Dow futures rose sharply early Wednesday, along with S&P 500 and Nasdaq futures, with the release of a major inflation report. The stock market had a session of ups and downs on Tuesday, with technology companies closing higher with the Dow Jones Industrial Average lagging.
Meanwhile, Merck shares, dollar tree (DLTR) is among the stocks to watch amid the ongoing market correction.
The Labor Department will release its Consumer Price Index for April at 8:30 a.m. ET on Wednesday. Economists expect the CPI to show a 0.2% increase compared to March. Core CPI, which excludes food and energy, should rise 0.4%. On an annual basis, consumer prices should rise 8.1%, down from a 40-year high in March of 8.5%. Core inflation should ease back to 6% from 6.5% in March. Year-on-year comparisons are getting more and more difficult.
Meanwhile, the Labor Department will release its producer price index for April on Thursday.
stock to watch
Merck stock holds less than the point of buying a cup with a handle. LPX stock and possibly Atkore are working on the handles after both of them increased profits last week. ANTM stock and dollar tree (DLTR) retreated to the 50-day lines around the top of the previous buying areas. This may provide a buying opportunity or a sell signal.
Meanwhile, the Relative force line to apple (AAPL) continues to post new highs, with shares up 1.6% on Tuesday. AAPL’s stock is battling to get back to the 200-day streak, but it’s easily the best-looking big picture.
Microsoft (MSFT) looks much worse than Apple stock, but rebounded 1.9% on Tuesday after cutting lows in 2022. The cybersecurity play fortinet (FTNT) jumped 6.8% on Tuesday after also cutting its lows in 2022. That might be a hopeful sign for these enterprise-quality software leaders, but they’re not close to being actionable.
Anthem and Microsoft Stock are launched IBD Leaderboard. MRK stocks are running SwingTrader. Microsoft shares and FTNT are Long-term leaders of IBD. ATKR stock is located at defect 50. The dollar tree was on Tuesday IBD stock today.
The video included in the article reviews market action on Tuesday and analyzes Merck, Louisiana-Pacific and Anthem stocks.
Dow jones futures contracts today
Dow futures are up 1% against fair value. S&P 500 futures rose 1.2% and Nasdaq 100 futures rose 1.4%.
Crude oil futures rebounded 4%.
The 10-year Treasury yield fell 6 basis points to 2.93%, extending its decline this week ahead of key inflation data.
The CPI inflation report is sure to move Dow Jones futures and Treasury yields ahead of the opening.
Consumer prices in China rose 2.1% in April compared to the previous year. Producer prices jumped 8%. Both were slightly higher than expected. It comes amid severe Covid lockdowns that have slashed production and demand.
stock market tuesday
The stock market opened sharply higher, quickly reversed lower, then rebounded again before fading into mixed.
The Dow Jones Industrial Average fell 0.3% on Tuesday stock market trading. The S&P 500 rose 0.2%, with FTNT stock leading the way. The Nasdaq Composite Index is up 1%. There was little change to the small capital Russell 2000.
US crude oil prices fell 3.2% to $99.76 a barrel, falling back below $100. Crude plunged 6.1 percent on Monday.
The 10-year Treasury yield fell nine basis points to 2.99%. The 10-year yield hit 3.17% on Monday before reversing lower.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 0.2%, while the Innovator IBD Breakout Opportunities ETF is downfit) decreased 0.5%. iShares Expanded Technology and Software Fund (ETF)IGV) rose 1.3%, with MSFT stock taking first place while Fortinet stock also took first place. VanEck Vectors Semiconductor Corporation (SMH) by 2.5%.
SPDR S&P Metals & Mining ETF (XME) is down 1.1% and the US Global X Fund for Infrastructure Development (cradle) lost 1%. US Global Gates Foundation (ETF)Planes) rose 0.9%. SPDR S&P Homebuilders ETF (XHB) is down 1.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) Leading 0.9% and Financial Select SPDR ETF )XLF) 0.9%. SPDR Healthcare Sector Selection Fund (XLV) is up 0.4, with MRK and Anthem shares alike.
Ark stock tumble
Coinbase and Unity stocks are among the top 10 stocks on Ark Invest. COIN and Unity stock reported weaker-than-expected first-quarter results and gave poor guidance, with Coinbase also offering a mixed shelf view. Coinbase is down 15% in pre-market trading while Unity is down 22%. Both actually fell to new record lows on Tuesday.
The stock market had a massive bounce at the open on Tuesday, reversed lower, and rebounded again before fading out to close mixed. The Nasdaq rose strongly, despite its intraday gains, while the S&P 500 rose and the Dow Jones declined slightly.
The market was set to rebound, but Tuesday’s move was uninspiring. At best, this was the first day of a stock market rally attempt for the Nasdaq and S&P 500.
If the major indicators continue to advance, investors can look for Follow-up day in a few days.
There is not much in the way of leadership in the market at the moment.
Energy, fertilizer and other commodities stocks attempted to recover on Tuesday from Monday’s heavy losses, but the gains faded or even turned into losses. Mining and mineral stocks have already collapsed.
A few pharmaceutical companies such as Merck are doing well, while some medical services companies such as ANTM stock are still outstanding. Some wood and construction product companies are trying to establish it, including LPX stocks.
Essential consumer goods, such as food producers and discount retailers, hold up or rise. But will these defensive games be delayed when the new market rally takes hold?
Growth stocks are still in a brutal slump. While investors should still watch shares of Apple and a few giant companies like Microsoft, they are definitely not buying at the moment.
Major indicators could react positively to Wednesday’s inflation report, but it won’t be a game changer for the Federal Reserve. The Fed rate hikes are likely to continue at a rapid pace until a downward trend in inflation occurs over a period of several months. However, a relatively moderate inflation report could ease fears that the Fed will not be able to engineer a smooth landing.
What are you doing now
Investors should not be tempted to increase exposure until there is clear evidence of an upward trend in the market.
Just last week, major indexes rose for three consecutive days, with the March 4th Fed meeting encouragingly higher. We know how that ended.
At this point, investors should wait for a follow-up day before making new purchases. Even so, investors should be cautious, gradually adding exposure as a new market uptrend gains momentum, and quickly pulling back if the rally falters.
There may be a few stocks to buy on FTD. Even many stocks with strong relative strength are highs that are too far away or have been damaged in the charts.
Watch market moves on the sidelines, and keep your watchlists updated.
Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.
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