Dow Jones Futures Rise On Cool CPI Inflation Data; Cathie Wood Sells $92 Million Of Tesla Stock

Dow Jones Futures Rise On Cool CPI Inflation Data; Cathie Wood Sells $92 Million Of Tesla Stock

Business
June 13, 2023 by secret
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Dow Jones futures rose, while tech futures extended gains Tuesday after a cooler-than-expected CPI inflation reading. Cathie Wood’s Ark Invest sold a combined 393,000 shares of Tesla stock, worth about $92 million based on Monday’s closing prices. X May’s consumer price index rose 0.1% on the month, below the 0.2% estimate, with the annual inflation
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Dow Jones futures rose, while tech futures extended gains Tuesday after a cooler-than-expected CPI inflation reading. Cathie Wood’s Ark Invest sold a combined 393,000 shares of Tesla stock, worth about $92 million based on Monday’s closing prices.




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May’s consumer price index rose 0.1% on the month, below the 0.2% estimate, with the annual inflation rate falling to 4.0%, below estimates expecting an ease to 4.1% from 4.9%. The core CPI, excluding food and energy, rose 0.4%, in line with forecasts, lowering the core inflation rate to 5.3% from 5.5%.

Meanwhile, the Federal Reserve’s two-day meeting also kicks off Tuesday. The Fed is widely expected to skip a rate hike at its two-day policy meeting that wraps up on Wednesday at 2 p.m. ET. The move would pause the 10 consecutive rate increases begun in March last year.

Finally, Oracle (ORCL) earnings came out late Monday, topping Wall Street’s estimates. ORCL stock jumped 5% in premarket trade. Shares closed Monday in the 20%-25% profit area from a 91.22 cup-with-handle buy point following a late-March breakout move.

Stock Market Today

EV giant Tesla (TSLA), now up 12 days in a row, rose another 0.8% Tuesday morning. That was even after Cathie Wood’s Ark Invest disclosed the stock sales. Ark Invest also sold about 20,000 shares of Nvidia (NVDA). Nvidia shares rose nearly 1% early Tuesday.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of today’s stock market open. Intel (INTC) shares jumped more than 2% after reports said SoftBank Group’s UK-based Arm is in talks with Intel as a potential strategic investor for its initial public offering.

Dexcom (DXCM), Floor & Decor (FND), Fortinet (FTNT) and Kinsale Capital (KNSL) — as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy or watch in the stock market uptrend.

Tesla is an IBD Leaderboard stock, while Floor & Decor was IBD’s Stock Of The Day on Thursday.


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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures added 0.4%, while Nasdaq 100 futures traded 0.75% higher in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.6%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Tuesday.

After the CPI inflation data, the 10-year U.S. Treasury yield on Tuesday dropped to 3.7%. On Monday, the 10-year yield edged higher, still near its late-May highs.

Oil prices bounced back in early Tuesday trade after Monday’s sharp losses. West Texas Intermediate futures rebounded nearly 2% Tuesday, moving back above $68 a barrel — still in the low end of what has been the WTI trading range since early May.

Stock Market Action

On Monday, the Dow Jones Industrial Average rose 0.6%. The S&P 500 gained 0.9%, while the tech-heavy Nasdaq composite climbed 1.5%, hitting a new 2023 high.

Monday’s Big Picture column commented, “June — historically a poor month for the market — is so far a success. The S&P and Nasdaq are up roughly 4%. Of eight sessions so far this month, the S&P 500 and Nasdaq rose in six of them. The strength of the S&P’s rally in recent sessions caused the removal of the May 9 distribution day, leaving that index with a more manageable four days of higher-volume selling.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.


Five Best Dow Jones Stocks To Buy And Watch Now


Dow Jones Stocks To Buy And Watch: Cisco, JPMorgan, Salesforce

Dow Jones networking giant Cisco Systems added a handle to a cup base last week, now showing a buy point at 50.58. CSCO stock fell 0.3% Tuesday premarket.

Dow Jones banking leader JPMorgan is nearing a 143.37 flat-base buy point after a four-day win streak. Shares are just 2% away from their latest buy point. JPM stock dipped 0.1% early Tuesday.

Salesforce rallied past alternative entries at 193.91 and 200.00 in recent weeks, according to Leaderboard analysis.

In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now bouncing from support at the 10-week line. CRM stock added 0.6% Tuesday morning.


4 Top Growth Stocks To Watch In The Stock Market Rally


Best Stocks To Buy And Watch: Dexcom, Floor & Decor, Fortinet, Kinsale

Dexcom broke out past a flat base’s 126.44 buy point, with a 2.1% rally Monday, according to IBD MarketSmith pattern recognition. The 5% buy area goes up to 132.76. DXCM stock rose 0.9% premarket Tuesday.

IBD SwingTrader stock Floor & Decor decisively regained its 50-day line during Wednesday’s 5.1% advance, placing the flooring retailer in a new buy area. FND stock is just 4% away from a conventional buy point at 101.39. Shares gained 0.8% early Tuesday.

Insurance leader Kinsale Capital closed Monday in the 5% buy area past a 345.75 buy point despite a 2.1% drop in the session. The buy zone runs up to 363.04. KNSL stock fell 0.7% Tuesday morning.

Recent IBD Stock Of The Day Fortinet moved back above its flat base’s 69.07 buy point during Monday’s 2.7% advance. The buy area goes up to 72.52. FTNT stock was unchanged premarket Tuesday.


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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 a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
ASML (ASML) 683.18 Cup with handle
Salesforce (CRM) 200.00 Consolidation
Cloudflare (NET) 66.20 Double bottom
Fortinet (FTNT) 69.07 Flat base
Source: IBD Data As Of June 12, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live


Tesla Stock

IBD Leaderboard stock Tesla rallied 2.2% Monday, moving further out of buy range beyond a double-bottom base’s 207.79 buy point. Shares closed Monday 21% off their 52-week high.

TSLA stock looked to add to its extended win streak, climbing 0.7% Tuesday morning. Last week, shares advanced for a fourth-straight week, racing 14% higher.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rose for a third day, with a 1.6% gain Monday. Shares hit an all-time high at 184.95 last week and are just off that level. The stock continues to hold sharply above a 157.38 buy point. Early Tuesday, AAPL stock dropped 0.7% after UBS downgraded the stock from buy to neutral, while raising the price target from 180 to 190.

Microsoft shares rose 1.55% Monday, rebounding for a third-straight session and nearly recovering from Wednesday’s 3.1% sell-off. MSFT stock continues to hover around the 20%-25% profit-taking zone from a 276.76 flat-base buy point, so investors could have taken at least some profits. And on Tuesday morning, Microsoft shares rose 0.3%.

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

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Top Growth Stocks To Buy And Watch

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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





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