Dow Jones surges 350 points on cool inflation report; Tesla stock is rallying

The Dow Jones industrial average jumped 350 points on Tuesday as Wall Street cheered a cooler-than-expected report on inflation. Meanwhile, Tesla shares rose after the electric-car giant raised the prices of some of its cars in China.




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October’s consumer price index was unchanged from September, a cooler than expected 0.1% monthly increase. Annual consumer prices rose 3.2%, below estimates of 3.3%. Core prices, excluding food and energy, rose 0.2% in the month, up 4% year-on-year. Both readings were below estimates.

Tesla (D.S.L.A) rallied more than 5% in morning trade after the company raised prices of its China-made Model 3 and Model Y cars. Tesla increased the price of its Model 3 base version by 1,500 yuan, or 0.6%. The entry-level version of the Model Y has gone up by 2,500 yuan, or 0.95%.

Key earnings moves of the session include: Home Depot (HD), In Holdings (onion), Tencent Music (TME) and Vipshop (V.I.P.S)

Home Depot shares rose more than 4% in early trading, while ON Holdings fell nearly 7%. Tencent Music rose 3%, while VipShop gained nearly 4% in morning action.

Dow Jones today: Oil prices, Treasury yields

After the opening hours on Tuesday, the Dow Jones industrial average rose 1.1%, while the S&P 500 gained 1.4%. The tech-heavy Nasdaq composite gained 1.8% in morning action.

Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.8%, while the SPDR S&P 500 ETF (espionage) rose 1.4% early Tuesday.

The 10-year US Treasury yield fell to 4.45% after the CPI inflation report. On Monday, the benchmark stood at 4.63%.

Oil prices added to gains on Monday as West Texas Intermediate futures rose nearly 1% to trade at $79 a barrel. WTI prices are recovering from their lowest levels since late July.


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Stock market rally

On Monday, the Dow Jones index rose 0.2%, while the S&P 500 fell 0.1%. The Nasdaq lost 0.2%.

In Monday’s Big Picture column, “Although the current interest-rate hike cycle appears to be coming to an end, the potential for higher inflation and the potential for Federal Reserve policy continue to weigh on the stock market.”

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Stock Market Today: Top Stocks to Watch

Share on the IBD Leaderboard Amazon (AMZN), with Free market (Meli), Service now (Now) and Uber Technologies (UBER) — as well as Dow Jones stocks Intel (INTC), Walmart (WMT) and United Health (UNH) — is one of the best stocks to watch in the current market uptrend.

Intel is featured in this Stocks Near a Buy Zone column. Amazon and NOW stocks are members of the IBD Leaderboard.

Dow Jones Stocks to Watch

According to IBD MarketSmith chart analysis, chip giant Intel has a 37.22 buy point in the buy range at a double-bottom base. Intel shares fell 1.6% on Monday, still above the most recent entry. INTC rose 0.5% in early Tuesday trading.

Dow Jones retail titan Walmart is in buy range above the 165.85 buy point, according to IBD MarketSmith chart analysis. Shares rose 0.9% on Monday, overcoming a buy trigger. WMT stock was up 0.3% Tuesday morning.

Health care company UnitedHealth added a handle to a major consolidation, showing a new buy point at 546.78. UNH stock lost 0.6% on Tuesday.


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Stocks to buy and watch: MELI adds handle

Amazon has moved above its 50-day moving average in recent weeks, topping out at 134.48. Right now, AMZN stock is within striking distance of the 145.86 buy point of a cup floor, while a handle may eventually form. Shares rose 1.9% on Tuesday.

MercadoLibre made it easy last week by adding a handle to the base of its forming cups. This takes the buy point to 1,398.59, according to the IBD MarketSmith model consensus. MELI stock rose nearly 5% Tuesday morning, surpassing a recent entry.

ServiceNow is out of buy range after breaking through the double-bottom entry at 607.90. A 5% buy zone rose to 638.30. This pattern can also be interpreted as a flat base with a buy point of 614.36. Now the stock is up 2.7% on Tuesday.

Amid Monday’s 1.3% advance, Uber is now extended above a buy trigger at 49.19. Uber shares added 1.3% on Tuesday morning.

Best stocks in today’s stock market action

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

Name of the company Symbol Perfect buying point Type of point of purchase
Amazon (AMZN) 134.48 Double bottom
United Health (UNH) 546.78 Handle the entry
Draft Kings (D.K.N.G) 31.10 trend line
Uber Technologies (UBER) 49.19 Double bottom
Source: IBD data as of November 13, 2023

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Fantastic Seven Stocks: Nvidia, Tesla

Among the so-called “Magnificent Seven,” Tesla traded up 5.1% in early Tuesday trading. Nvidia (NVDA) gained 1.6%. Meanwhile, the Dow Jones technical icons Apple (AAPL) and Microsoft (MSFT) rose sharply after today’s stock market opened.

Graphics-chip giant Nvidia is in buy range beyond a double-bottom 476.09 entry after solid gains in recent sessions.

Tesla stock rose more than 4% on Monday, adding to Friday’s gains. The stock is trying to overcome firm resistance at the long-term 200-day moving average. Shares are 25% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple fell 0.9% on Monday, holding an early entry at 182.34. Shares are continuing a consolidation with a 198.23 buy point. Apple shares advanced 1.3% on Tuesday.

Microsoft shares fell 0.8% on Monday, giving a buy point of 366.78 a cup. In recent weeks, shares have risen above an initial buy trigger at 346.20. MSFT shares rose 1.1% Tuesday morning.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.

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