April 25, 2024

The Dow Jones Industrial Average continued to trade sideways and hovered around break-even territory on Wednesday, as investors digested new inflation data and awaited the Federal Reserve’s ruling on interest rates.




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Early Wednesday, the producer price index came in below views of a 0.1% increase and was unchanged for November, according to Econoday. Annually, producers saw prices increase 0.9% vs. views of a 1% increase.

The signs of cooling inflation got even better for core PPI, which excludes food and energy. That figure remained unchanged, though Wall Street expected a 0.2% increase for the month.

However, inflation data disappointed on Tuesday and showed prices rose 0.1% in November from October. Wall Street had expected them to stay flat.

Meanwhile, the Fed was expected to hand down its rate decision at 2 p.m. ET. Fed Chair Jerome Powell is due to speak at 2:30 p.m. ET. According to the CME FedWatch Tool, the Fed is expected to maintain rates at 5.25% to 5.5%. The odds of a rate cut are 44% for March and go up to 48.9% for May.

Indexes Stay Flat

The Dow Jones index edged into negative territory in recent action but was essentially flat. The S&P 500 trimmed its gains to 0.1% on the stock market today.

And the Nasdaq tried to keep the momentum going but pared gains after touching a new high for the year on Tuesday. The tech-dominated index also was flat in midday trades.

Among sectors, materials lagged while utilities led. Volume on the New York Stock Exchange and the Nasdaq was higher compared with the same time on Tuesday. Advancers beat decliners by a small margin on both indexes.

The small-cap Russell 2000 index also gave up its 0.2% early gains and was flat, as did the Innovator IBD 50 ETF (FFTY). The yield on the benchmark 10-year Treasury note fell 5 basis points to 4.15%.

Dow Jones Companies And Stocks Near A Buy Point

Tech stocks took the early lead among Dow components, but several were flat or in negative territory in noon trades. Microsoft (MSFT), and Salesforce (CRM) dipped, though Apple (AAPL) rose. Apple is in buy range from a handle entry of 192.93.

Cisco (CSCO) and Intel (INTC) lagged. United Health (UNH) turned positive while Verizon (VZ) underperformed.

Outside the Dow, Adobe (ADBE) fell nearly 2% and now sits just below an alternate buy point of 628.60. Adobe is due to report earnings after the market close. On Tuesday, analysts at Citi raised its price target to 675 from 610 while maintaining a neutral rating.

On the IBD 50, Amphastar Pharmaceuticals (AMPH) is in a cup with handle with a buy point of 58.35. Meta (META) is rebounding from the 50-day moving average just above a buy point of 326.20. Meta is also on IBD Leaderboard.

MongoDB (MDB) and Dynatrace (DT) are on watch as well. MDB is near a buy point of 412.67. Dynatrace is in a buy zone from a 52.60 entry. Further, Take-Two Interactive (TTWO) gapped up to the top of a buy zone from a 153.84 entry. Finally, IBD 50 stock Intra-Cellular Therapies (ITCI) is at a buy point of 63.93.

Also outside the Dow Jones index, Photronics (PLAB) gapped up after earnings. Sales grew 8% in the fourth quarter while earnings of 60 cents per share rose 18% from the prior year quarter.

Tesla Falls

Among Magnificent Seven stocks, Tesla (TSLA) fell 1.5%. It was revealed that the Inflation Reduction Act tax credit will stop applying to some of Tesla’s Model 3 vehicles. The stock is at risk of giving up the 50-day line.

Also, the electric-vehicle giant plans to release a software update for more than 2 million of its vehicles under recall over concerns about their Autopilot system. The update follows a two-year probe by the National Highway Traffic Safety Administration.

Google-parent Alphabet (GOOGL) gave up early gains. Shares fell Tuesday after a negative jury verdict in an antitrust trial.

Finally, Vertex Pharmaceuticals (VRTX) surged and broke out of a flat base’s buy point of 387.42. Shares are at an all-time high after positive results from a study for its pain treatment for peripheral neuropathy in diabetic patients.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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Source: investors.com

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