Dow Jones Surges 600 Points On Cool CPI Inflation Data; Tesla Stock Hits New Low

The Dow Jones Industrial Average briefly rose more than 600 points on Tuesday after the release of inflation data. The Federal Reserve’s two-day policy meeting will also begin on Tuesday. And Boeing stock jumped further after the company received a new Dreamliner order from United Airlines.


CPI data sheet

Inflation data showed consumer prices rose 0.1% in November, cooler than the 0.3% rise expected. The index rose 7.1% year-over-year, below the 7.3% Econoday forecast.

Additionally, the Fed’s next meeting begins on Tuesday with an interest rate decision on Wednesday. While the Fed has already telegraphed a 50-basis-point hike, investors will be looking for more guidance on the Fed’s plans. According to CME’s FedWatch tool, traders place a 79% chance of a 50-basis-point hike.

late monday, interior room (ORCL) reported revenue and sales numbers that topped analyst estimates. Oracle shares jumped 4% in morning trading. There are more earnings reports this week Darden Restaurants (DRI) and Lennar (LEN).

Electric car giant Tesla (TSLA) turned lower Tuesday. Among the Dow Jones stocks, Boeing (BA) jumped 3% after that United Airlines (UAL) has ordered at least 100 of the aerospace giant’s 787 Dreamliners, with an option to buy an additional 100 new planes. Boeing’s shares extended above 173.95 on the cup base.

Dow Jones Technology Leader apple (AAPL) and Microsoft (MSFT) also rose sharply after the stock market opened today.

Allegro Microsystems (ALGM), IBD Stock Leaderboard Dexcom (DXCM), KLA (KLAC) and Interactive Brokers (IBKR) – as well as the name Dow Jones pieces (CAT), Home Depot (HD) and UnitedHealth Group (UNH) – is one of the top stocks to buy and watch.

Dexcom and Trane are IBD Leaderboard stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column. Allegro is a recent IBD 50 Stocks To Watch pick. Caterpillar, Interactive Brokers and Dexcom are recent IBD Stock Of The Day companies.

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Dow Jones Today: Oil Prices, Treasurys

After the opening bell on Tuesday, the Dow Jones Industrial Average rose 1.4%, as Boeing and Merck (MRK) increased by more than 2% after clinical trials showed good results from cancer treatment with cancer treatment. Modern (MRNA). Moderna stock rose more than 10% on Tuesday.

The S&P 500 gained 2.3%, and the tech-heavy Nasdaq composite rose 3.1% in morning action.

Among funds traded, the Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 3.7% and the SPDR S&P 500 ETF ( SPY ) rose 2.6% on Tuesday.

The 10-year US Treasury yield fell to 3.44% on Tuesday morning, jumping after the release of CPI data.

Meanwhile, US oil prices continued to rise on Tuesday morning, rising 1.6%. West Texas Intermediate futures traded above $73 a barrel. Natural gas futures climbed to a fifth straight advance, rising 3.7% in early trade to $6.83 per British thermal unit.

Stock Market Rally

The stock market ended on a strong note on Monday. The Nasdaq composite rose 1.3%, the S&P 500 added 1.4%, and the Dow Jones Industrial Average rose 1.6%. The Russell 2000 rose 1.2% and found support at its 50-day moving average.

Monday’s The Big Picture column commented: “Indices are in a bearish phase, trading above support levels but also testing resistance. Nasdaq remains above average 50-day moving average and the 11,000 level. But the S&P 500 met resistance at the 200-day moving average and has yet to recover from the 4,000 level.”

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Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market turmoil.

five Dow Jones Dailymoti Buy And Watch Now

Dow Jones Stocks to Buy and Watch: Caterpillar, Home Depot, UnitedHealth

Dow Jones member Caterpillar continues to move away from the 238 cup price, according to the IBD MarketSmith model approval, after a 2.5% advance on Monday. CAT stock scores a perfect 95 out of 99 on the IBD Composite Rating, per IBD Stock Checkup. CAT stock rose 2% on Tuesday.

Home improvement retailer Home Depot ended Monday about 1% below its price target of 329.77. HD stock was up more than 5% Tuesday morning, surpassing its last purchase price.

UnitedHealth Group, the health care giant, is tracking a flat base with a buy point of 558.20. The share is only 3% of the last entry. UNH stock added 0.3% on Tuesday.

Top 4 Growth To Watch In The Current Stock Market Rally

Top Stocks to Buy and Watch: Allegro, Dexcom, KLA, Brokers Interactive

The final stock price of Allegro Microsystems changed to +32.07% during the week. ALGM stock traded up around 3.5% Tuesday.

IBD Leaderboard Dexcom stock is trying to break out of the 123.46 buy point on a flat base and below the entry. Dexcom stock rose 2.3% on Tuesday.

Chip leader KLA is further ahead of the 392.60 cup entry with the handle after a 1.9% advance on Monday. Bullishly, relative strength continues to make new highs in market volatility. KLA shares rose 3.8% Tuesday.

Interactive Brokers has formed a bearish pattern with an official buy point of 81.56, according to IBD MarketSmith analysis. But the shares were below the 50-day line after Monday’s losses. Decisive returns at this level can be reasonable for stock forecasts. IBKR stock rose 1.5% on Tuesday.

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Tesla Stock

Tesla stock jumped 6.3% on Monday, giving up all of Friday’s gains and returning to the bottom. Shares rose 4% on Tuesday morning before retracing their lows to hit new 2022 lows.

In recent weeks, TSLA stock has hit its lowest level since November 23, 2020, hitting a new 52-week low of 166.19. The stock closed Monday at 167.82, about 58% of its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 1.6% on Monday, still below the key 50-day line. The 50-day line, which was a key support area, turned into a control resistance area. The stock is about 21% off its 52-week high. Apple stock rose 3.4% on Tuesday.

Microsoft jumped 2.9% on Monday, as the shares continued to hold support at the 50-day line. The software giant remains around 27% off its 52-week high. Microsoft shares rose 3.6% on Tuesday.

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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