Dow Jones Rises On Hot Inflation Data, Fed Minutes Next; Nvidia Rallies On PT Hike

The Dow Jones Industrial Average rose Wednesday after the early release of the Labor Department’s Producer Price Index, a key inflation gauge, and as Wall Street awaited a Federal Reserve report. Meanwhile, Nvidia stock rallied after a price-target hike.


Prices paid to producers of goods and services rose 0.5% in September, above the 0.3% estimate, vs. a 0.7% rise in August. On the year, the PPI index rose 2.2%, also hotter than expected, vs. August’s 1.6% increase.

Later in the day, minutes from the Federal Reserve’s Sept. 19-20 policy meeting are due at 2 p.m. ET.

Nvidia (NVDA) advanced nearly 1% after TD Cowen hiked its price target from 600 to 700. NVDA stock is building a new base that has a 502.66 buy point.

Dow Jones Today: Oil Prices, Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite climbed 0.4% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%, while the SPDR S&P 500 ETF (SPY) moved up 0.2% early Wednesday.

Wednesday’s early action also showed the yield on the 10-year U.S. Treasury bonds falling further, to 4.6%.

Oil prices continued lower Wednesday following Tuesday’s modest drop. West Texas Intermediate futures traded just below $85 a barrel.

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Stock Market Rally

On Tuesday, the Dow Jones Industrial Average climbed 0.4%, while the S&P 500 rose 0.5%. The tech-heavy Nasdaq composite moved up 0.4%.

Tuesday’s Big Picture column commented, “Another up session Tuesday proved encouraging after Friday’s follow-through day for the Nasdaq composite. But with the Nasdaq composite and S&P 500 still below their 50-day lines, IBD’s recommended invested percentage stays at 20%-40%. It’s OK to increase exposure gradually, but only if new buys are giving positive feedback by making progress from your entry.”

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook showing a new uptrend. Be sure to read how to handle the newfound stock market strength and raise your exposure methodically.

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

Stock Market Today

Tesla (TSLA) rose 0.5% early Wednesday, while Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) traded mixed after today’s stock market open.

IBD Leaderboard member Arista Networks (ANET), DraftKings (DKNG), Meta Platforms (META) and Modine Manufacturing (MOD) — as well as Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) — are among the best stocks to buy and watch in the new stock market uptrend.

Meta is an IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.

Dow Jones Stocks: Chevron, UnitedHealth

Dow Jones oil giant Chevron remains above its 50-day line after sharp gains Monday. In recent weeks, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. CVX stock lost 1% early Wednesday.

Health insurer UnitedHealth closed Tuesday still in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis. The 5% buy area goes up to 541.65. UnitedHealth reports third-quarter results ahead of Friday’s market open. UNH stock dipped 0.4% Wednesday.

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

Stocks To Buy And Watch: Meta In Buy Range

Arista reversed down 0.85% Tuesday, snapping a four-day win streak. A bullish rebound from that level in recent sessions places the stock in a new buy area. Meanwhile, shares are approaching a 198.70 buy point out of a flat base. ANET reports third-quarter results Oct. 30. Shares dropped 1.1% early Wednesday.

DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares regained their 50-day moving average during Tuesday’s 2.3% rise. DKNG stock rose 0.7% Wednesday morning.

Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. Its cup base has an official buy point at 326.20. The company reports third-quarter results Oct. 25. META stock climbed 0.6% Wednesday.

Tuesday’s IBD 50 Stocks To Watch pick, Modine, is trying to break out past a 49.60 buy point in a flat base, with a 1.1% rise Tuesday. Shares finished just below their entry. MOD stock was up 0.4% Wednesday morning.

Best Stocks In Today’s Stock Market Action

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
Meta Platforms (META) 312.87 Handle entry
Caterpillar (CAT) 293.88 Flat base
Duolingo (DUOL) 167.53 Double bottom with handle
DraftKings (DKNG) 32.65 Cup with handle
Source: IBD Data As Of Oct. 10, 2023

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Tesla Stock Hits Buy Point

Tesla stock raced 1.5% higher Tuesday, closing at its highest level since Sept. 19. Shares are above their 50-day line and near an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 6% away from that entry.

Tesla reports quarterly results Oct. 18. Shares moved up 0.5% early Wednesday in morning trades.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple moved down 0.3% Tuesday, snapping a four-day win streak. Shares are trying to retake their 50-day line. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point.

Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares dropped 0.4% early Wednesday.

Microsoft shares lost 0.4% Tuesday, still above their 50-day line after solid gains in recent sessions. A new base is forming, with an early entry at 340.86. Earnings results are out Oct. 24. And on Wednesday morning, MSFT stock was up 0.9%.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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