The Dow Jones Industrial Average rose amid rising hopes for cooler inflation. Twitter fell after it slammed Tesla CEO Elon Musk. Apple is nearing an aggressive entry after surging.
A trio of stocks made bullish moves amid the positive action. Devon Energy, Restaurant Brands and NRG Energy all cleared buy points.
Volume was mixed, running lower on the Nasdaq but rising on the New York Stock Exchange vs. the same time Friday.
The yield on the benchmark 10-year Treasury note edged one basis point higher to 3.33%. West Texas Intermediate crude oil rose more than 1% to about $88 per barrel.
Inflation Hopes Boost Stock Market
There were some encouraging signs on inflation sentiment which aided stocks.
Respondents to the Federal Reserve's August Survey of Consumer Expectations are expecting the annual inflation rate to be 5.7% a year from now. This is a decline from 6.2% in July and would be the lowest level since October 2021. Falling gas prices are helping to drive optimism.
Three-year inflation expectations fell to 2.8% in August. This is tied for the lowest level for this metric since November 2020.
JPMorgan also said in a research note that it is expecting inflation to slow in the coming months. It also said a fall in commodity prices would reduce a key headwind.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32361.34 | +209.63 | +0.65 |
| S&P 500 | (0S&P5) | 4105.79 | +38.43 | +0.94 |
| Nasdaq | (0NDQC ) | 12240.66 | +128.35 | +1.06 |
| Russell 2000 | 188.97 | +1.57 | +0.84 | |
| IBD 50 | 28.43 | +0.04 | +0.14 | |
Last Update: 1:48 PM ET 9/12/2022 |
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Oanda senior market analyst Edward Moya said the progress of Ukraine in its war with Russia is also bolstering optimism.
"U.S. stocks are rising as investors anticipate inflation to show even further signs of slowing and as Ukraine's counteroffensive gains momentum in the East," he said in a note to clients.
It comes as investors brace for the release of the August consumer price index, which is due out early Tuesday.
Nasdaq Leads As Small Caps Shine
The Nasdaq gained most out of the major indexes as it rose 1.1%. Lucid Motors was a top performer here, popping more than 8%.
The S&P 500 also climbed, rising 1% and pulling away from its 50-day line. Bristol Myers Squibb was shining here as it rose around 5%.
The S&P 500 sectors were all positive, with technology and energy the best gainers. The communication services area made the slimmest gains.
Small caps were also gaining, with the Russell 2000 almost 1% higher. The Innovator IBD 50 ETF, a bellwether for growth stocks, lagged though, rising 0.1%.
Dow Jones Today: Apple Stock Surges, Eyes Buy Point
The Dow Jones industrials lagged the other major indexes but still rose almost 400 points, or 1.2%.
Key component Apple stock was the top performer and has now surged clear of the 50-day moving average and its 200-day line.
It is now aiming to top a trendline entry, though aggressive investors could use the retaking of its key averages as an entry point. It also remains shy of a handle entry of 176.25.
American Express and Leaderboard stock UnitedHealth Group were other top performers.
Twitter Stock Falls After Firm Slams Elon Musk
Twitter's ongoing legal feud with Musk took another twist on Monday. The social media firm slammed the eccentric executive's latest attempt to scupper the $44 billion deal ahead of a key vote.
Twitter shareholders are set to vote Tuesday on whether to approve or reject Musk's takeover bid even as he tries to get out of the agreement.
Murk's legal team claimed an alleged $7.75 million severance payment to whistleblower Peiter Zatko is a breach of the takeover agreement. Twitter said the latest termination deal termination letter from Musk's team is "invalid and wrongful."
Twitter stock fell nearly 2% but is holding clear of its 50-day line. In contrast, Tesla stock moved higher, gaining more than 1%. It is eying a short consolidation pattern buy point of 314.74. It also flashed an aggressive entry by passing its 200-day moving average, according to MarketSmith analysis.
Outside Dow Jones: Energy Leader Tests Buy Point
Devon Energy is in a buy zone after passing trendline entry. It is also crafting a cup-with-handle base. The 75.37 buy point offers another potential entry. The handle shows a much lighter pullback than what was witnessed inside the base.
Profits are booming for the stock, which doubles as a dividend play. Devon scored a net profit of $3.53 a share last year, and analysts on consensus now forecast $9.34 a share this year.
The bullish move saw DVN stock added to the prestigious IBD Leaderboard list of leading stocks.
Burger King franchiser Restaurant Brands finally cleared a cup-with-handle buy point of 61.19, after previously coming within a few pennies of passing the entry.
NRG Energy is continuing to show impressive relative strength after staging a breakout. The diversified utilities play is currently just below its buy zone after earlier passing a 44 cup-with-handle entry.
Overall performance is very strong, with its IBD Composite Rating of 91 putting it in the top 9% of stocks in this metric.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
