The Dow Jones Industrial Average rose Wednesday morning after a cooler-than-expected wholesale inflation report in the form of the Labor Department’s Producer Price Index. And oil prices jabbed to a seven-week high, while Tesla stock looked to add to Tuesday’s surge and raced higher in early morning trade.
The PPI fell 0.5% in December, its biggest monthly drop since April 2020 and much larger than the expected 0.1% decline, per Econoday estimates. Year over year, the PPI increased 6.2%, short of the 6.8% estimate.
Meanwhile, retail sales fell 1.1% in December, missing estimates that called for a 0.8% drop.
Interactive Brokers (IBKR) and United Airlines (UAL) reported earnings late Tuesday, while Charles Schwab (SCHW) earnings came out early Wednesday.
IBKR stock rallied 5.9% in morning trade, breaking out past a double-bottom’s 80.95 buy point. United Airlines jumped 3% after beating earnings and sales targets. Schwab shares lost 3% after an earnings miss.
Stock Market Today
Mobileye Global (MBLY) climbed 6% after Deutsche Bank started coverage with a buy rating and a 48 price target. Dow Jones stock IBM (IBM) dropped more than 2% after a Morgan Stanley downgrade from overweight to equal weight, with a lowered price target of 148.
Biotech Moderna (MRNA) jetted 4.7% higher after announcing late Tuesday an experimental vaccine proved 84% effective against respiratory syncytial virus, or RSV, in older adults.
Electric-vehicle leader Tesla (TSLA) pared gains to 2% Wednesday, as Chief Executive Elon Musk goes to trial over his 2018 tweets that discussed taking the company private. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both higher after today’s stock market open.
Deere (DE), IBD Leaderboard stock Fluor (FLR), Insulet (PODD) and recent IBD Stock Of The Day Medpace (MEDP) — as well as Dow Jones names Amgen (AMGN), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market testing the strength of a new rally.
Fluor and Medpace are IBD Leaderboard stocks.
IBD’s latest newsletter MarketDiem gives…