Dow Jones futures were little changed Wednesday morning, along with S&P 500 futures and Nasdaq futures. The CPI inflation report and retail sales figures for April are expected to be released before the start of trading on Wednesday.
X
Stocks rose modestly to solidly on Tuesday, gaining momentum in the afternoon as the Nasdaq set a new record close. Although the producer price index for April exceeded expectations, the statistics for March have been revised significantly downward. It also generally sheds light on the various factors that influence the Fed’s preferred inflation measure, the core PCE price index. Fed Chairman Jerome Powell noted in a speech Tuesday that the PPI numbers are “mixed.”
meme stocks such as game stop (GME) and AMC Entertainment (AMC) has broken out of its highs, but has soared again.
Nvidia (NVDA) is moving towards a buy point with earnings a week away.
Embraer (ERJ), pure storage (PSTG), On hold (Onon), cloud strike (CRWD) and oracle (ORCL) broke or flushed other buy signals.
Nvidia stock is on the IBD Leaderboard, and Embraer and MakeMyTrip stocks are also on the Leaderboard’s watchlist. Nvidia, CrowdStrike, and Pure Storage stocks are listed on SwingTrader. Nvidia, MakeMyTrip, and CrowdStrike stocks are included in the IBD 50. CrowdStrike was the IBD Stock Of The Day on Tuesday.
The video embedded in this article discusses Tuesday’s market trends and analyzes CrowdStrike, Pure Storage, and ONON stocks.
Dow Jones futures today
Dow Jones futures rose slightly relative to fair value. S&P 500 futures rose slightly, while Nasdaq 100 futures were little changed.
Crude oil futures rose slightly.
Investors will hear the April Consumer Price Index, April Retail Sales and May Empire State Manufacturing Index at 8:30 a.m. ET. These are sure to shake up Dow Jones futures and Treasury yields.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
CPI inflation rate
Economists expect overall and core consumer prices to rise 0.3% in April, following a 0.4% rise in March. Overall CPI inflation is expected to be 3.4% year-on-year, down from 3.5% in March. Core CPI inflation should fall to 3.6% from 3.8%.
Meanwhile, retail sales in April are expected to steadily increase by 0.4%, following the 0.7% increase in March. Excluding automobiles and gasoline, sales are expected to increase by only 0.1%, following a 1% increase in March.
The New York Fed’s Empire State Manufacturing Index is expected to rise to -10 from -14.3 in April, but remains below breakeven.
revenue
New Holdings (NU) beat its first-quarter revenue target Tuesday night. However, Brazilian fintech stocks rose modestly, falling far short of buy points.
China’s e-commerce giant JD.com (JD) and India-based travel sites make my lip (MMYT) Reported early Wednesday morning.
stock market rise
The stock market rally gained momentum on Tuesday afternoon.
The Dow Jones Industrial Average rose 0.3% in stock market trading on Tuesday. The S&P 500 rose 0.5%, just below its all-time high. The Nasdaq Composite rose 0.75%, closing at a new all-time high and just below its all-time high set on March 21st. The small-cap Russell 2000 rose 1.1%.
After a solid rally, it’s positive to see the major indexes hovering near all-time highs. Things are looking even better for the major stocks, with several buy signals flashing over the past few days and more stocks setting up.
US crude oil prices fell 1.4% to $78.02 per barrel.
The yield on the 10-year Treasury note fell 3.5 basis points to 4.44%, reversing its intraday high of 4.53%.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV), which includes both Oracle and CRWD stock, rose 0.6%. The VanEck Vector Semiconductor ETF (SMH) rose 1.7%. NVDA stock is his primary holding in SMH.
The SPDR S&P Metals Mining ETF (XME) rose 1%. SPDR S&P Home Builders ETF (XHB) rose 0.9%. Energy Select SPDR ETF (XLE) rose 0.1% and Healthcare Select Sector SPDR Fund (XLV) rose 0.4%.
The Industrial Select Sector SPDR Fund (XLI) closed just below break-even. Financial Select SPDR ETF (XLF) rose 0.5%.
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GME stock, AMC Entertainment
Meme stocks continued to rise, led by OG meme plays GameStop and AMC Entertainment.
GameStop shares jumped 60% to 48.75 after surging 74% on Monday. GME stock hit 64.83 during the day.
AMC stock rose 32% to 6.85, but closed below its 200-day moving average. This comes after a 78% jump on Monday. The stock price reached 11.88 during the day.
GameStop and AMC became active overnight, posting solid gains.
Meme stocks soared this week after Keith Gill, aka Roaring Kitty, returned to social media for the first time in three years and shared a variety of memes. Gill helped spark his original meme stock’s rise in 2021.
Stocks in buy zone
Embraer stock rose 9.1% to $28.85, breaking above a flat-based buy point of 27.25 on extremely heavy volume. The Brazilian jet maker is currently expanding slightly.
Pure Storage shares rose 3.8% to 56.41, above the double-dip buy point of 55.09.
On Holding stock rose 18.3% to 36.30, clearing its short-term high of 34.93 and official buy point of 36.15, according to MarketSurge. On Holding’s profit more than doubled compared to the same period last year, overwhelming expectations.
CrowdStrike stock price rose 3.25% to 329.55, remaining above its 50-day line. It could be done now, or investors could use Friday’s high of 327.50 as an early entry. The official buy point is 365, but investors could use a move above the 338 level as an early entry.
Oracle stock rose 3.9% to 120.87, regaining its 50-day line on double normal volume. The database software giant has a 132.77 buy point from its new base following a long-term consolidation. But investors could use Tuesday’s move as an early entry into ORCL stock. Shares of Elon Musk’s artificial intelligence startup xAI soared on Tuesday after reports that it was in talks with Oracle for a multi-year, $10 billion cloud computing deal.
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nvidia stock
NVDA stock rose 1.1% to 913.56 on Tuesday, continuing to trade closely over the past few sessions and hovering just above its 50-day line. The buy point for Nvidia stock is 922.20 cup with handle.
The company, a leader in AI chips, announced its financial results on May 22nd.
what to do now
Stock market gains continue to trade closely, just below all-time highs. This breather allows more stocks to be placed, while the stocks that are making quick gains see their relative strength improve.
Some stocks like Pure Storage and Embraer are breaking out, while others like Nvidia are establishing themselves.
Wednesday’s CPI inflation report and other economic indicators are important, but it’s already time to focus on next week’s NVIDIA results. Nvidia’s earnings and guidance are key to the rise of the AI ​​sector and the overall market.
So be careful how much exposure you increase in the coming days, especially in the AI/technology space.
Be sure to work on your watchlist. Many stocks are moving into positions.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson’s thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
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