The Dow Jones Industrial Average reversed lower after another major inflation report – the Producer Price Index – arrived on Wednesday in the wake of a stock market drop from a hot CPI reading. Meanwhile, the 10-year Treasury yield is about to hit an 11-year high in June.
The US Labor Department said the Producer Index, or PPI, fell 0.1% in August vs. Previous month, matching estimates. Wholesale inflation was up 8.7% from a year ago, down from 9.8% in July and in line with Econoday’s estimates.
on Tuesday, and Inflation rate in the consumer price index It fell to 8.3%, down from 8.5% in July and 9.1% in June, amid falling gas prices. The CPI rose 0.1% during the month. But Wall Street economists expected the CPI to show a monthly decline of 0.1%, bringing the CPI inflation rate down to 8%. Worse, core inflation accelerated more than expected to 6.3%.
as a result of, Markets think now There is a 38% chance of a full percentage point increase at the next Fed meeting. Prior to Tuesday, Wall Street had not laid any controversies over this possibility at all.
Meanwhile, the leader of electric vehicles Tesla (TSLA) is up 2% on Wednesday. between the Dow Jones Industriestech giants apple (AAPL) And the Microsoft (MSFT) was higher yet stock market today Open. merck (Mrk) rose 0.7% after Berenberg upgraded the stock to buy.
In light of the current volatility of the market, Arista Networks (Network), double check (DV), Palo Alto Networks (bano) And the pure storage (PSG) – as well as Dow Jones stock chevron (CVX) – among the top stocks to buy and watch. Keep in mind that the increased volatility in the market is a good reason for investors to be more defensive, especially after the market plunged on Tuesday.
DoubleVerify is a file IBD Leaderboard stock. It was Chevron and Palo Alto It appeared in the stock column near the buy zone for this week.
Dow Jones today: Treasury yields and oil prices
After the opening bell on Wednesday, the Dow Jones Industrial Average fell 0.25% after giving up early gains, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq Composite lost 0.1% in the morning’s move.
The 10-year Treasury yield rose to 3.43% on Wednesday morning. On Tuesday, the 10-year Treasury yield hit its highest closing level since June 14 and is close to an 11-year high of 3.48% hit on June 14.
US oil prices fell slightly on Wednesday, continuing to consolidate after recent gains. West Texas Intermediate futures traded again below $87 a barrel.
Stock market rise under pressure
On Tuesday, all three major stock indexes pulled back from their 50-day moving averages, leading to a trip back to Sept. 6 low points in play. The Dow Jones Industrial Average fell 3.9%, while the Nasdaq fell 5.2%.
Prior to the release of the inflation report, Tuesday big picture column He commented, “It’s best to stay out of the way of the market at this point. Evaluate your current holdings. If you have some profitable names and maintain high levels of support in the short term, it’s okay to hold. leaderboard Wallet, for example, we still have Invesco Solar (tan) as it is slightly above our entry point and is settling above the converging 10 and 21 day lines.”
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Dow Jones stocks to watch: Chevron
Chevron stock in the Dow Jones Industrial Average is down 1.9% on Tuesday, but is still holding above support at the key 50-day line. The stock is close to its latest buying point at 166.93 – according to IBD Market Smith Chart Analysis – Amid the strong performance of energy stocks this year so far. The stock was up 1% early Wednesday.
CVX stock Shows a strong 97 out of a perfect 99 IBD compound classification, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Top Stocks to Watch: Arista, DoubleVerify, Palo Alto Networks, and Pure Storage
Arista Networks added a handle to the double-bottom base, placing the correct insert at 132.97, according to IBD Market Smith Graph analysis. Arista’s relative strength line is close to the highs. ANET shares rose 0.1% early Wednesday.
IBD stock leaderboard DoubleVerify is above 28.07 buying points at a bottom base. Stocks are in the 5% buy zone which comes to 29.47. DV stock is down 0.1% Wednesday morning.
Cybersecurity leader Palo Alto Networks is close to 578.89 handle-cup buying points despite Tuesday’s 3.4% drop. Early entry around 560 also plays due to the trend line, according to IBD Leaderboard Suspension. Shares rose 0.5% on Wednesday.
Pure Storage approaches the $31.62 buy point in a cup with a handle. Meanwhile, early entry is also made after the stock moved above the downtrend line inside this handle. Shares fell 0.3 percent on Wednesday.
Tesla shares He skated by 4% on Tuesday, cutting off a five-day winning streak. Stocks ditched the 200-day streak, which they just regained. The electric car giant is up 2% Wednesday morning.
Shares are about 30% off their 52-week high.
Dow Jones Leaders: Apple and Microsoft
within Dow Jones stockApple shares tumbled 5.9% on Tuesday, once breaking below the 50 and 200-day lines. The stock is about 14% off a buy point at 176.25 from a cup with a handle. Apple stock rose 0.3% on Wednesday.
Microsoft stock fell 5.5% on Tuesday, ending a four-day winning streak. The software giant is still sharply below the 50 and 200 day lines. Shares are down 28% from their 52-week high. Microsoft shares rose 0.1% Wednesday morning.
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