Dow Jones Rises On Mixed Fed Pivot Views; Warren Buffett’s Oil Stock Enters Big Deal

Dow Jones stocks switched course and turned a deficit into a small gain Monday as the markets awaited more guidance from the Federal Reserve on interest rates.


At its Wednesday meeting, the Fed is expected to maintain its target rate at 5.25% to 5.5%, according to the CME FedWatch Tool. The odds of a rate cut by 25 basis points in the March meeting stand at 38.4% and go up to 50.1% for May.

Investors also are looking to the Consumer Price Index inflation report for November, which is due Tuesday. Inflation is expected to remain unchanged for the second straight month, according to Econoday. It is seen dipping to 3.1% on an annual basis from October’s 3.2%.

The Dow Jones Industrial Average was up 0.3% in morning action. Meanwhile, the S&P 500 hovered around the break-even point while the Nasdaq declined 0.3% in the stock market today. Among sectors, consumer staples and industrials gained while communication services and technology lagged.

Small Caps, Dow Jones Stocks

Small-cap Russell 2000 stocks declined by 0.2% but the Innovator IBD 50 (FFTY) exchange traded fund outperformed with a 0.3% gain. And the yield on the benchmark 10-year Treasury note rose 1 basis point to 4.26%.

Meanwhile, volume was higher on both the New York Stock Exchange and the Nasdaq compared with the same time on Friday.

Among Dow Jones stocks, Boeing (BA) broke out of a cup with a buy point of 243.10. The aerospace giant announced that it appointed Stephanie Pope to the newly created position of chief operating officer.

Elsewhere on the Dow, Intel (INTC), Nike (NKE) and Salesforce (CRM) also gained. And Apple (AAPL) and UnitedHealth (UNH) declined.

Stocks Moving Today

Outside the Dow, Adobe (ADBE) climbed more than 2% ahead of its earnings report, due Wednesday. ADBE stock is near a 628.60 alternate entry.

Others reporting this week include Jabil (JBL), Costco (COST) and Lennar (LEN), all due on Thursday, as well as Darden Restaurants (DRI), which reports Friday. DRI is in a cup-with-handle buy zone with an entry at 158.70. COST and LEN are extended while Jabil is trading below its 50-day moving average.

Several so-called “Magnificent Seven” stocks dipped Monday. Amazon (AMZN), Meta (META) and Microsoft (MSFT) fell slightly. Amazon and Microsoft are in or near buy zones while Meta is holding at the 50-day moving average. AMZN, META and MSFT are on the IBD Leaderboard.

Also among Magnificent Seven stocks, Alphabet (GOOGL) shares fell below their 50-day line. The Google parent is in a cup-with-handle base with an entry at 139.42.

Booking Makes A Breakout

On IBD SwingTrader, Booking Holdings (BKNG) is breaking out above a 3,251.71 entry out of a consolidation.

Elsewhere outside the Dow Jones index, Warren Buffett-backed Occidental Petroleum (OXY) is buying CrownRock, a privately held oil play in the Permian Basin for $12 billion. OXY shares dipped slightly in early trades.

Shares of Macy’s (M) soared on news that it has received a buyout offer from Arkhouse Management and Brigade Capital Management for $5.8 billion. Macy’s stock was up more than 18% in recent action.

Cigna (CI) gapped up more than 16% and retook its 50-day line on news that it plans to buy back $10 billion in stock. It had been reported the company was in talks to merge with Humana (HUM), but the two health-care giants couldn’t come to terms and abandoned talks. Humana dropped 2% Monday morning.

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


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