Futures Mixed As CPI Inflation Data Looms

A downgrade for Dow Jones component Goldman Sachs (GS) helped hamper blue chip futures Wednesday morning as Wall Street awaited inflation data and earnings from big banks later in the week. Meanwhile, Coinbase (COIN) tumbled as bitcoin declined sharply.




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Ahead of the opening bell, Dow Jones futures were flat to down. S&P 500 futures dipped less than 0.1%, as did tech-heavy Nasdaq 100 futures.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.1%, while the SPDR S&P 500 ETF (SPY) edged down.

The 10-year Treasury yield dipped to 3.99% Wednesday. On Tuesday, the Treasury yield closed at 4.01%, holding above 4% for the third straight session.

Also, oil prices looked to extend Tuesday’s gains, as West Texas Intermediate futures moved up 1.5% Wednesday morning. WTI futures traded around $73.30 a barrel.

Banking giant Goldman Sachs dipped 0.5% in premarket action after BMO Capital downgraded the stock from outperform to market perform, with a 357 price target. GS stock ended Tuesday extended past a 361.62 cup-base entry.

Cryptocurrency exchange Coinbase dropped 2.6%, as the price of bitcoin tumbled more than 3% over the past 24 hours. The price of bitcoin traded below $45,000, according to CoinDesk.

Earnings Reports

Banks are due to launch their fourth-quarter reporting season on Friday, with JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) lined up to report.

Ahead of that earnings kickoff, KB Home (KBH), PriceSmart (PSMT) and Smart Global (SGH) were earnings movers Wednesday morning.

KBH stock rose dipped 0.4% in early trade, while PriceSmart shares soared nearly 9%. Further, Smart Global shares jumped 11% in early action.


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Dow Jones Falls

On Tuesday, the Dow Jones Industrial Average moved down 0.4%, and S&P 500 dropped 0.2%. The tech-heavy Nasdaq composite reversed from early losses to gain 0.1%.

Tuesday’s Big Picture column commented, “The IBD 50 index was helped by noteworthy outperformance among some highflying names. Super Micro Computer (SMCI) was the top performer as it soared 7.3% in high volume with GigaCloud Technology (GCT) and CrowdStrike (CRWD) following closely behind with lifts of 6.7% and 4.8%, respectively.

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.


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Best Stocks To Buy And Watch

Magnificent Seven players Alphabet (GOOGL) and Amazon (AMZN), along with Netflix (NFLX) and Novo Nordisk (NVO) — plus Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.

Amgen and Novo Nordisk featured in this Stocks Near A Buy Zone column.


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Dow Jones: Amgen Out Of Buy Range

Biotech leader Amgen slipped 1.2% Tuesday, moving further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock was up flat early Wednesday.

Heavy machinery giant Caterpillar ended Tuesday just below its 293.88 buy trigger, amid a 1.2% gain. CAT stock was virtually unchanged Wednesday morning.

Drug maker Merck is trying to break out past a cup base’s 119.65 buy point, according to IBD MarketSmith pattern recognition. MRK stock ticked up slightly Wednesday.


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Google Retakes Entry

Alphabet rallied 1.5% Tuesday, bouncing off its 50-day line and retaking a 139.42 buy point in a cup with handle, according to IBD MarketSmith. GOOGL stock edged lower early Wednesday.

IBD Leaderboard stock Amazon moved further above its cup base’s 145.86 buy point during Tuesday’s 1.5% rally, continuing to rebound from support around its 50-day line. AMZN stock rose 0.2% Wednesday morning.

IBD SwingTrader stock Netflix cut losses to just 0.6% Tuesday, closing just below a 482.70 buy point in a cup with handle. NFLX stock gained 0.2% Wednesday.

Weight-loss drug maker Novo Nordisk ended Tuesday up 0.5%, further above a 105.69 flat-base buy point following a strong breakout on Jan. 4. NVO stock moved up 1.1% early Wednesday.


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Best Bets In Today’s Action

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

Company Name Symbol Correct Buy Point Type Of Buy Point
Novo Nordisk (NVO) 105.69 Flat base
Caterpillar (CAT) 293.88 Cup base
Netflix (NFLX) 482.70 Cup with handle
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Jan. 9, 2024

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Magnificent Seven Stocks: Nvidia, Tesla

Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) traded higher Wednesday morning. NVDA stock climbed 0.7%, while Tesla shares were up 0.2%.

Nvidia ended Tuesday’s session up 1.7%, further past a flat base’s 505.48 buy point. Shares are just out of the buy range. Nvidia is an IBD Leaderboard stock and is set to hit more record highs Wednesday morning.

Tesla stock skidded 2.3% Tuesday, closing below its 50-day line for the first time since late November. The EV giant has a big double-bottom pattern with conventional buy point of 278.98. Meanwhile, an early buy trigger is at 265.13.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Wednesday’s stock market open.

Apple inched lower Tuesday, remaining below a 192.93 buy point and the 50-day line. AAPL fell 0.4% Wednesday morning.

Microsoft stock added 0.3% Tuesday, still in buy range a 366.78 cup-base buy point. Meanwhile, MSFT is rebounding from its 50-day line and approaching a flat base’s 384.30 entry. And the software giant was up 0.1% Wednesday morning.

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

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This article was originally published by a www.investors.com . Read the Original article here. .