Stock Market Today: Dow Jones Futures Slide 300 Points On Hot CPI Data; ARM, AI Stocks Dive


Futures for the Dow Jones and other major indexes tumbled Tuesday, as Wall Street reacted to a hotter-than-expected key inflation report that could telegraph future interest rates. Heavy sellers included Arm Holdings (ARM) and two fellow artificial intelligence stocks that reported earnings on the stock market today: Arista Networks (ANET) and Cadence Design Systems (CDNS).




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Before the opening bell, Dow Jones futures fell 0.9%, or more than 300 points, while S&P 500 futures were down 1.3%. Tech-heavy Nasdaq 100 futures declined 1.7% vs. fair value.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 1.7%, while the SPDR S&P 500 ETF (SPY) lost 1.3%.

The 10-year Treasury yield jumped to 4.28%. Further, oil prices extended their recent gains, as West Texas Intermediate futures rose 0.8%. WTI futures traded above $77.50 a barrel.

Stock Market Today: CPI Inflation Data, Earnings

The Labor Department’s January consumer price index rose 0.3% on the month, with an annual increase of 3.1%. Both were hotter than expected. The CPI was expected to rise 0.2% on the month, with an annual increase of 3%. Further, the core CPI inflation rate climbed 0.4% in January, with a 3.9% annual increase. Wall Street anticipated a monthly rise of 0.3% in January, with a 3.7% annual increase.

On the earnings front, key movers included Arista Networks, Cadence Design Systems, Coca-Cola (KO), Datadog (DDOG) and Shopify (SHOP).

Arista shares dived more than 8% even though the provider of cloud networking solutions topped earnings and sales estimates. Cadence stock tumbled around 8% in premarket trade. The stock remains above a 279.33 flat-base entry.

Coke shares climbed more than 1% in premarket action, while Datadog plunged more than 7%. And Shopify dived more than 8% in early trades.

Elsewhere, Arm stock dived nearly 8%, giving up part of Monday’s 29% surge.

Dow Jones Rises

On Monday, the Dow Jones Industrial Average moved up 0.3% and the S&P 500 slipped 0.1%. The tech-heavy Nasdaq composite dropped 0.3%.

Monday’s Big Picture column commented, “But last week saw a torrent of breakouts — nearly three dozen, according to the Recent Breakouts list in IBD MarketSmith. That means bulls got more ammunition to reload and take shots at new opportunities. Last week’s wave of breakouts didn’t have any Microsofts, Amazons or other heavyweights. But the overall quality of the breakouts was still good. The average Composite Rating was 94.4 and the average EPS Rating 86.5. Most have A or B SMR Ratings.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.


Learn How To Time The Stock Market With IBD’s ETF Market Strategy


Best Stocks To Buy And Watch In Stock Market Today

Lennar (LEN), MongoDB (MDB), Samsara (IOT) and UiPath (PATH) — plus Dow Jones members Procter & Gamble (PG) and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.

Samsara and UiPath were featured in this Stocks Near A Buy Zone column.


Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard


Dow Jones Stocks: P&G At Buy Point

Consumer products giant Procter & Gamble declined 0.3% Monday, falling further below a 158.38 buy point in a cup base, according to IBD MarketSmith pattern recognition. Procter shares inched higher Tuesday.

Discount retail leader Walmart is in buy range past a 163.57 entry in a cup with handle, even as the stock rose 0.6% Monday. The stock was flat early Tuesday.


4 Top Growth Stocks To Watch In The Stock Market Rally


Lennar Breaks Out

Homebuilder Lennar is breaking out past a flat base’s 156.01 buy point, with a 3.2% rally Monday. Lennar shares were down 4% early Tuesday.

Software leader MongoDB is out of buy range past a 442.84 buy point, despite a 2.6% drop Monday, according to IBD MarketSmith. MongoDB shares dropped 5.8% Tuesday.

Samsara rebounded bullishly from its 50-day line last week. But shares reversed lower Monday, falling 2.8%. The stock is near an official entry at 36.91 after giving up an early buy trigger at 35.18 during Monday’s reversal. Samsara shares lost 4% Tuesday morning.

UiPath rallied 2% Monday, breaking out past a 26.53 cup-base entry. Shares closed in buy range. UiPath shares declined 6.4% early Tuesday.


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Best Bets On Stock Market Today

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Novo Nordisk (NVO) 105.69 Flat base
Merck (MRK) 119.65 Cup base
DraftKings (DKNG) 39.35 Cup base
Spotify (SPOT) 202.88 Flat base
Source: IBD Data As Of Feb. 12, 2024

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


Magnificent Seven Stocks: Nvidia, Tesla

Magnificent Seven stocks Nvidia (NVDA) fell 2% and Tesla (TSLA) dropped around 2.6% in premarket action Tuesday.

Nvidia shares hit fresh record highs and closed more than 40% past a 505.48 buy point in a flat base after a Jan. 8 breakout move.

Tesla snapped a four-day win streak Monday but is still rebounding from its lowest level since May 2023.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded lower ahead of Tuesday’s stock market open.

Apple is forming a new double-bottom base with a new buy point at 196.38. But Apple stock must first retake the key 50-day moving average, a potential resistance level. Shares fell 1% Tuesday.

Microsoft shares remain out of buy range past a 384.30 buy point in a flat base. The software giant dropped 2% Tuesday morning.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.

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