Dow Jones Surges 500 Points On Cool CPI Inflation Data; Elon Musk Sells More Tesla Stock

The Dow Jones Industrial Average surged 500 points after a cool inflation report — the Labor Department’s consumer price index, or CPI. Tesla Chief Executive Elon Musk sold nearly $7 billion worth of Tesla stock.


Celsius (CELH), coinbase (COIN), Grocery Outlet (GO), plug-power (PLUGS), Roblox (RBLX), super microcomputer (SMCI), Trade Desk (DTT) and UnitySoftware (U) were key earnings movers Wednesday.

Celsius shares climbed almost 7%. COIN stocks rally 2%. Grocery Outlet shares added about 1%, while Plug Power rose 10%. Roblox stock skidded more than 5% on weak earnings results. Super Micro shares climbed around 14%. Trade Desk emerged more than 29% on strong guidance. Lastly, Unity rose nearly 3% in early trade.

Tesla (TSLA) traded more than 4% higher early Wednesday. Elsewhere, Dow Jones tech leaders Manzana (AAPL) and microsoft (MSFT) both notched solid gains before today’s stock market open.

waltdisney (DIS) gained 3.3%, leading the Dow Jones Industrial Average ahead of its fiscal third-quarter report, due after the close.

In the current healthy stock market environment, Dow Jones stocks Coke (KO) and United Health (UNH)—as well as Monolithic Power Systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) — are among the top stocks to buy and watch.

UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie’s and Vertex were featured in this week’s Stocks Near A Buy Zone column. Monolithic Power was Thursday’s IBD Stock Of The Day. Vertex is also an IBD SwingTrader idea.

Dow Jones Today: Treasury Yields, Oil Prices, CPI Inflation Rate

The Dow Jones Industrial Average rose 1.5%, and the S&P 500 moved up 1.7%. The tech-heavy Nasdaq composite surged 2.3% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 2.3%. And the SPDR S&P 500 ETF (SPY) gained 1.7%.

The 10-year Treasury yield tumbled to 2.74% Wednesday morning after the CPI inflation data. The 10-year Treasury yield is trying to rebound after hitting its lowest level since early April last week.

Meanwhile, US oil prices are also trying to rebound from recent losses. But West Texas Intermediate futures slid almost 1% on Wednesday, trading around $90 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.

The Labor Department’s CPI inflation rate came out early Wednesday. Consumer prices were flat in July, cooler than estimates that called for a 0.2% rise and down from June’s 1.3% jump. Inflation rose 8.5% in July from a year ago, below the 8.7% consensus estimate. The Producer Price index, which measures wholesale inflation, will be out Thursday.

Stock Market Rally

After giving back a 1.6% intraday gain Monday, the Nasdaq composite fell another 1.2% Tuesday. The Dow Jones industrials and S&P 500 fell 0.2% and 0.4%, respectively.

Tuesday’s The Big Picture column commented, “At this point, trimming some winners to raise some cash makes sense. There’s nothing wrong with being proactive, even with the stock market still in a confirmed uptrend. After a strong move off lows, some consolidation for the indexes should be expected. Keep an eye out for new buys, but don’t settle for second- or third-tier stocks. Focus on the quality merchandise.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Coca-Cola, UnitedHealth

Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Meanwhile, an early entry due to a handle is also in play at 65.14. Shares are testing their 50-day line recent losses. KO stock gained 1.1% Wednesday.

Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base’s 518.80 buy point amid Tuesday’s 0.1% gain, according to IBD MarketSmith chart analysis. The 5% chase zone goes up to 544.74. Shares rose 0.55% Wednesday.

UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Watch: Monolithic, Ollie’s, Vertex

Thursday IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation with a 580.10 buy point. Meanwhile, shares fell below 514.80 early entry during Tuesday’s 4.6% skid. Keep an eye out for a potential handle to offer another alternate buy point. Shares were up 2.7% Wednesday.

Ollie’s Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 10% away from that entry. Shares were up 2.6% early Wednesday.

IBD SwingTrader stock Vertex Pharmaceuticals rallied 1.7% Tuesday, moving further out of buy range past a cup with handle’s entry at 279.23. The 5% chase zone went up to 293.19. The stock’s June 23 breakout is back on track following last week’s Q2 earnings results. Vertex stock climbed 0.8% morning Wednesday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock declined 2.4% Tuesday, falling to its lowest level since July 28. Late Tuesday, regulatory filings showed that Musk sold another 7.92 million shares of Tesla stock worth nearly $7 billion. Shares rose more than 4% Wednesday morning.

Last week, Tesla shares reached their highest level since early May, but are now finding staunch resistance around their 200-day line, which is a key level to watch. The stock is more than 30% off its 52-week high. A 3-for-1 stock split will occur on Aug. 24.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares inched higher Tuesday, snapping a three-day losing streak. The stock is building the right side of a cup base that has a 179.71 buy point. Shares rose 1.7% Wednesday morning.

Microsoft rose 0.7% Tuesday, ending a two-day skid. The software giant is still ranging below its long-term 200-day line. The stock on Tuesday closed about 19% off its 52-week high, and moved up 2% early Wednesday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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