The Dow Jones Industrial Average gained amid better-than-feared inflation data. Tesla (TSLA) rose after CEO Elon Musk made a promise amid his ongoing Twitter (TWTR) battle. Coinbase (COIN) was up despite disappointing results amid a Bitcoin rally. Apple (AAPL) was a top blue chip.
A trio of stocks were among a plethora of names passing buy points. Albemarle (ALB), Graphic Packaging (GPK) and Greif (GEF) all tested entries.
Volume was mixed, falling on the Nasdaq but rising on the New York Stock Exchange vs. the same time Tuesday.
The yield on the benchmark 10-year Treasury note fell one basis points to 2.79%. West Texas Intermediate crude oil rose around 1.5% to just under $92 per barrel.
Inflation Data Gives Fed Leeway
Stocks were surging after inflation data came in cooler than expected early Wednesday. The Labor Department’s CPI inflation rate showed consumer prices were flat in July, better than views for a 0.2% rise and down from June’s 1.3% jump.
Inflation rose 8.5% in July from a year ago, below the 8.7% consensus estimate, and below the annual rate of 9.1% in June. Oanda senior market analyst Edward Moya said the data had prompted traders to slash their Fed rate hiking bets.
“Wall Street is now anticipating a Fed pivot in September as pricing reflects a half-point increase,” he said in a note to clients. “If inflation continues to drop, the bull-steepening trade will gain further momentum.”
The Producer Price index, which measures wholesale inflation, will be out Thursday. Positive data here could give further momentum to the current stock market uptrend.
Nasdaq Surges As Small Caps Impress
The Nasdaq was shining brightest out of the major indexes. It was up 2.6%. Zscaler (ZS) was a top performer as it vaulted 11% higher.
The S&P 500 also muscled higher, gaining 1.8%. Cruise stocks did well here, with Norwegian Cruise Line (NCLH) gaining more than 11%.
U.S. Stock Market Today Overview
Last Update: 3:10 PM ET 8/10/2022
S&P 500 sectors were all positive. Materials, communication services, consumer discretionary and technology were all shining. Only the defensive utilities area was struggling to move higher.
Small caps gave the bears the bloodiest nose however, with the Russell 2000 index rising 2.8%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, was doing almost as well with a 2.7% gain.
Dow Jones Today: Apple Stock Pops
The Dow Jones Industrial Average was holding the bulk of its gains for the day. It was up 1.4%.
Apple stock was among the best performers on the Dow Jones today with a gain of more than 2%. The relative strength line hit new highs, a positive sign.
AAPL stock currently sits well below a potential consolidation pattern buy point of 183.04, according to MarketSmith analysis.
But Walt Disney (DIS) was faring best, rising nearly 4%. The company is getting set to post earnings after the close.
Tesla Stock Gains As Elon Musk Makes Promise
Tesla stock rallied Wednesday despite the news CEO Elon Musk had made another mammoth stock sale amid his ongoing Twitter takeover battle. The eccentric executive said the reason he had sold about $7 billion in stock was so he does not have to do so at an inopportune moment.
“In the (hopefully unlikely) event that Twitter forces this deal to close (and) some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he tweeted.
He also promised that he will buy Tesla stock back if the Twitter deal does not go ahead. Musk could be forced to complete a $44 billion takeover deal for Twitter if he loses an upcoming trial.
Tesla stock jumped nearly 4%. It has formed a consolidation with a 1,152.97 buy point, according to MarketSmith analysis.
TSLA stock remains a long way from its entry, which makes it one to watch for now. It is now trying to close in on the key 200-day moving average after slipping back below it. TSLA remains well above the 50-day line. Twitter stock also jumped, gaining nearly 3%. This allowed TWTR to gap away from its own 200-day line.
Coinbase Stock Shrugs Off Earnings As Bitcoin Rallies
Coinbase stock managed to move higher despite a disappointing quarterly report. It was bolstered by rising Bitcoin prices.
COIN lost $4.98 per share, well below analyst views for a loss of $2.65. In addition, the firm saw revenue collapse by nearly 64% to $808 million vs. a year ago as cryptocurrency prices fell. It also slashed full-year forecast for transacting users. It now expects 7 million to 9 million monthly transacting users compared to a range of 5 million to 15 million three months ago.
Bitcoin was trading at around nearly $24,000 after gaining about 3% in the past 24 hours, according to CoinDesk.
Among other cryptocurrency plays, Grayscale Bitcoin Trust (GBTC) rose almost 5% while Bitcoin mining play Riot Blockchain (RIOT) rocketed almost 12%.
Outside Dow Jones: 3 Stocks Offer Buy Points
Albemarle is actionable after pushing back above a narrow 250.25 handle within a new cup pattern. The large-cap lithium mining giant has been outperforming the broader market of late. A mixture of strong earnings and price performance has won it an IBD Composite Rating of 97.
Its bullish move secured the stock a place on the prestigious IBD Leaderboard list of top stocks Wednesday.
Graphic Packaging sits in a buy zone after passing a cup-with-handle buy point of 23.09. This is a first-stage pattern, which means it is more likely to succeed. Big Money has been snapping up GPK stock of late. This is reflected in its best-possible Accumulation-Distribution Rating of A+.
Finally, Greif is trading just below a consolidation pattern entry of 72.10. Earnings are a key strength for the industrial packaging and containers. Earnings have grown by an average of 124% over the past three quarters. It also sits at the summit of the Containers/Packaging Industry Group.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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