The Dow Jones Industrial Average and other major stock indexes traded sharply lower early Wednesday after a surprisingly hot inflation report from the Labor Department, with more testimony from Fed Chair Jerome Powell up next. Nvidia partner Super Micro Computer was a big earnings mover on the stock market today.
After the opening bell, the Dow Jones Industrial Average fell 1%, or 450 points, as the S&P 500 dropped 0.7%. The tech-heavy Nasdaq composite traded down 0.5% in early morning trades.
The 10-year Treasury yield jumped to 4.61% early Wednesday. And oil prices dropped after three days of gains, with West Texas Intermediate futures trading around $72.50 per barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 0.5%, the SPDR S&P 500 ETF declined 0.7% after the open.
A big earnings mover early Wednesday was Nvidia partner Super Micro. The company missed expectations with its preliminary results for its fiscal second quarter ended Dec. 31. It also slashed its sales outlook for the full fiscal 2025. However, it set a revenue target for fiscal 2026 that was much higher than current estimates. Super Micro stock soared 11% in morning trading.
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CPI Inflation, Powell Testimony, Earnings Movers
Ahead of Wednesday's open, the consumer price index rose by 0.5% in January, with an annual increase of 3%. It was expected to rise by 0.3%, with an annual increase of 2.9%, per Econoday estimates. The core CPI, excluding food and energy, climbed 0.4% in January, with a year-over-year rise of 3.3%. It was anticipated to rise 0.3% on the month, with a year-over-year rise of 3.1%.
During Tuesday's Congressional testimony, Fed Chair Powell said "policy restraint for longer" is likely, if the labor market remains solid yet inflation doesn't keep falling toward 2%.
Powell is scheduled to again appear before Congress Wednesday. He will answer questions in front of the House Financial Services Committee, with an anticipated start time of 10 a.m. ET. The session will begin with prepared remarks from Powell, with investors looking for further clues on the Fed's plan for interest rates.
In stocks, other earnings movers include CME Group, CVS Health, DoorDash and Lyft.
Shares of CME Group rallied 3%, while CVS Health stock jumped 12%. DoorDash stock rallied 3%, while Lyft shares plunged 15% in early action.
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Stock Market Today: Dow Jones Rises
On Tuesday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 inched higher and the Nasdaq fell 0.4%.
Among the best companies to watch in the current stock market are AppLovin, Royal Caribbean, Samsara and TJX.
Along with Apple and Nvidia, Dow Jones components making notable moves were Amazon, Home Depot and Microsoft .
Home Depot and TJX featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: Home Depot Shows New Buy Point
Dow Jones component Home Depot has added a handle to a cup base, which lowers its buy point to 426.19, according to MarketSurge pattern recognition. Shares of the home improvement giant sank 2.6% Wednesday.
Outside the Dow, AppLovin is approaching a cup base's 417.63 buy point after clearing an early entry at 371.77 in recent sessions. Shares moved up 0.3% Wednesday.
Cruise operator Royal Caribbean undercut a 258.79 flat-base entry after three days of losses. The stock ended Tuesday in a test of short-term support at its exponential 21-day moving average. It declined 0.9% Wednesday morning.
Samsara shares rallied for a sixth straight session Tuesday, up 0.4%. The stock is approaching a cup base's 57.51 buy point but moved down 1.5% early Wednesday. It was Tuesday's IBD Stock Of The Day.
Retailer TJX is below a 128 buy point in a flat base, as the stock continues to find support at its 50-day moving average. TJX stock was off 0.6% in morning trades Wednesday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| AppLovin | 417.63 | Cup base | |
| Home Depot | 426.19 | Cup with handle | |
| Royal Caribbean | 258.79 | Flat base | |
| TJX | 128.00 | Flat base |
Source: IBD Data as of Feb. 11
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Nvidia, Tesla Stock
Artificial intelligence titan Nvidia declined 0.6% Tuesday, snapping a five-day win streak. Shares of the Dow Jones component are bumping against their 50-day moving average, a key resistance level to watch. Nvidia stock moved down 0.5% in morning action Wednesday.
Tesla plunged 6.3% Tuesday, its lowest close since Nov. 15. Shares are nearly 33% off their 52-week high. But Tesla stock rebounded 2.4% in early morning trading Wednesday.
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Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon, which fell just below a 233 buy point Tuesday. Shares slipped 1.5% early Wednesday.
Apple stock, which rallied 2.2% Tuesday, continues to consolidate below the 50-day line. Shares fell 0.5% Wednesday.
Finally, software giant Microsoft moved down 0.9% Wednesday. Shares have plunged below their 50-day line in recent weeks.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
