Dow Jones Rallies 350 Points On Cool CPI Inflation Data; Disney Rises On Price Hikes

The Dow Jones Industrial Average rallied more than 350 points Thursday after the release of the Labor Department’s CPI data, one of the Federal Reserve’s most closely watched inflation gauges. Meanwhile, Disney stock rose after the company announced another round of price increases.


Consumer prices in July met estimates, rising 0.2% from June, and 3.2% from July 2022 — the latter coming in cooler than the 3.3% estimate. Core prices, excluding food and energy, moved up 0.2% from June, with a 4.8% year-over-year jump, both in line with estimates.

Meanwhile, first-time unemployment claims from the Labor Department rose to 248,000 vs. 227,000 in the previous week. They were expected to edge higher to 229,000.

Early Thursday, Alibaba (BABA) Disney (DIS), Trade Desk (TTD), Wynn Resorts (WYNN) and Yeti (YETI) were key earnings movers.

Alibaba shares jumped 3% in morning action, while Trade Desk stock lost around 2%. WYNN stock advanced 2%, as Yeti shares surged more than 15%.

Finally, Disney posted mixed results for its fiscal third quarter late Wednesday as it struggles with slowed streaming growth and high content costs. However, the company announced its second set of major price increases in less than a year. Among those hikes were more than 20% increases to the cost of the ad-free versions of Disney+ and Hulu. Disney shares rallied nearly 4% in early trade.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) traded up 1% early Thursday. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were higher after today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock rose 0.9%, while Meta shares gained 0.8% in early action.

SLB (SLB), Skechers (SKX), MercadoLibre (MELI) and Interactive Brokers (IBKR) — as well as Dow Jones stocks Boeing (BA) and Intel (INTC) — are among the best stocks to watch as the market’s uptrend comes under increasing pressure.

Tesla is an IBD Leaderboard stock, while Boeing and SLB were recent IBD Stocks Of The Day. MercadoLibre is featured in the Stocks Near A Buy Zone column. And Interactive Brokers is an IBD SwingTrader stock.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 1.05%, while the S&P 500 gained 1.1%. The tech-heavy Nasdaq composite moved up 1.2% in morning action. with China based PDD Holdings (PDD), (TCOM) and Baidu (BIDU) leading the index.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.8%, while the SPDR S&P 500 ETF (SPY) rose 0.65% early Thursday.

The 10-year U.S. Treasury yield ticked lower to 4% on the CPI inflation data, after settling at 4.01% on Wednesday.

West Texas Intermediate oil prices remain at their highest level of the year, even as WTI futures pulled back modestly to trade just below $84 a barrel.

Stock Market Action

On Wednesday, the S&P 500 fell 0.7%, slightly worse than the 0.5% drop by the Dow Jones Industrial Average. Another selloff in leading tech stocks led to an almost 1.2% drop for the Nasdaq composite on Wednesday.

Wednesday’s Big Picture column commented, “For sure, Wednesday’s drop in higher volume follows the bearish script of a stock market that displayed signs of an uptrend under notable pressure. This change in the current outlook for stocks took place exactly a week ago, on Aug. 2.”

Now is an important time to read IBD’s The Big Picture column as the stock market pulls back from this year’s highs.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks: Boeing, Intel

Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares briefly fell back into the 5% buy area that went up to 235.11 before Monday’s 3% rally sent them back out of the buy zone. BA stock moved up 0.8% Thursday morning.

Chip giant Intel continues to etch a handle onto a cup base, offering a 37.19 buy point, according to IBD MarketSmith pattern recognition. Shares are about 5% away from their latest entry. INTC stock was up 1.3% Thursday morning.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Stocks To Watch: SLB, MercadoLibre, Skechers, Interactive Brokers

SLB, formerly known as Schlumberger, is breaking out past a 58.70 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. Shares are in the buy area. SLB stock gained 0.3% Thursday morning.

MercadoLibre surged Monday, breaking out past a cup base’s 1,365.64 buy point. But two straight days of sharp losses place the e-commerce leader below that entry. MELI stock rose 2.4% early Thursday.

Skechers broke out in recent weeks when it surged above a 54.77 buy point after the company’s strong quarterly results. Shares dropped 1.4% Wednesday, about 2% below the buy point. SKX stock was up 1.1% Thursday.

IBD SwingTrader stock Interactive Brokers broke out last week past a 90.19 buy point in a consolidation, but the stock is back below that buy trigger. Shares rose 0.6% Thursday morning.

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Best Stocks In Stock Market Rally

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

Company Name Symbol Correct Buy Point Type Of Buy Point
SLB (SLB) 58.70 Cup with handle
Salesforce (CRM) 225.00 Flat base
Broadcom (AVGO) 921.78 Consolidation
Skechers (SKX) 54.77 Flat base
Source: IBD Data As Of Aug. 10, 2023

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Tesla Stock

IBD Leaderboard stock Tesla skidded another 3% Wednesday, extending a losing streak to four sessions and falling further below its 50-day line. A rebound from here would be a positive for the stock’s near-term prospects, and would eventually lead to a new buy point. But the ongoing weakness means the stock requires more time to consolidate before a new entry.

TSLA stock looked to snap its losing streak, rising 1% Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock dropped 0.9% Wednesday, heading back to its recent lows. Shares are sharply below their 50-day line. While AAPL stock is still above its 157.38 buy point, recent weakness was a sell signal, which means investors should lock in gains. Shares climbed 0.8% early Thursday.

Microsoft shares hit another new recent low Wednesday, falling 1.2%. With shares squarely below their 50-day line, the stock needs more time to consolidate before a new buy point emerges. And on Thursday morning, Microsoft shares were up 1.2%.

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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