Futures for the Dow Jones Industrial Average and other major indexes rose Wednesday, as investors reacted to a mild inflation report that offers further guidance on interest rates. Meanwhile, meme stocks GameStop (GME) and AMC Entertainment (AMC) cooled off on the stock market today after two straight sessions of massive gains.
X
In premarket action, Dow Jones futures rose 0.4% vs. fair value, while S&P 500 futures gained 0.5%. Tech-focused Nasdaq 100 futures also climbed 0.5% ahead of the opening bell.
Early Wednesday, the 10-year Treasury yield ticked lower to 4.36%. Further, oil prices dipped as West Texas Intermediate futures traded around $77.75 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.5%, as the SPDR S&P 500 ETF (SPY) also rose 0.5%.
GameStop shares dived 12% Wednesday morning, pausing after this week’s 179% advance through Tuesday. Meanwhile, AMC stock plunged 10% in premarket trading.
Stock Market Today: CPI Inflation Report
Early Wednesday, the Labor Department said that its consumer price index rose 0.3% on the month, with a 3.4% annual increase, in line with Econoday estimates. The core CPI rose 0.3%, with a 3.6% year-over-year increase. Those numbers, which exclude food and energy, also met estimates.
Further, the Commerce Department said that U.S. retail sales were unchanged in April, below the 0.4% growth estimate. Excluding vehicles, sales rose 0.2%, in line with Econoday estimates. And sales excluding vehicles and gasoline fell 0.1%, below the 0.1% estimate.
In the markets, key earnings movers Wednesday morning included Boot Barn (BOOT), Monday.com (MNDY) and Nextracker (NXT).
Boot Barn shares dropped 3.8% in early action, while Monday.com shares surged more than 19%. And Nextracker stock jumped 14% in premarket trading.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Dow Jones Rises
On Tuesday, the Dow Jones Industrial Average moved up 0.3%, and the S&P 500 gained 0.5%. The tech-heavy Nasdaq composite rallied 0.8%.
Investor’s Business Daily’s Big Picture column on Tuesday said: “IBD’s current recommended allocation remains at 40% to 60%. The rally attempt still looks fine, even though 2% gains for the Nasdaq and S&P 500 on April 26 and May 3 didn’t meet the qualification for follow-through days due to slightly lower volume.”
During Tuesday’s IBD Live show, the IBD Live team discussed the current trading conditions. The team discussed a wide range of stocks but centered on these sectors: gold and silver mining, chips, aerospace and defense, electric power generation and restaurants.
Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, 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
Stock Market Today:Â Best Stocks To Watch
NetApp (NTAP), PDD (PDD), Taiwan Semiconductor Manufacturing (TSM) and Tradeweb Markets (TW) — plus Dow Jones components JPMorgan Chase (JPM) and Merck (MRK) — are among the best companies to watch on the stock market today.
JPMorgan and Taiwan Semi are featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Pure Storage (PSTG) broke out past a 148.43 buy point in a double bottom. Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: JPMorgan, Merck
JPMorgan is breaking out past a flat base’s 200.94 entry following strong gains in recent weeks. Shares added 0.4% on the stock market today.
Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock was up 0.3% Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, NetApp is trading just above a 108.82 buy point in a double bottom, according to IBD MarketSurge. NetApp shares gained 0.2% ahead of the open on Wednesday.
Temu-parent PDD is just below a cup-with-handle’s 142.32 buy point following Tuesday’s 1.3% drop. Shares rose 1.5% Wednesday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of Friday’s strong monthly sales results. The stock moved up 1.3% Wednesday.
Tradeweb is squarely in its buy range past a flat base’s 108.04 buy point, with a 1.4% rise Tuesday. The stock was unchanged Wednesday.
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia (NVDA) and Tesla (TSLA) rallied 1.2% and 1.7%, respectively, Wednesday morning.
Nvidia stock rallied further above its 50-day moving average Tuesday, nearing a handle entry at 922.20. The artificial intelligence leader is an IBD Leaderboard stock.
Tesla stock rallied 3.3% Tuesday, retaking its 50-day line following last week’s losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Wednesday’s stock market open.
Apple stock added 0.6% Tuesday, closing at its highest level since Feb. 9. Shares are back above their 200-day moving average and forming the right side of a new base. The stock gained 0.1% Wednesday morning.
Microsoft shares gained 0.7% Tuesday, retaking their 50-day line. The software giant is building a flat base that has a 430.82 buy point and the 50-day line will be a key hurdle. And Microsoft stock added 0.3% Wednesday.
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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