Stocks closed near the day's highs Tuesday. Investors shrugged off hotter-than-expected February consumer price index data. Artificial intelligence and chip leader Nvidia and database giant Oracle helped lift the indexes in the stock market today.
The Nasdaq closed 1.5% higher. The Dow Jones Industrial Average strengthened and added 235 points, or 0.6%, while the S&P 500 bumped up 1.1%. The small-cap Russell 2000 was almost flat after paring losses.
Volume rose on both the New York Stock Exchange and the Nasdaq compared with the same time on Monday, in preliminary numbers.
The Invesco QQQ Trust exchange traded fund added 1.4%. The Innovator IBD 50 ETF showed strength and popped nearly 3.1% on the stock market today, recouping all of Monday's loss.
The February consumer price index rose 0.4% as expected and was higher than January's 0.3% increase. The inflation index was up 3.2% on an annual basis vs. the 3.1% forecast. The February core CPI, which excludes food and energy, rose 0.4% vs. the 0.3% gain economists expected. It also came in 3.8% higher on a 12-month basis vs. the 3.7% estimate.
The higher numbers support the case for the Federal Reserve holding off on interest-rate cuts. The CME FedWatch tool shows a 12.7% chance of a cut in May and a 59.7% chance in June for a quarter-point cut in the fed funds rate from its current range of 5.25% to 5.50%.
The 10-year Treasury yield added 5 basis points to 4.16%, yet it didn't keep stocks from rising.
West Texas intermediate crude oil rose to $77.81 a barrel.
Stock Market Today: Nvidia Back On Top, Reclaims Key Level
IBD 50 name Nvidia came back to life and closed 7.2% higher, ending the day at 919.13. Shares started to recover after a two-day pullback from their all-time high of 974 on Friday. Nvidia stock lost 7.5% during a two-day slump.
Korean online e-commerce stock Coupang broke out of a cup-with-handle base with a 19.27 buy point, according to MarketSurge pattern recognition. Shares are in the 5% buy zone reaching to 20.23. Coupang shares have been rising since the company beat fourth-quarter adjusted earnings and sales estimates on Feb. 27. The company reported EPS of 8 cents vs. 3 cents in the prior year's quarter. Sales growth accelerated for the fourth straight quarter.
IBD 50 and Leaderboard name Arm Holdings reversed from morning losses and closed the day 2.2% higher. Its six-month IPO lockup period was lifted Tuesday, allowing for insiders to sell. The stock tested its 21-day exponential moving average. Arm stock had its initial public offering on Sept. 14, with a starting price of 51 a share. Arm is currently trading around 128.
The stock has rallied since the chip designer topped its fiscal third-quarter views and provided a bullish current-quarter outlook on Feb. 7. The stock gapped up nearly 48% in huge volume the next day. Shares have gained around 72% this year so far.
American Airlines slid more than 4% after the company increased its forecast for average fuel prices for the first quarter. The airline stock fell below its 200-day line, and a breakout attempt at 15.84 has failed.
3M gapped up 5% in heavy trading after the industrial and consumer products maker announced William Brown will replace Michael Roman as its new chief executive, effective May 1. Brown was the former CEO of aerospace and defense company L3Harris Technologies.
3M stock tested its 50-day and 200-day moving averages and was a big gainer on the Dow on Tuesday.
Coffee Shop Stock Breaks Out
Dutch Bros rose 5.9% and broke out above a 32.31 buy point. The coffee shop stock closed within a buy zone that goes up to 33.93. The stock has rallied 27% since Dutch Bros topped fourth-quarter adjusted earnings and sales estimates on Feb. 21.
IBD 50 stock GigaCloud Technology rebounded more than 19% on the stock market today after Monday's 10.3% sell-off. The online marketplace and logistics platform operator reports its fourth-quarter results before the market open Friday.
Oracle gapped up 11.8% in huge volume after the company beat forecasts on third-quarter earnings and reported in-line sales late Monday. Quarterly profit grew 16% on a 7% sales increase.
The database software stock broke out of a long, undefined base with a 127.54 buy point and hovered around that entry in late trading. Shares also broke a line of resistance around 117 on the stock market today.
Futures: Five Stocks Flash Buy Signals
Stock Movers Today: Southwest And Boeing Dive
On Holding gapped down 8.9% in heavy volume following the Swiss footwear maker's surprise fourth-quarter loss and lower-than-expected sales. The stock tested its 50-day and 200-day moving averages. The drop flashed a sell signal, although shares climbed back above the moving averages by the close.
Archer-Daniels-Midland popped nearly 4% even after the company missed fourth-quarter adjusted earnings and sales views. But the company gave a full-year 2024 adjusted earnings outlook that topped estimates. The agricultural products company also authorized an additional $2 billion stock buyback.
Southwest Airlines tumbled nearly 15% after announcing it would cut its full-year outlook due to delays in Boeing's 737 Max deliveries. Shares sank from a cup-with-handle base and fell below their 50-day and 200-day lines in the stock market today.
The drop flashed a sell signal. Southwest stock posted its largest one-day decrease since March 12, 2020, when it fell 15.1%, according to Dow Jones Market Data.
Meanwhile, Dow stock Boeing sank 4.3% and fell further below its 50-day line. The aircraft and aerospace stock was the biggest loser on the Dow on Tuesday. Shares have lost more than 29% thus far this year.
Bitcoin Stocks Reverse Again
The S&P Gold Shares ETF pulled back 1.1% on Tuesday after nine straight days of rising. The gold stock pulled back into the buy zone of a double-bottom base with a 191.36 buy point.
Bitcoin's price was above $71,000. Crypto exchange Coinbase reversed higher by 0.8%. Raymond James upgraded the stock to market perform from underperform.
MicroStrategy, which owns a large amount of bitcoin, rebounded and gained 7.4% on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
