Dow Jones futures rallied Wednesday morning on colder-than-expected key inflation data. In the meantime, netflix (NFLX) climbed after UBS raised its price target on the streaming giant.
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The Labor Department presented consumer price index numbers for June and said headline and core inflation rose 0.2% on the month, colder than monthly increases of 0, 3% provided for both. Year-over-year consumer inflation rose 3.0%, its lowest rate since the start of 2021. Annual inflation is expected to rise 3.1%.
The core CPI inflation rate, which excludes food and energy prices, fell from May’s year-on-year rate of 5.3% to 4.8%, in below the estimate of 5.0%.
Elsewhere, the earnings season kicks off this week, with Delta Airlines (DAL), cintas (CTAS) and Attached (FAST) is expected to report on Thursday. Earnings reports from major banks mark the official start of the season on Friday, with JPMorgan Chase (JMP), Citigroup (This Wells Fargo (WFC) due to a report.
stock market today
Streaming giant Netflix rose 1.25% on Wednesday morning after UBS raised its price target from 390 to 525, maintaining its Buy rating. Electric vehicle giant You’re here (TSLA) climbed 2.5%.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were also downright higher ahead of today’s stock market open.
Dominos Pizza (DPZ) posted an early 12% gain, after The Wall Street Journal reported that Domino’s had reached a deal to list its menus on Uber (UBER) delivery lists. This decision marked a change in Domino’s stance of not working with third-party door-to-door deliverers. Uber shares gained 1.9%.
Other stock market leaders include Alphabet (Google T Metaplatforms (META). GOOGL stock gained 0.9%, while Meta stock rose 1.1% in premarket trading.
Dynatrace (DT), Meta Platforms, MongoDB (MDB) and Nvidia (NVDA) – as well as Dow Jones stocks American Express (AXP), caterpillar (CAT) and Selling power (CRM) – are among the best stocks to watch in the current stock market downturn.
Tesla is an IBD rank stock, while American Express was in this Stocks Near a Buy Zone column. Dynatrace was a recent choice for IBD Stock Of The Day.
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Dow Jones Today: Oil Price, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures were up 0.5% relative to fair value, while S&P 500 futures gained 0.7%. Nasdaq 100 futures rose 0.9% from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.35%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Wednesday.
The 10-year US Treasury yield fell to 3.89%, after CPI inflation data. The yield stood at 3.98% on Tuesday.
Oil prices extended Tuesday’s gains, with the West Texas Intermediate climbing 0.5% Wednesday morning and approaching an early June high above $75. The Energy Information Administration’s weekly oil inventory report is due out at 10:30 a.m.
Market share
On Tuesday, the Dow Jones Industrial Average rebounded 0.9%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite climbed 0.55%. Finally, the small-cap Russell 2000 rose 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, equity investors have nothing to complain about. Still, the major indexes are trending sideways. After rising more than 30% since the beginning of the year, it may be too much to ask for the Nasdaq to add another 5% or 10%. The good news is that participation continues to expand in this market.”
Now is an important time to read IBD’s The Big Picture column as the stock market continues 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 builds a mug base with handle that has a buy point of 177.04. Shares are 1% off their entry after a 1.7% rally on Tuesday. AXP stock rose 0.3% on Wednesday morning.
Industrial giant Caterpillar exceeds a buy point of 250.89 in a mug with handle, according to IBD MarketSmith pattern recognition. CAT stock rose slightly early Wednesday.
Salesforce rebounded decisively from its 50-day line on Tuesday, entering a new buy zone. Stocks are also approaching the 225 buy point from a flat base, according to IBD Leaderboard analysis. CRM stock gained 0.3% on Wednesday morning.
4 best growth stocks to buy and watch in the market Stock market rally
Best stocks to buy and watch: Dynatrace, Meta, MongoDB, Nvidia
Software maker Dynatrace breaks above the 52.99 entry of a tight three-week chart pattern. A tight stock represents a brief consolidation in which institutional investors pause buying. The shares are in the 5% buy zone which rises to 55.64, according to chart analysis from IBD MarketSmith. DT stock edged 0.2% on Wednesday morning.
Facebook’s parent Meta Platforms has consolidated tightly over the past three weeks, putting in a fresh entry at 298.12. With the stock extended so far from its previous base, this buy point should be used as a complementary entry. Meta shares added 0.4% before trade on Wednesday.
MongoDB traded tight after its recent earnings-fueled jump, which offered fresh entry. Stocks are just below the tight three-week formation that showed a buy point at 398.89 after the recent declines. Meanwhile, aggressive investors could have used a trendline entry around 386. MDB stock rose 0.4% early Wednesday.
After its May 25 earnings-fueled gap, Nvidia shares have been trending steadily higher. Amid a pullback since June 20, the stock offers a fresh opportunity to buy stocks. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD rating stock. Nvidia shares gained 0.5% on Wednesday morning.
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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 Name | Symbol | Correct point of purchase | Point of purchase type |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Mug with handle |
| Selling power | (RCMP) | 200.00 | Consolidation |
| Cloudy | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Mug with handle |
Source: IBD data as of July 10, 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 ended a three-day losing streak on Tuesday, rising just 0.1%. Despite recent declines, Tesla shares remain well out of the buy range past the 207.79 double bottom buy point and close to their 2023 highs.
TSLA stock appeared to add to Tuesday’s gains, climbing more than 2% on Wednesday. Tesla plans to release its second quarter results on July 19.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares extended a three-session losing streak, falling 0.3%. AAPL stock, which has been down in five of the past six trading sessions, continues to hold well above a buy point of 157.38. Early Wednesday, shares gained 0.7% in morning action.
Microsoft shares reversed from early losses on Tuesday, ending up 0.2%. They seem to find support at their 50-day support level. A bounce in big volume would result in a new buy zone. And on Wednesday morning, Microsoft shares were up 0.8%.
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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