Dow Jones futures drop after key inflation data; Fed decision, Powell comments later today

Dow Jones futures remained lower at the start of mixed action on Wednesday after more key inflation data, with the release of the producer price index. Later in the day, the Federal Reserve’s two-day meeting will conclude with an interest rate decision, followed by comments from Fed Chairman Jerome Powell. Finally, Tesla stock jumped after the company slightly raised the price of its Model Y electric vehicle in the United States.


The producer price index – a gauge of prices received by producers for their goods – fell 0.3% on the month, cooler than estimates. Year-on-year, wholesale price inflation slowed from 2.3% to 1.1%, also lower than expected. Core PPI inflation fell to 2.8%. It should fall to 2.9% from 3.2%.

The Fed is expected to skip a rate hike at its two-day policy meeting that ends Wednesday at 2 p.m. ET. The move would pause the 10 consecutive rate hikes that began in March last year.

However, Wall Street also expects policymakers to signal their intention to rise again, barring a sharp slowdown in the labor market and inflation in basic services. How aggressive the Fed’s signals are today will likely determine the reaction of the S&P 500.

stock market today

Advanced micro-systems (AMD) rebounded 3% after Reuters reported Amazon (AMZN) was considering AMD’s newest AI chip for its AWS cloud computing business.

VE Giant You’re here (TSLA), now up 13 straight days, rose nearly another 2% on Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were little changed ahead of today’s stock market open.

Dexcom (DXCM), Floor and decor (NDF), Capital of Kinsale (KNSL) and Churchill Falls (CHDN) – as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.

Tesla is an IBD ranking stock, while Floor & Decor was IBD stock of the day on Thursday. Churchill Downs featured in this week’s Stocks Near A Buy Zone article.

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Dow Jones Today: Oil Price, Treasury Yields

Ahead of Wednesday’s opening bell, Dow Jones futures fell 0.3% from fair value, weighed down as UnitedHealth Group (UNH) fell more than 4%. The health insurer warned of a spike in medical costs in the second quarter at the Goldman Sachs healthcare conference.

S&P 500 futures added 0.1%, while Nasdaq 100 futures also traded up 0.1% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.2%, while the SPDR S&P 500 ETF (SPY) rose 0.25% early Wednesday.

Ahead of PPI inflation data and the Fed’s decision, the 10-year US Treasury yield fell to 3.82% on Wednesday. On Tuesday, the 10-year rate closed at its highest level since March 9.

Oil prices rose in early trading on Wednesday after Tuesday’s rebound from recent lows. West Texas Intermediate futures pared early gains to less than 1% on Wednesday, falling back below $70 a barrel. The Energy Information Administration’s weekly inventory data is released at 10:30 a.m.

Market share

On Tuesday, the Dow Jones Industrial Average rose 0.4%. The S&P 500 gained 0.7%, while the tech-heavy Nasdaq composite climbed 0.8%, hitting a new high in 2023.

Tuesday’s Big Picture column commented: “As for the Nasdaq, well, the index’s longest losing streak since May 5 has been two sessions. The index closed 9% above of its 50-day line and crossed an upper channel line, increasing the likelihood The Invesco QQQ Trust (QQQ) ended 10.1% above its 50-day line This is above the threshold 6% to 7% that has signaled setbacks for the Nasdaq 100 in the past.

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Cisco, JPMorgan, Salesforce

Dow Jones networking giant Cisco Systems is above a buy point of 50.58 in a cup-with-handle basis, posting a 0.6% gain on Tuesday. CSCO stock rose 0.2% premarket on Wednesday.

Dow Jones banking leader JPMorgan is approaching a fixed base buy point of 143.37 after a five-day winning streak. The shares are only 2% away from their last buy point. JPM stock gained 0.6% early Wednesday.

Salesforce has topped alternate entries at 193.91 and 200.00 in recent weeks, according to IBD rankings analysis. Over the past few weeks, stocks have reached the 20% profit zone from an entry of 178.94 cup with handle, and are now trying to rebound from the support at the 10-week line. CRM stock gained 0.4% on Wednesday morning.

4 best growth stocks to buy and watch in the market Stock market rally

Best stocks to buy and watch: Dexcom, Floor & Decor, Churchill Downs

Dexcom dropped the buy point of 126.44 on a flat basis, down 0.8% on Tuesday, according to IBD MarketSmith Model Recognition. The 5% buy zone will rise to 132.76 if the stock resumes entry. DXCM stock rose 0.9% pre-market on Wednesday.

IBD SwingTrader Floor & Decor stock rallied decisively back to its 50-day line on last week’s gains, putting the flooring retailer in a new buy zone. FND stock is only 3% away from a conventional buy point at 101.39. Shares were unchanged Wednesday morning.

Insurance leader Kinsale Capital closed in the 5% buy zone on Tuesday past a buy point of 345.75 amid a 1.1% rise in the session . The buy zone is up to 363.04. KNSL stock rose 0.7% on Wednesday morning.

Last week, the IBD Leaderboard Churchill Downs watchlist stock found support around its 50-day line, triggering a bullish signal with an alternative entry near 139. But the stock still sits around that level, as it also plots a flat base with a buy point of 150.45. . Stocks added 0.5% early Wednesday.

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Best stocks to buy and watch during the stock market rally

These are the four best stocks to buy and watch in today’s stock market, including a leader in the Dow Jones.

Company NameSymbolCorrect point of purchasePoint of purchase type
ASML (ASML)683.18Mug with handle
Selling power (RCMP)200.00Consolidation
Cloudy (NET)66.20Double bottom
Fortinet (FTNT)69.07Flat bottom
Source: IBD data as of June 12, 2023

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

IBD Leaderboard Tesla stock rebounded 3.55% on Tuesday, hitting a new high in 2023 and still breaking the buy point of 207.79 from a double-bottom base. Shares closed Tuesday 18% off their 52-week high.

TSLA stock looked to add to its extended winning streak, climbing 2% on Wednesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock posted a three-day winning streak, falling 0.3% on Tuesday after an analyst downgrade. The shares hit an all-time high at 184.95 last week and are just off that level. The stock continues to hold well above a buy point of 157.38. Early Wednesday, AAPL stock was indeed flat.

Microsoft shares rose 0.7% on Tuesday, rebounding for a fourth consecutive session and approaching their 2023 highs again. MSFT stock continues to hover around the 20%-25% profit-taking zone. from a fixed base buy point of 276.76, so investors are taking at least some profit. And Wednesday morning, Microsoft shares were unchanged.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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