Dow Jones Reverses On CPI Inflation Report; AI Giant Oracle Dives On Earnings

The Dow Jones Industrial Average reversed higher Tuesday after the early release of a critical inflation report, the Consumer Price Index. Meanwhile, artificial intelligence player Oracle (ORCL) took a dive after reporting weak sales results.




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The Labor Department said the CPI rose 0.1% for the month of November, slightly hotter than estimates that called for no change in rates. Year over year, the CPI rose 3.1%, in line with estimates. Core prices in November rose 0.3% on the month, with an annual rise of 4.0%. Both numbers met estimates.

The inflation news comes ahead of Wednesday’s Federal Reserve policy update, with an interest rate decision at 2 p.m. ET.

Oracle plunged 9% in morning trade in the wake of the company’s earnings report, issued late Monday. The tech giant’s sales numbers missed Wall Street’s estimates, though profits topped analyst targets. Shares were set to open Tuesday below their 50- and 200-day moving averages.

Another key earnings mover Tuesday includes Casey’s General Stores (CASY). CASY stock dropped around 1% in morning action.

Dow Jones Today: Oil Prices, Treasury Yields

After Tuesday’s opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 inched lower. The tech-heavy Nasdaq composite rose 0.1% in early action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 0.1%, while the SPDR S&P 500 ETF (SPY) fell a fraction early Tuesday.

The yield on the 10-year U.S. Treasury bond traded unchanged at 4.23% Tuesday morning. On Monday, the benchmark settled at 4.23%, holding just off its lowest level since early September.

Oil prices threatened to end their three-day bounce Tuesday, as West Texas Intermediate futures lost nearly 3%. WTI traded below $70 a barrel. Last week, WTI futures hit their lowest level since late June.


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Stock Market Rally

On Monday, the Dow and the S&P 500 both climbed 0.4%, while the Nasdaq composite gained 0.2%.

Monday’s Big Picture column commented, “The stock market is growing more confident about a soft landing for the U.S. economy next year — where growth will slow but not enough to knock us into a harsh recession.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to invest during the ongoing stock market uptrend.


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Stock Market Today: Best Stocks To Buy And Watch

IBD Leaderboard stock Amazon (AMZN), IBD SwingTrader issue Booking (BKNG), Eli Lilly (LLY) and Snowflake (SNOW) — along with Dow Jones stocks Boeing (BA), UnitedHealth (UNH) and Visa (V) — are among the best stocks to buy and in the current market rally.

Apple and Snowflake are featured in this Stocks Near A Buy Zone column.


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Dow Jones Stocks To Watch: Boeing In Buy Range

Aerospace stock Boeing moved further past a cup base’s 243.10 buy point Monday, with a 1.4% rally. The 5% buy zone tops out at 255.26. BA stock was up another 0.1% Tuesday.

Health care giant UnitedHealth remains above a handle entry at 546.78 despite Monday’s 1.1% loss. UNH stock was up 0.25% Tuesday.

Payments leader Visa continues to trade in buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock rose 0.4% Tuesday.


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Stocks To Buy And Watch: SNOW Breaks Out

IBD Leaderboard stock Amazon continues to trade just at a cup base’s 145.86 entry, with shares closing right at the entry Monday amid a 1% drop. AMZN stock gained 0.6% Tuesday morning.

IBD SwingTrader stock Booking broke out past a 3,207.32 handle entry, with a 2.8% rally Friday. BKNG stock tacked on 2.2% by Monday’s close, and moved higher in the buy zone. BKNG stock was up 0.4% Tuesday.

Drug giant Eli Lilly continues to trace a flat base with an official buy point at 629.97. An early entry would be in play if the stock is able to bounce strongly from its 50-day line. LLY stock dropped 0.5% Tuesday morning.

Artificial intelligence leader Snowflake is breaking out past a cup-with-handle’s 192.66 buy point, according to IBD MarketSmith pattern recognition. SNOW stock climbed 1.2% Monday, closing just above the buy trigger. SNOW stock dropped 1.2% early Tuesday.

Best Stocks In Today’s Stock Market Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Amazon (AMZN) 145.86 Cup base
UnitedHealth (UNH) 546.78 Handle entry
Booking (BKNG) 3,207.32 Handle entry
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Dec. 11, 2023

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Magnificent Seven Stocks: Nvidia, Tesla

Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) moved down 1.2% early Tuesday, while Nvidia (NVDA) gained 1.3%.

Graphics-chip giant Nvidia slid 1.85% Monday, as the stock continues to battles for support at its 50-day line, just below a 476.09 double-bottom entry.

Tesla stock skidded 1.7% Monday, snapping a four-day win streak. TSLA is holding modestly above its 50-day line, which is a key support level to watch. The stock’s big double-bottom pattern has a 278.98 buy point, while an early entry is in play at 252.75.

Dow Jones Leaders: Apple, Microsoft

Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded mixed after today’s stock market open.

Apple stock sold off 1.3% Monday, erasing its gains past a cup-with-handle entry at 192.93. Apple shares lost 0.1% Tuesday.

Microsoft stock moved down 0.8% Monday, ending a two-day rebound. MSFT is just above a cup base’s 366.78 buy point and in buy range. And the software stock was up a fraction Tuesday morning.

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

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Source: investors.com

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