The Dow Jones Industrial Average rose Wednesday, as the Federal Aviation Administration restarted all domestic departures after a temporary grounding. Meanwhile, Tesla stock rallied on $775 million expansion plans at its Texas gigafactory.
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Airline stocks took modest hits following the FAA news. American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL) all lost less than 1%. Southwest Airlines (LUV), still off balance after its holiday-week travel collapse, dropped 1.5%. Meanwhile, travel site Expedia (EXPE) jumped more than 3%, leading the S&P 500 after an analyst upgrade and price target hike.
With a quiet economic calendar for Wednesday, markets are looking toward Thursday’s first-time jobless claims and inflation data. Year over year, December’s consumer price index prices are expected to be up 6.6%, down from 7.1% in November. Core prices, which exclude and food and energy costs, are seen rising 5.7% year over year, also down slightly from 6% in November.
KB Home (KBH) will report after the close Wednesday. The top homebuilder is above a 34.31 buy point in a short consolidation.
Other companies reporting later this week include Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).
Dow Jones stock Salesforce (CRM) declined 1.5% after Bernstein downgraded the stock from market perform to underperform, with a lowered 119 price target. Cryptocurrency exchange Coinbase Global (COIN) stumbled over 5% on a BofA Securities downgrade from neutral to underperform.
Electric-vehicle leader Tesla rose more than 2% Wednesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both higher after today’s stock market open.
Deere (DE), IBD Leaderboard watchlist stock Fluor (FLR), IBD Stock Of The Day Medpace (MEDP) and Rio Tinto (RIO) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market testing the strength of a new rally.
Medpace is an IBD Leaderboard stock. Caterpillar and Rio were featured in…
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