The major indexes remained mixed in the noon hour ET on Monday, as the stock market sought direction. Investors are gearing up for inflation data and the start of the second-quarter earnings season this week.
The Nasdaq dipped 0.3% at midday. The Dow Jones Industrial Average gained 0.4% and the S&P 500 shed 0.1%. The small-cap Russell 2000 fared much better, rising 1.2%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF fell 0.5%.
The Innovator IBD 50 ETF rallied 2%, thanks in large part to DraftKings. The online betting platform powered up 6.8% on top of Friday's 5.6% gain, after Oppenheimer raised its price target to 36 from 30 and maintained its outperform rating.
The stock is above the 20% profit zone of the 21.62 buy point of a cup base. It is also extended from support at the 10-week moving average that took place last week.
NYSE and Nasdaq volume were higher compared with the same time on Friday.
The June consumer price index is due Wednesday at 8:30 a.m. ET. Econoday's consensus shows a 0.3% monthly increase for both overall and core prices. Core prices exclude food and energy.
Economists expect year-over-year overall prices to increase 3.1%, while core prices are forecast to rise 5%.
Thursday, investors get the June producer price index. Producer prices are expected to rise 0.2% compared with a drop of 0.3% in May. The yearly rise is projected at 0.4%. The June core numbers should increase 0.2% on a 2.8% annual pop. So far, data has not been soft enough to dampen Fed enthusiasm for further rate hikes.
The CME FedWatch Tool showed over 90% odds for a quarter-point hike at the July 26 Fed meeting, and an over 70% chance of an additional quarter-point rate hike at the September meeting.
The 10-year Treasury yield edged down 4 basis points to 4.01%.
Stock Market Action On Analysts' Moves
Charles Schwab stock rose 1.2% after JPM Securities upgraded the wealth management and brokerage firm to outperform from market perform with a 73 price target. Shares are rebounding from a sell-off around the time of the Silicon Valley Bank collapse. The company reports Q2 earnings next week.
Shockwave Medical surged 5.8% in heavy volume, after Morgan Stanley upgraded the medical device maker to overweight from equal weight and raised its price target to 335 from 291.
Recent IPO stock Cava rallied nearly 9% after several analysts initiated coverage on the Mediterranean fast-casual restaurant chain. Those included JPMorgan, which gave it an overweight rating and 45 price target. Cava is forming an IPO base.
Advance Auto Parts reversed course to gain 0.6%, after Atlantic Equities downgraded the auto parts retail stock to an underweight rating from neutral, and cut its price target to 50 from 130.
Consumer products stock Helen of Troy gapped up over 16% in heavy volume, breaking out of a cup base with a 125.99 buy point.
The company reported better-than-expected May-ended quarterly earnings and sales numbers. The company owns brands including Vicks, OXO and Braun. It said the Bed Bath & Beyond bankruptcy and lower consumer demand attributed to the 6.6% sales drop.
Fox eased from larger losses and is now down 0.6%, after Wells Fargo downgraded the media stock to underweight from equal weight and lowered its price target to 31 from 35.
Other Movers Include FMC, MercadoLibre
Agricultural chemical maker FMC tumbled over 12% in huge volume after the company cut its second-quarter and full-year 2023 sales forecast. FMC said it experienced "abrupt and unprecedented reductions in channel inventory by customers," according to the company's statement. FMC is the S&P 500's biggest loser today.
MercadoLibre gapped down 6.4% in heavy volume after BofA Securities downgraded the Latin American e-commerce platform to a neutral rating from a buy, and slashed its price target to 1,350 from 1,680. The stock fell below its 200 day moving average.
Notable companies reporting second-quarter earnings this week include Delta Air Lines on Thursday and Wells Fargo, JPMorgan Chase, BlackRock, Citigroup and UnitedHealth Group on Friday.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
