In response to a hotter-than-expected inflation report, Wall Street reacted Tuesday by turning higher for Dow Jones futures and other major indices, which extended their gains. Oracle, a frontrunner in artificial intelligence, had its stock price rise today on the release of good earnings data.
In the morning trade, the S&P 500 futures increased 0.6% and the Dow Jones futures increased 0.3% relative to their fair value. The tech-heavy Nasdaq 100 futures gained 0.8% in the time leading up to the start of trading.
Within the United States, exchange-traded funds saw gains of 0.7% for the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) and 0.5% for the SPDR S&P 500 ETF (SPY).
Yields on 10-year Treasury notes rose slightly to 4.11%. In addition, oil prices fell in the early sessions, with West Texas Intermediate futures trading at slightly less than $78 a barrel.
Take a look at IBD’s updated exposure thresholds and how to adapt to the ever-changing market.
In February, the consumer price index (CPI) gained 0.4%, as predicted, with an annual increase of 3.2% that was hotter than projected. An annual increase of 3.1% was anticipated.
The core consumer price index (CPI), which does not include energy and food prices, rose 3.8% from the previous year and increased 0.4% from the previous estimate. Econoday anticipated a yearly growth of 3.7%.
After reporting better-than-anticipated quarterly results and sales that met the mark projected by analysts, artificial intelligence giant Oracle rocketed by over 13% in premarket activity early Tuesday. The announcement that artificial intelligence is increasing demand for Oracle’s cloud-computing division caused the stock price to soar.
On Holding (ONON) and Kohl’s (KSS) were among the other companies that reported earnings. In premarket trading, On shares fell fourteen percent and Kohl’s fell sixteen percent.
Furthermore, before to the J.P. Morgan Industrials Conference, Southwest Airlines (LUV) revised its financial projections, which caused a more than 7% decline in the stock price. Due to delays in aircraft deliveries from Boeing (BA), Southwest has announced that it will reduce its capacity projections and reassess its annual predictions.
The DJIA Soars
Monday saw a small gain of 0.1% for the Dow Jones Industrial Average and a small decline of 0.1% for the S&P 500. Nasdaq, which is heavily weighted in technology, fell 0.4%.
As the dangers grow, IBD nevertheless recommends having between sixty and eighty percent of your portfolio invested in stocks, according to Monday’s Big Picture piece. In response to the declining leading stocks, there has been a dearth of fresh leadership.
Some of the top stocks to buy and keep an eye on right now in the stock market include Duolingo (DUOL), Fifth Third Bancorp (FITB), Fortinet (FTNT), Block (SQ), and Dow Jones components Disney (DIS), IBM (IBM), and Procter & Gamble (PG).
Block was highlighted in this column on stocks that are near a buy zone. Additionally, IBD Leaderboard now includes Fifth Third.
Stocks like D.R. Horton (DHI), which is getting close to a 157.93 cup entry, are shown on the MarketSurge “Near Pivot” list when they approach purchase points in bases. The stock price fell little on Tuesday.
The 112.92 buy point is a large cup-with-handle base, and Disney is attempting to break out of it, according to chart analysis by IBD MarketSurge. On the stock market today, Disney stock rose 0.4%.
Stock in IBM, which is also trying to break out of a flat base at the 196.90 buy target, fell 0.3% on Monday. On Tuesday, IBM stock rose 0.3%.
Procter & Gamble, a behemoth in the consumer goods industry, dropped 0.2% on Monday, although it is still trading above its cup base at 158.38. On Tuesday, P&G stock fell slightly.
With the addition of a handle to a cup base, IPO leader Duolingo raised the buy point to 241.86. On Monday, shares of Duolingo rose 4.3%. Stocks rose 1.5 percent on Tuesday.
On Monday, Fifth Third Bancorp rose 1%, moving above a purchase mark of $35.73 for the first time. Tuesday, shares ended the day up 0.3%.
With the addition of a handle to its long cup base, cybersecurity leader Fortinet is raising the buy point to 73.91. Stocks rose 0.8% on Tuesday.
The correct purchase point has been raised to 83.29 as a result of the addition of a high handle on a cup base by Square parent Block. After a brief break above an 80.29 entry, last week’s 7% drop from the buy trigger ended the breakout. Tuesday, Square stock increased 0.3%, which is around 2% below the buy trigger.
Here are four of the most promising stocks to keep an eye on right now, one of which is a Dow Jones leader.
Brand Identity IconSort of Buy Point That Is Appropriate
The Novo Nordisk flat base index is 105.69.
Merrell (MRK)Cup basic price: 119.65
Digital Kingdom (DKNG)$35.00 Cup base
Flat foundation for Spotify (SPOT): 202.88
Information retrieved from IBD databases as of February 28, 2024.
Nvidia (NVDA) increased by 2.5% and Tesla (TSLA) by 1.1% in premarket trading, among the Magnificent Seven stocks.
Giant computer program in artificial intelligence On Monday, Nvidia’s stock price fell 2% more, marking the second consecutive day of steep declines. Stock in Nvidia, on the other hand, is still an IBD Leaderboard stock and is trading at a premium of over 70% over the 505.48 entry.
Even though it is still close to its recent lows, Tesla stock rose 1.4% on Monday. More than 40% of the way down from their 52-week high, shares are still trading at a steep discount to both their 50-day and 200-day moving averages.
Both Apple (AAPL) and Microsoft (MSFT), two of the Magnificent Seven Dow Jones firms, were trading higher in the hours leading up to Tuesday’s stock market opening.
On Monday, Apple stock rose 1%, ending a seven-day decline. The stock price is still low compared to its long-term 200-day moving average. As of Tuesday morning, the stock had gained 0.3%.
Among the most important areas to keep an eye on, Microsoft shares have been attempting to find support near the 50-day line in recent sessions. The stock of the software behemoth rose 0.5% today.