Futures Fall Ahead Of CPI Inflation Data

The Dow Jones Industrial Average reversed lower Wednesday after key inflation data, with the release of the consumer price index. Airbnb (ABNB) plunged after issuing a cautious forecast for the second quarter.


The Labor Department’s consumer price index for April rose 0.4% on the month, matching targets, with an annual increase of 4.9%, slightly cooler than the 5% estimate. Core prices rose in line with estimates, up 0.4% for the month, with an annual increase of 5.5%.

Early Wednesday, Airbnb, Li Auto (LI), Occidental Petroleum (OXY) and Upstart (UPST) were on the move after earnings.

Airbnb reported solid first-quarter earnings growth late Tuesday, benefiting from the strong travel rebound in 2023. But Airbnb stock plunged 14% following results and a less-than-stellar forecast for the second quarter.

Li Auto reported booming first-quarter earnings and strong guidance early Wednesday after the Chinese EV startup posted a strong sales streak amid an EV price war. LI stock raced nearly 7% higher.

Occidental missed first-quarter earnings views Tuesday as sagging oil and natural gas prices weighed down profits. OXY stock dropped 1% in early trade.

Finally, Upstart soared 37% after beating Q1 earnings and sales forecasts.

Advanced Micro Devices (AMD), IBD Leaderboard stock Nvidia (NVDA), IBD SwingTrader idea Netflix (NFLX) and Uber Technologies (UBER) — as well as Dow Jones stocks Nike (NKE) and Visa (V) — are among the best stocks to watch in the still-struggling stock market uptrend.

Visa was featured in this week’s Stocks Near A Buy Zone column. Netflix and Nvidia were recent IBD Stock Of The Day topics.

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Dow Jones Today: Oil Prices, Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average reversed from early gains to fall 0.2%, and the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite gained 0.8% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%, while the SPDR S&P 500 ETF (SPY) traded up 0.2% early Wednesday.

The 10-year U.S. Treasury yield on Wednesday traded down to 3.45% after the CPI inflation report.

U.S. oil prices eased Wednesday morning, as West Texas Intermediate futures traded just below $73 a barrel. The weekly report on oil inventories from the Energy Information Administration is due out at 10:30 a.m.

Stock Market Rally Still Under Pressure

On Tuesday, the Dow Jones Industrial Average fell 0.2%. The S&P 500 declined 0.5%, while the tech-heavy Nasdaq composite dropped 0.6%.

Monday’s Big Picture column commented, “Given the pedestrian manner in which the major indexes are moving, especially since the end of March, it seems more likely for the distribution-day count to shrink to more comfortable levels due to the rule of time, not price progress.”

Now is an important time to read IBD’s The Big Picture column with the stock market still struggling to maintain its uptrend.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Nike, Visa

Nike shares declined 1.4% Tuesday, still below a cup-with-handle’s 127.59 buy point after last week’s breakout attempt. A new handle entry has also appeared, at 128.78. NKE stock rose 1% early Wednesday.

Visa shares remain in buy range above a 230.15 cup-with-handle buy point, amid a three-day win streak. Shares tacked on 0.4% Tuesday. The buy range goes up to 241.66. V stock was up 0.7% Wednesday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Best Stocks To Buy And Watch: AMD, Nvidia, Netflix, Uber

Chip leader Advanced Micro Devices paused after Monday’s surge that saw AMD stock climbed above an early trendline entry, using Thursday’s high of 91.64 mark as the buy point. The stock continues to build a cup base with a 102.53 buy point, according to IBD MarketSmith pattern recognition. AMD stock rose 1.6% Wednesday.

IBD Leaderboard stock Nvidia finished Tuesday down 2%, still above a 280.10 buy point in a short consolidation. The 5% buy zone goes up to 294.11. NVDA was up 1.3% early Wednesday.

Recent IBD Stock Of The Day, Netflix, popped above its 50-day moving average line Monday. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are nearing a buy point of 349.90 out of a cup-with-handle base. NFLX stock gained 1.1% Wednesday morning.

Uber Technologies decisively moved above a 37.68 buy point in a cup base, rallying 2.9% Monday. Despite Tuesday’s 1.65% decline, UBER shares are still in the 5% buy area that goes up to 39.56. Uber stock moved slightly higher Wednesday.

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Best Stocks To Buy And Watch In Stock Market Rally

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

Company Name Symbol Correct Buy Point Type Of Buy Point
Nvidia (NVDA) 280.10 Consolidation
Nike (NKE) 127.59 Cup with handle
Visa (V) 230.15 Cup with handle
Advanced Micro Devices (AMD) 102.53 Cup base
Source: IBD Data As Of May 9, 2023

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Tesla Stock

Tesla stock skidded 1.5% Tuesday, ending a four-day winning streak. Despite those recent gains, shares remain below their 50-day line, as they look to build a new base. The stock closed Monday 45% off its 52-week high.

TSLA stock looked to rebound from Tuesday’s losses, trading up 2.3% early Wednesday.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares dropped for a second day, falling 1% Tuesday. They closed just off their 52-week highs, which were set back in mid-August. The stock continues to add to gains above a 157.48 buy point and it is out of the buy range that ran up to 165.35. AAPL stock was up 0.9% Wednesday.

Microsoft shares lost 0.5% Tuesday, just off Friday’s 52-week high. Shares remain sharply above a 276.86 flat-base buy point. On Wednesday morning, MSFT stock rose 0.6%.

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


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