Dow Jones futures reversed higher Wednesday morning after key inflation data, with the release of the consumer price index. Airbnb (ABNB) plunged after issuing a cautious forecast for the second quarter.
X
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 1.6% 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.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures rose 0.5% vs. fair value, and S&P 500 futures moved up 0.75%. The tech-heavy Nasdaq 100 futures 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 0.7% 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.
Learn How To Time The Market With IBD’s ETF Market Strategy
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
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
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 1.9% 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 0.6% premarket 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.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
