The Dow Jones Industrial Average kept the party going by climbing in morning action Wednesday as the markets digested more cooler-than-expected inflation data. Meanwhile, industry giant Target surged on strong earnings results.
The Labor Department's October Producer Price Index fell 0.5% on the month, sharply below estimates for a 0.1% rise, with an annual increase of 1.3%, also below expectations. Core producer prices, excluding food and energy, were unchanged on the month with an annual rise of 2.4%. That number also was below forecasts.
Further, the Commerce Department released U.S. retail sales figures. Sales fell 0.1% in October, slightly better than the expected 0.3% drop. That resulted in the first month-over-month drop since March.
One big retailer, Target, soared in morning trade. Shares of the big-box player surged 17% after the company reported better-than-expected earnings and sales results for the third quarter.
Other earnings movers for the session include Advanced Auto Parts and JD.com. AAP stock tumbled nearly 8%, while JD shares jumped 7% in morning action.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average climbed 0.4%, while the S&P 500 moved up 0.45%. The tech-heavy Nasdaq composite gained 0.5% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.5%, while the SPDR S&P 500 ETF moved up 0.45% early Wednesday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.53% after the PPI inflation report. On Tuesday, the benchmark had settled at 4.44%.
Oil prices continued to consolidate after Monday's gains, as West Texas Intermediate futures edged lower, trading just above $78 a barrel. WTI prices are bouncing back from their lowest levels since late July.
Stock Market Rally
Wednesday's gains came on the heels of a market bonanza. On Tuesday, the Dow Jones Industrial Average rallied 1.4%, while the S&P 500 moved up 1.9%. The Nasdaq advanced 2.4%.
Tuesday's Big Picture column commented, "Inflation remains elevated, but the new data eliminated the chance of another interest rate hike by the Federal Reserve through the Jan. 31 meeting, according to CME FedWatch. Now, futures traders think there's a better-than-60% chance that the Fed could start cutting rates as early as May."
Now is an important time to read IBD's The Big Picture column after the recent gains. Be sure to read how to invest during the ongoing stock market uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
IBD Leaderboard stock Amazon, along with MercadoLibre, ServiceNow and Toll Brothers — as well as Dow Jones stocks Intel, Walmart and UnitedHealth — are among the best stocks to watch in the current market rally.
MercadoLibre and Nvidia were featured in this Stocks Near A Buy Zone column. Amazon and NOW stock are members of IBD Leaderboard.
Dow Jones Stocks To Watch
Chip giant Intel is in buy range past a 37.22 buy point in a double-bottom base, according to IBD MarketSmith chart analysis. Intel stock rallied 3.1% Tuesday, further past the latest entry. INTC rose 0.8% early Wednesday.
Dow Jones retail titan Walmart is in buy range past a 165.85 buy point. WMT stock gained 0.8% Wednesday morning.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock lost 0.4% Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: Toll Brothers Breaks Out
Amazon made a bullish move back above its 50-day moving average line in recent weeks, topping an early entry at 134.48. Now, AMZN stock is breaking out past a cup base's 145.86 buy point. Shares moved up 0.6% Wednesday.
MercadoLibre rallied past a 1,398.59 buy point, according to IBD MarketSmith pattern recognition, during Tuesday's 3.8% gain. MELI stock was up 0.8% Wednesday morning.
ServiceNow is moving out of buy range past a 607.90 entry in a double-bottom base. The 5% buy zone went up to 638.30. The pattern also may be interpreted as a flat base with a 614.36 buy point. NOW stock inched lower another 0.4% Wednesday.
Homebuilder Toll Brothers leapt past a cup-with-handle's 82.39 buy point, with a 8% surge Tuesday. TOL stock is in the buy zone that goes up to 86.51. Shares fell 0.5% Wednesday morning.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | 145.86 | Cup base | |
| UnitedHealth | 546.78 | Handle entry | |
| Toll Brothers | 82.39 | Cup with handle | |
| MercadoLibre | 1,398.59 | Cup with handle |
Source: IBD Data As Of Nov. 14, 2023
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Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla traded up 2.2% early Wednesday, while Nvidia lost 0.9%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
Graphics-chip giant Nvidia is in buy range past a double-bottom base's 476.09 entry after solid gains in recent sessions.
Tesla stock rallied more than 6% Tuesday, extending a win streak to three sessions. Shares are facing resistance around their 50-day line after retaking the 200-day line earlier this week. Shares are around 20% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple gained 1.4% Tuesday, closing at its highest level since Sept. 5. Shares are above an early entry at 182.34, as they continue to trace a consolidation that has a 198.23 buy point. Apple shares tacked on 0.5% Wednesday.
Microsoft stock moved up 1% Tuesday, retaking a cup base's 366.78 buy point and hitting an all-time high. In recent weeks, shares rose above an early buy trigger at 346.20. MSFT stock climbed 0.1% Wednesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
