Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. The CPI inflation report and retail sales figures for April are expected to be released before the start of trading on Wednesday.
X
Stocks rose modestly to solidly on Tuesday, gaining momentum in the afternoon as the Nasdaq hit a new record high for the major indexes, despite a record close for the Nasdaq Composite. Although the producer price index in April exceeded expectations, the statistics for March were revised significantly downward. It also generally sheds light on the various factors that influence the Fed’s preferred inflation measure, the core PCE price index. Fed Chairman Jerome Powell noted in his speech Tuesday that the PPI numbers are “mixed.”
meme stocks such as game stop (GME) and AMC Entertainment (AMC) has broken out of its high range, but has soared again.
Nvidia (NVDA) is moving toward a buy point ahead of its financial results in a week.
Embraer (ERJ), pure storage (PSTG), On hold (Onon), cloud strike (CRWD) and oracle (ORCL) other buy signals broke or flashed.
revenue
New Holdings (Nuu) on Tuesday night exceeded its first-quarter revenue target. However, Brazilian fintech stocks rose modestly, falling far short of buy points.
China’s e-commerce giant JD.com (J.D.) and India-based travel sites make my lip (MMYT) to report early Wednesday morning.
Nvidia stock is on IBD Leaderboard, Embraer and MakeMyTrip stocks are on the leaderboard watchlist. Nvidia, CrowdStrike, and Pure Storage stocks are listed on SwingTrader. Nvidia, MakeMyTrip, CrowdStrike stock prices IBD50. CrowdStrike was the IBD Stock Of The Day on Tuesday.
The video embedded in this article discusses Tuesday’s market trends and analyzes CrowdStrike, Pure Storage, and ONON stocks.
Dow Jones futures today
Dow Jones futures rose 0.1% to fair value. S&P 500 futures and Nasdaq 100 futures rose slightly.
Investors will hear the April Consumer Price Index, April Retail Sales and May Empire State Manufacturing Index at 8:30 a.m. ET. These are sure to shake up Dow Jones futures and US Treasury yields.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
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CPI inflation rate
Economists expect overall and core consumer prices to rise 0.3% in April, following a 0.4% rise in March. Overall CPI inflation is expected to be 3.4% year-on-year, down from 3.5% in March. Core CPI inflation should fall to 3.6% from 3.8%.
Meanwhile, retail sales in April are expected to steadily increase by 0.4%, following the 0.7% increase in March. Excluding automobiles and gasoline, sales are expected to increase by only 0.1%, following a 1% increase in March.
The New York Fed’s Empire State Manufacturing Index is expected to rise to -10 from -14.3 in April, but remains below breakeven.
stock market rise
The stock market rally gained momentum on Tuesday afternoon.
The Dow Jones Industrial Average rose 0.3% in stock market trading on Tuesday. The S&P 500 rose 0.5%, just below its all-time high. The Nasdaq Composite rose 0.75%, closing at a new all-time high and just below its all-time high set on March 21st. The small-cap Russell 2000 rose 1.1%.
After a solid rally, it’s positive to see the major indexes hovering near all-time highs. Things are looking even better for the major stocks, with several buy signals flashing over the past few days and more stocks setting up.
US crude oil prices fell 1.4% to $78.02 per barrel.
The 10-year Treasury yield fell 3.5 basis points to 4.44%, reversing its intraday high of 4.53%.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) rose 0.6%, with Oracle and CRWD stocks both members. VanEck Vectors Semiconductor ETF (SMH) rose 1.7%. NVDA stock is SMH’s primary holding.
SPDR S&P Metals & Mining ETF (XME) 1% progress. SPDR S&P Home Builders ETF (XHB) rose 0.9%. Energy Select SPDR ETF (XLE) rose 0.1%, while the Healthcare Select Sector SPDR Fund (XLV) rose 0.4%.
Industrial Select Sector SPDR Fund (XLI) I closed the trade just below the break-even point. Financial Select SPDR ETF (XLF) rose 0.5%.
Top 5 Chinese stocks to watch right now
GME stock, AMC Entertainment
Meme stocks continued to rise, led by OG meme plays GameStop and AMC Entertainment.
GameStop shares jumped 60% to 48.75 after surging 74% on Monday. GME stock hit 64.83 during the day.
AMC stock rose 32% to 6.85, but closed below its 200-day moving average. This comes after a 78% jump on Monday. The stock price reached 11.88 during the day.
GameStop and AMC became active overnight, posting solid gains.
Meme stocks soared this week after Keith Gill, aka Roaring Kitty, returned to social media for the first time in three years and shared a variety of memes. Gill helped spark his original meme stock’s rise in 2021.
Stocks in buy zone
Embraer stock rose 9.1% to $28.85, breaking above a flat-based buy point of 27.25 on very heavy volume. The Brazilian jet maker is currently expanding slightly.
Pure Storage shares rose 3.8% to 56.41, above the double-dip buy point of 55.09.
On Holding shares rose 18.3% to 36.30, clearing a short-term high of 34.93 and an official buy point of 36.15, according to . market surge. On Holding’s profit more than doubled compared to the same period last year, overwhelming expectations.
CrowdStrike stock price rose 3.25% to 329.55, remaining above its 50-day line. It could be done now, or investors could use Friday’s high of 327.50 as an early entry. The official buy point is 365, but investors could use a move above the 338 level as an early entry.
Oracle stock rose 3.9% to 120.87, regaining its 50-day line on double normal volume. The database software giant has a 132.77 buy point from its new base following a long-term consolidation. But investors could use Tuesday’s move as an early entry into ORCL stock. Shares soared Tuesday after reports that Elon Musk’s artificial intelligence startup xAI is in talks with Oracle for a multi-year, $10 billion cloud computing deal.
Timing the Market with IBD’s ETF Market Strategy
nvidia stock
NVDA stock rose 1.1% to 913.56 on Tuesday, continuing to trade closely over the past few sessions and hovering just above its 50-day line. The buy point for Nvidia stock is 922.20 cup with handle.
The company, a leader in AI chips, announced its financial results on May 22nd.
what to do now
Stock market gains continue to trade closely, just below all-time highs. This breather allows more stocks to be placed, while the stocks that are making quick gains see their relative strength improve.
Some stocks like Pure Storage and Embraer are breaking out, while others like Nvidia are establishing themselves.
Wednesday’s CPI inflation report and other economic indicators are important, but it’s already time to focus on next week’s NVIDIA results. Nvidia’s earnings and guidance are key to the rise of the AI sector and the overall market.
So be careful how much exposure you increase in the coming days, especially in the AI/technology space.
Be sure to work on your watchlist. Many stocks are moving into positions.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson in the thread. @edcarson1971 and on X/Twitter @IBD_ECarson The latest information on the stock market, etc.
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