell 0.3% Wednesday morning.
4 top growth stocks to buy and watch 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 are eyeing the buy point as they rebound from a test of 50-day support and are just 2% away from entry. Deere shares were up 0.4% on Wednesday morning.
IBD leaderboard stock Fluor is trying to clear the buy point of a flat base of 36.16, but shares gave up their buy point during Tuesday’s 3.4% decline. If stocks repeat this entry, the 5% buy area will top out at 37.97. FLR stock was up 0.1% early Wednesday.
The latest IBD stock of the day, Insulet, is nearing the buy point of a double bottom of 316.54 despite falling 2.3% on Tuesday. PODD stock was flat on Wednesday.
Medpace inched higher on Wednesday nearing the buy point of a consolidation at 235.82. Last week shares moved through an early entry at 220.09. The company’s results are expected on February 13th. Medpace shares gained 1% on Tuesday.
Stocks to buy and watch in the stock market rally
These are seven top stocks to buy and watch in today’s stock market, including three top Dow Jones stocks.
| Company Name | symbol | Correct purchase point | type of base |
|---|---|---|---|
| deer | (EN) | 448.50 | flat base |
| fluorine | (FLR) | 36.16 | flat base |
| Island | (PODD) | 316.54 | Double bottom |
| Medpace | (MEDP) | 235.82 | consolidation |
| amgen | (AMGN) | 296.77 | flat base |
| rafters | (CVX) | 189.78 | cup base |
| Walmart | (WMT) | 154.74 | Cup with handle |
Source: IBD data as of January 18, 2023
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla shares rose 7.4% on Tuesday to close at the highest level since Dec. 21. Despite their recent rebound, stocks remain well below their 50- and 200-day moving averages. In early January, the stock hit a 52-week low at 101.81. Tesla stock closed about 66% below its 52-week high on Friday. Tesla earnings are due on January 25th.
Shares of the EV giant looked down on Tuesday’s gains and traded 3.5% higher on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.9% on Tuesday to close at the highest level since Dec. 15. The stock remains about 24% below its 52-week high. Apple will release its quarterly earnings on February 2nd. AAPL shares rose 0.8% on Wednesday.
Microsoft shares rose another 0.5% on Tuesday, extending a winning streak to seven trading days. The software giant is down about 25% from its 52-week high. MSFT earnings are due January 24th. Shares were trading 0.4% higher early Wednesday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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