The Dow Jones industrial average edged lower after another key inflation report — the producer price index — came on Wednesday in the wake of a stock market drop from a warm consumer price index reading. Meanwhile, the 10-year Treasury yield is on pace to hit an 11-year high in June.
The US Labor Department said the manufacturing index, or PPI, fell 0.1% in August and compared to the previous month. Total sales inflation rose 8.7% from a year ago, down from July’s 9.8% surge and in line with Econoday estimates.
On Tuesday, the CPI inflation rate That cut to 8.3%, a pullback from July’s 8.5% and June’s 9.1% rates, amid falling gas prices. The Consumer Price Index rose 0.1% on the month. But Wall Street economists had expected the CPI to show a 0.1% monthly decline, bringing the CPI inflation rate down to 8%. Worse, core inflation rose to a better-than-expected 6.3%.
as a consequence, Markets believe it now There is a 38% chance of a full percentage point hike at the Federal Reserve’s next meeting. Before Tuesday, Wall Street had not placed odds on that possibility.
Meanwhile, the electric vehicle leader Tesla (D.S.L.A) traded up 0.5% on Wednesday. in the middle Dow Jones IndustrialsTech Titans Apple (AAPL) and Microsoft (MSFT) was then higher Today’s stock market Open. Merck (MRKBerenberg rose 0.7% after upgrading the stock to buy.
In the current volatility of the market, Arista Networks (On the sides), DoubleVerify (TV), Palo Alto Networks (PANW) and Pure savings (PSTG) — as well as Dow Jones stock Chevron (CVX) — are among the best stocks to buy and watch. Remember that increased market volatility is a good reason for investors to be more defensive, especially after Tuesday’s market dive.
DoubleVerify is a IBD Leaderboard Stock. Chevron and Palo Alto were there This week’s stocks are featured in the Near a Buy Zone column.
Dow Jones today: Treasury yields, oil prices
After opening hours on Wednesday, the Dow Jones industrial average was down 0.1%, while the S&P 500 moved less than 0.1%. The tech-heavy Nasdaq composite lost 0.15% in morning action.
The 10-year Treasury yield rose to 3.43% on Wednesday morning. On Tuesday, the 10-year Treasury yield hit its highest closing level since June 14 and is just shy of the 11-year high of 3.48% hit on June 14.
US oil prices fell on Wednesday as they continued to consolidate after recent gains. West Texas Intermediate futures traded below $87 a barrel.
Stock market rally under pressure
On Tuesday, all three major stock indices broke below their 50-day moving averages, which would return to the September 6 lows. The Dow Jones industrial average fell 3.9%, while the Nasdaq fell 5.2%.
Before the inflation report, Tuesday’s The Big Picture column Commented, “It’s better to stay out of the way of the market at this stage. Evaluate your current holdings. If you have some names that are profitable and holding above short-term support levels, it’s okay to hold.” Leaderboard The portfolio, for example, we still have Invesco Solar (TAN) because it is just above our entry and above its converging 10- and 21-day lines.”
A great way to discover emerging stock market leadership Relative strength line. The RS line measures the price performance of a stock against the S&P 500. If the stock outperforms the broader market, the RS line is upward sloping. If a stock lags the broader market, the tax is lower.
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Dow Jones stocks to watch: Chevron
Dow Jones stock Chevron fell 1.9% on Tuesday, but is still above support at a key 50-day line. The stock is nearing its recent buy point at 166.93 – according to IBD MarketSmith Chart Analysis – Amid strong performance of energy stocks so far this year. The stock rose 1% in early Wednesday trading.
CVX stock Showing a strong 97 out of a perfect 99 IBD Joint Assessment, for one IBD Stock Checkout. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Key stocks to watch: Arista, Double Verify, Palo Alto Networks, Pure Storage
Arista Networks added a handle to the double-bottom floor, placing the correct entry at 132.97. IBD MarketSmith Chart analysis. Arista’s relative strength line is close to a maximum. ANET shares were up 0.1% in early Wednesday trading.
Share on the IBD Leaderboard DoubleVerify is bottoming above the 28.07 buy point. Shares are in a 5% buy zone heading up to 29.47. DV stock was down 0.1% on Wednesday morning.
Cybersecurity leader Palo Alto Networks is nearing a 578.89 buy point in a cup-with-handle, despite Tuesday’s 3.4% decline. An initial entry is also playing around 560 due to the trendline, step IBD Leaderboard commentary. Shares rose 0.5% on Wednesday.
Pure Storage approaches a buy point of 31.62 in a cup with handle. Meanwhile, an initial entry is also in play after stocks move above a downtrend line within that handle. Shares fell 0.3% on Wednesday.
Tesla stock It slipped 4% on Tuesday, snapping a five-day winning streak. Shares gave up their 200-day line, which they recovered. The electric vehicle company rose 0.5% on Wednesday morning.
Shares are 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones Stocks, Apple shares tumbled 5.9% on Tuesday, breaking back below their 50- and 200-day lines. The stock is about 14% away from a buy point at 176.25 a cup with handle. Apple shares rose 0.3% on Wednesday.
Microsoft fell 5.5% on Tuesday, ending a four-day winning streak. The software giant is below its 50- and 200-day lines. Shares are 28% off their 52-week high. Shares of Microsoft were up 0.1% on Wednesday morning.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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