The Dow Jones Industrial Average traded fractionally lower at 1:30 p.m. ET Tuesday, ahead of Wednesday's CPI inflation report. Boeing rose on a huge 737 Max 10 order from Ryanair. PayPal sold off hard after earnings. Palantir rose after strong earnings and outlook for its AI platform.
The S&P 500 fell 0.3% while the Nasdaq lost 0.5%. The small-cap Russell 2000 pared early losses but was still down 0.4%. The Innovator IBD 50 ETF slipped 0.1%. Volume was higher on the NYSE and lower on the Nasdaq vs. the same time on Monday.
Datadog, Zscaler, Palo Alto Networks and Atlassian rose. IBD Leaderboard stock HubSpot also gained ground and is extended. Salesforce rose for the third day in a row. Dynatrace rose in a cup base with a buy point of 48.10.
Crude oil rose to $73.50 per barrel. The yield on the benchmark 10-year Treasury note was flat at 3.52%.
Economists looking at Wednesday's premarket CPI release expect a 0.4% rise in inflation in April after March's cool 0.1% bump. March's annual rate of 5% is expected to remain unchanged. Though still much higher than the Fed's target rate, traders expect a rate pause in June. The CME FedWatch Tool shows an 83.4% chance of rates remaining unchanged at the June meeting.
Talks about raising the debt ceiling before June 1 are on watch as President Joe Biden meets congressional leaders to discuss the $31 trillion cap. Default risk will lead to tighter lending in the near term, potentially creating a domino effect on corporate investment and growth. On Tuesday, New York Fed President John Williams said he remains focused on "assessing the evolution of credit conditions and their effects on the outlook for growth, employment, and inflation."
Earlier Tuesday, Fed governor Phillip Jefferson spoke about the economy slowing down in an "orderly fashion," observing that "inflation will start to come down and the economy will have the opportunity to continue to expand." He also noted that credit tightening is "typical" for this stage in the economic cycle and a "natural part" of the Fed's tightening.
Markets also await Fed governors Christopher Waller's comments on Thursday and James Bullard on Friday.
Stocks Moving Today Outside Dow Jones
Palantir surged over 20% after strong earnings in early afternoon trading.
The enterprise software company expects to be profitable for the rest of the year due to strong demand for its artificial intelligence platform. Shares sliced above the 50- and 200-day moving averages, offering an entry at 10.41. Palantir works with governments and corporations that could benefit from AI software.
PayPal fell below its 50-day line after the digital payments company beat views but lowered its 2023 outlook.
Lucid fell after the EV maker saw widening losses and posted a secondary offering.
Shockwave Medical rose nearly 6%. Shares are carving a handle with an entry at 300.10.
Medical supplies distributor McKesson rallied after an earnings beat and is close to a breakout at 401.88.
Airbnb earnings are on deck later today, along with Warren Buffett stock Occidental Petroleum and Celsius. ABNB stock rebounded in strong volume Monday from the 50-day moving average and is approaching a buy point of 144.73.
Plug Power fell as losses for the fuel-cell maker widened in the first quarter. Under Armour also lost ground after the footwear and accessories maker lowered its profit forecast.
Skyworks Solutions plunged below its 200-day line in huge volume on a weak outlook.
Futures: Five Big Earnings Movers Late
Stocks On Watch
Dow Jones component Walt Disney is on deck Wednesday. DIS shares are in a long consolidation with a possible entry at 126.58.
Duolingo is also on watch for earnings Wednesday. Shares of the language learning website have mounted the 50-day line rapidly ahead of earnings. Palo Alto Networks and Workday are rising with earnings due in late May. WDAY stock is in a correction while PANW may offer an early entry at 203.54.
Wynn Resorts reports Q1 results after Tuesday's closing bell, with expectations for break-even earnings per share on $1.37 billion in revenue.
Earnings are forecast to surge 170% in fiscal 2024. WYNN shares have risen nearly 36% so far in 2023.
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