The Dow Jones Industrial Average rallied Wednesday as Wall Street digested cooler-than-expected CPI inflation data. Up next, the Federal Reserve’s policy decision and Fed Chairman Jerome Powell’s comments loom. And GameStop (GME) stock dropped on the stock market today after the company announced it had raised more than $2.1 billion in its equity offering.
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After the opening bell, the Dow Jones Industrial Average rallied 1%, while the S&P 500 gained 0.9%. The tech-focused Nasdaq composite advanced 0.9% vs. fair value in morning trades.
Early Wednesday, the 10-year Treasury yield tumbled to 4.28%. Oil prices rebounded further from an early June low, with West Texas Intermediate futures around $78.80 a barrel.
Among U.S. exchange traded funds, the Invesco QQQ Trust (QQQ) rose 0.9% as did the SPDR S&P 500 ETF (SPY).
GameStop shares swung 4% lower Wednesday morning after the company announced it raised $2.14 billion from a share-sale program announced on Friday. GameStop said it sold 75 million shares, the maximum amount registered under the program.
Meanwhile, short seller Citron Research said it is no longer short GameStop stock. On Tuesday, GameStop stock rebounded nearly 23% after two straight days of heavy losses.
Stock Market Today: CPI, Fed Meeting
The Labor Department’s consumer price index was flat on the month, with a 3.3% annual rise. Econoday expected the CPI to rise 0.1% on the month, with a 3.4% annual increase. The core CPI, excluding food and energy, rose 0.2% in May, with a year-over-year increase of 3.4%. Both were below Econoday estimates that expected core CPI to rise 0.3% in May, with a year-over-year increase of 3.5%.
Later in the day, the Fed meeting announcement will take place at 2 p.m. ET, followed by comments from Fed Chair Powell. The central bank also will release its latest economic projections, as well as policymakers’ “dot-plot” rate outlook. At the Federal Reserve meeting in March, policymakers narrowly favored three rate cuts in 2024, but with several hawks favoring just two Fed rate cuts.
Since then, the lines have changed. Dovish policymakers will likely back just two Fed rate cuts for the year, with hawks supporting just one, if any.
Key earnings movers Wednesday morning are Casey’s General (CASY) and Oracle (ORCL).
Casey’s stock jumped 10% in morning trading, while Oracle shares surged more than 8%.
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Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average moved down 0.3%, while the S&P 500 rose 0.3%. The tech-heavy Nasdaq composite climbed 0.9% to hit another all-time high.
Investor’s Business Daily’s Big Picture column commented, “With the stock market on a confirmed uptrend, an invested percentage of 80%-100% still makes sense. While it’s getting harder to find actionable setups due to a large number of extended stocks, some opportunities are still out there.”
During Tuesday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
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: Best Stocks To Watch
ASML (ASML), Netflix (NFLX), Robinhood Markets (HOOD) and Spotify (SPOT) — plus Dow Jones components Apple (AAPL), Amgen (AMGN), Microsoft (MSFT) and Visa (V) — are among the best companies to watch on the stock market today.
Visa is featured in this Stocks Near A Buy Zone column.
In IBD MarketSurge’s “Breaking Out Today” list, Universal Display (OLED) is trying to break out past a 194.84 buy point in a cup base on the stock market today.
Check out the MarketSurge “Near Pivot” list for 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.
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Dow Jones Component Amgen
Biotech giant Amgen is building a cup-with-handle base that has a 133.10 entry. Visa is approaching a 290.96 flat-base buy point, according to MarketSurge pattern recognition. Amgen moved up 0.3%, while Visa shares climbed 1% in morning trading Wednesday.
Outside the Dow Jones index, streaming giant Netflix rose 0.6% Tuesday, moving further above the 639 cup entry. Netflix stock was up 0.8% Wednesday.
Trading platform Robinhood dropped 0.9% Tuesday, still extended above a 21.21 handle buy point. Shares bounced 3% early Wednesday.
Spotify shares remains below their 319.30 buy point in a flat base, despite a 0.3% rise Tuesday. And the stock added 0.9% early Wednesday.
Finally, ASML stock continues to trade above a handle buy point of 992.88 after last week’s gains. The 5% buy zone extends to 1,042.52. Shares rose 2% Wednesday morning.
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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 |
|---|---|---|---|
| Microsoft | (MSFT) | 430.82 | Flat base |
| Netflix | (NFLX) | 639 | Cup base |
| Spotify | (SPOT) | 319.30 | Flat base |
| ASML | (ASML) | 992.88 | Handle entry |
Source: IBD Data As Of June 10, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia (NVDA) rose 1.8%, while Tesla (TSLA) moved down a fraction on the stock market today.
Nvidia stock dropped 0.7%, continuing to hold just off last week’s all-time highs. Shares of the artificial intelligence giant are sharply above a split-adjusted alternative buy point at 97.40. The AI leader is an IBD Leaderboard stock.
Tesla stock skidded below its 50-day line Tuesday, with a 1.8% drop. Shares are more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Apple and Microsoft traded higher after Wednesday’s stock market open.
Apple stock surged more than 7% Tuesday, hitting new highs and breaking out past a cup base’s 199.62 buy point. Apple was up 0.4% Wednesday.
Microsoft shares climbed 1.1% Tuesday, bullishly regaining a flat base’s 430.82 buy point. And early Wednesday the stock added 0.3%.
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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