Dow Jones Rises 500 Bps on Fresh CPI Inflation Data; Elon Musk sells more Tesla shares

The Dow Jones Industrial Average jumped 500 points after a cool inflation report – the Department of Labor’s Consumer Price Index, or CPI. Tesla CEO Elon Musk has sold nearly $7 billion worth of Tesla stock.


Celsius (CELH), Coinbase (PIECE OF MONEY), grocery store (GO), Plug hole (PLUG), Roblox (RBLX), super microcomputer (SMCI), Commercial counter (TTD) and Unit software (U) were the main drivers of earnings on Wednesday.

Celsius shares soared nearly 7%. COIN stock rebounded 2%. Shares of Grocery Outlet rose about 1%, while Plug Power rose 10%. Roblox stock slipped more than 5% on weak earnings. Super Micro shares rose about 14%. Trade Desk jumped over 29% on strong forecasts. Finally, Unity was up nearly 3% in early trading.

You’re here (TSLA) traded more than 4% higher on Wednesday morning. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) both posted strong gains ahead of today’s stock market open.

waltz disney (DIS) gained 3.3%, leading the Dow Jones Industrial Average ahead of its fiscal third quarter report, due after the close.

In the current healthy market environment, Dow Jones stocks Coke (KO) and UnitedHealth (UNH) — as well as Monolithic power systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) – are among the best stocks to buy and watch.

UnitedHealth and Vertex are IBD stocks. Ollie’s and Vertex were featured in this week’s Stocks Near A Buy Zone column. Monolithic Power was Thursday’s IBD share of the day. Vertex is also an IBD SwingTrader idea.

Dow Jones Today: Treasury Yields, Oil Prices, CPI Inflation Rate

The Dow Jones Industrial Average rose 1.5% and the S&P 500 rose 1.7%. The tech-heavy Nasdaq composite jumped 2.3% in morning trading.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 2.3%. And the SPDR S&P 500 ETF (SPY) gained 1.7%.

The 10-year Treasury yield fell to 2.74% on Wednesday morning after CPI inflation data. The 10-year Treasury yield is trying to rebound after hitting its lowest level since early April last week.

Meanwhile, US oil prices are also trying to rebound from recent losses. But West Texas Intermediate futures fell nearly 1% on Wednesday, trading around $90 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.

The Labor Department’s CPI inflation rate was released early Wednesday. Consumer prices were flat in July, cooler than estimates that called for a 0.2% rise and a fall from June’s 1.3% jump. Inflation rose 8.5% in July from a year ago, below the consensus estimate of 8.7%. The producer price index, which measures wholesale inflation, will be released on Thursday.

Stock market rally

After returning a 1.6% intraday gain on Monday, the Nasdaq composite fell another 1.2% on Tuesday. The Dow Jones Industrials and S&P 500 fell 0.2% and 0.4% respectively.

Tuesday’s The Big Picture column commented: “At this point, it makes sense to cut some gainers to raise cash. There’s nothing wrong with being proactive, even with the stock market still in a confirmed uptrend. After a strong move lower, some consolidation for the indices should be expected. Keep an eye out for new buying, but don’t settle for second or third tier stocks. Focus on quality merchandise. .

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Coca Cola, UnitedHealth

Dow Jones soda giant Coca Cola builds the right side of a flat base that has a buy point of 67.30. Meanwhile, an early entry due to a handful is also in play at 65.14. Stocks are testing their recent 50-day losses. KO stock gained 1.1% on Wednesday.

Health insurance giant and IBD Leaderboard UnitedHealth stock remains in the buy range above the 518.80 buy point of its double-bottom base with a handle amid the 0.1% gain Tuesday, according to IBD MarketSmith’s chart analysis. The 5% pursuit zone rises to 544.74. Shares rose 0.55% on Wednesday.

The UNH stock is posting a solid 94 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: Monolithic, Ollie’s, Vertex

Thursday IBD Stock of the Day Monolithic Power Systems continues to build the right side of a consolidation with a buy point of 580.10. Meanwhile, shares fell below an early entry of 514.80 on Tuesday’s 4.6% slide. Keep an eye out for a potential handful to offer another alternate point of purchase. Shares rose 2.7% on Wednesday.

Ollie’s Bargain Outlet rebounds from its 10-week line – a critical support level – putting the top discount retailer in a new buy zone. Stocks also carve out a handful after a large cup base, placing the latest buy point at 72.37. The current price action is around 10% of this entry. Shares rose 2.6% early Wednesday.

IBD SwingTrader Vertex Pharmaceuticals stock rebounded 1.7% on Tuesday, moving further away from the buy range after a cup entry with a handle at 279.23. The 5% pursuit zone increased to 293.19. The stock’s June 23 break is back on track after last week’s Q2 earnings results. Vertex shares climbed 0.8% on Wednesday morning.

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

Tesla Stock

Tesla stock fell 2.4% on Tuesday, falling to its lowest level since July 28. Late Tuesday, regulatory filings showed Musk had sold an additional 7.92 million Tesla shares worth nearly $7 billion. Shares rose more than 4% on Wednesday morning.

Last week, shares of Tesla hit their highest level since early May, but are now finding firm resistance around their 200-day line, which is a key level to watch. The stock is more than 30% off its 52-week high. A 3-for-1 stock split will take place on August 24.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, shares of Apple edged higher on Tuesday, ending a three-day losing streak. The stock is building the right side of a cup basis which has a buy point of 179.71. Shares rose 1.7% on Wednesday morning.

Microsoft rose 0.7% on Tuesday, ending a two-day slide. The software giant is still trading below its long-term 200-day line. The stock closed Tuesday about 19% off its 52-week high and rose 2% early Wednesday.

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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