Dow Jones rises as Salesforce shares rise; Elon Musk overestimates Tesla Cybertruck deliveries
The Dow Jones Industrial Average rose even as other indexes struggled amid stellar performance Sales force Profits (CRM). Tesla (TSLA) stumbled even as CEO Elon Musk touted delivery of the Cybertruck. Fellow Seven Magnificent Stocks Nvidia (NVDA), Meta platforms (dead) and Microsoft (MSFT) also declined.
A number of stocks tried to break out despite the mixed movement. Embraer (ERG), MongoDB (MDB) and Cheniere energy (LNG) Tested entries.
Encouraging inflation data emerges ahead of Powell
There was some positive data on Thursday to support monetary easing policies. Headline inflation was flat month-on-month and rose 3% year-on-year. Economists had expected it to rise by 0.1% compared to last month, with an annual increase of 3.1%. The core personal consumption expenditures index, the Fed’s preferred measure of inflation, was in line with economists’ expectations. The core figure does not include volatile food and energy prices.
Furthermore, first-time unemployment claims rose to 218,000 versus 211,000 the previous week. This was below expectations. But continuing claims jumped to 1.93 million, up 86,000 from the previous week — the highest level since Nov. 27, 2021. Both metrics are positive for those in the rate-cutting camp because they show rates and the labor market are slowing.
Federal Reserve Chairman Jerome Powell prepares to participate in an economic discussion in Atlanta on Friday. It remains to be seen whether Powell will choose to take a more dovish stance or attempt a more hawkish tone amid falling Treasury yields.
Nasdaq declines, but small companies gain
The Nasdaq, which is dominated by technology stocks, lagged the most, falling 0.5%. Electric vehicle inventory Clear (LCID) was among the laggards, down about 4%.
The S&P 500 was nominally positive. Phillips 66 (PSX) posted eye-catching gains of about 6%. Shares broke out of the cup base with a 125.19 buy point on heavy volume.
The majority of S&P 500 sectors were positive. The health and industrials sectors performed the best in the stock market today. Consumer discretionary and telecommunications services lagged the most. Technology also fell.
Small stocks rose, with the Russell 2000 up 0.4%. Leading stocks, though, were the clear best performers, with the Innovator IBD 50 ETF (FFTY) jumping more than 1%.
Dow Jones Today: Salesforce earnings rise
The Dow Jones Industrial Average outperformed today, thanks in large part to one star’s performance. It’s up nearly 400 points, or just over 1%.
Salesforce rose more than 8% after reporting high profits and turning on a strong trend. MarketSmith analysis shows that the stock is now near the top of the buy zone after breaking above the buy point of 238.22.
While many people expected Microsoft to take the honor, Salesforce is actually the best performer on the Dow Jones year-to-date thanks to a roughly 85% rise. He is a member of the IBD Leaderboard Watchlist.
Some other stocks achieved notable gains. UnitedHealth (UNH) emerged more than 3% while Boeing (BA) rose almost 3%.
Chevron (CVX) lagged even further behind the Dow Jones today as it was down nearly 1%. Walmart (and died) and Nike (NKE) is also late.
Tesla shares fall as Elon Musk promotes the Cybertruck
Tesla stock has been falling even as it prepares to host a Cybertruck event. Company CEO Elon Musk was certainly excited ahead of the event, taking to social media to promote his product.
“First Cybertruck delivery in 2 hours!” Written on Xformerly known as Twitter.
The event was scheduled to start at 3 p.m. ET. Investors will want details on issues including pricing, driving range and the delivery ramp-up picture.
Despite the excitement, Tesla stock fell more than 1%, although it was far from its lows. It remains far from the double basic entry at 278.98. But while TSLA’s gains for the year have been cool, they are still up more than 120% so far in 2023.
Seven Wonders: Nvidia stock delay
Tesla stock wasn’t the only member of the so-called Magnificent Seven to stumble.
Nvidia was actually lagging behind the pack, down nearly 3%.
The leaderboard stock has now fallen below the 21-day EMA. It has also reversed below the buy zone from the entry level of 476.09.
Google Parents the alphabet (GOOGL) and Meta Platforms also declined with declines of more than 2% each.
Amazon.com (AMZN) was down nearly 1% while Microsoft and apple (AAPL) suffered nominal declines.
Outside the Dow Jones: Three stock test entries
While there are potential signs of some volatility in the market, the current uptrend means investors should track breakouts.
Brazilian airline Embraer stock rose above a consolidation buy level of 17.14. This is the first stage pattern.
Overall performance is excellent, with the IBD Composite Rating reaching a best-possible 99. Earnings jumped 34% last quarter.
MongoDB briefly cleared the weekly cup base entry of 439, although it has now reversed back below that level. It remains executable from entering the cup with handle at 412.57 on the daily chart.
This database software stock also has a perfect composite rating. It’s also among the top 2% of stocks in terms of price performance over the past 12 months.
Cheniere Energy is in a buy zone after breaking a very long base buy point at 182.35. This is the rule of the first stage.
Both earnings and stock price performance are stout. But while earnings per share are expected to rise 512% this year, they are expected to fall 72% in 2024.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin For further analysis of growth stocks.
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