The Dow Jones Industrial Average rose after the new inflation data. Tesla (TSLA) despite China’s reported concerns about the Elon Musk project. meme stock AMC Entertainment (AMC) And bed bath behind (BBBY) was in return mode. Walt Disney (dis) amid a potential proxy battle.
The yield on the benchmark 10-year Treasury note fell 13 basis points, to 3.43%. West Texas Intermediate crude rose 1.1% to just over $78 a barrel.
Whipsaw Stocks After Inflation Data, Post Update
While the consumer price index fell faster than expected in December, core inflation – which excludes food and energy – only slowed in line with expectations. Stubborn service inflation continued to be a concern.
Edward Moya, chief market analyst at Oanda, said the inflation data gives Wall Street more confidence in another downward shift in Fed tightening. “It’s clear that the deinflationary trends are sound,” he said, highlighting cheaper energy costs.
“Inflation is not declining broadly, but it is easing as the economy begins to feel the impact of previous Fed rate increases,” he said in a note to clients.
Meanwhile, the Labor Department’s initial jobless claims rose to 205,000 versus 204,000 in the previous week, below expectations for a rise to 215,000.
As the market enters earnings season, investors would be wise to limit exposure to the market and only take positions in the top stocks with good penetration.
Nasdaq is gaining as small lowercase Excel
The Nasdaq managed to claw its way out of the red, to close the session up 0.6%. Free market (millie) did well here, up 9.3%.
The S&P 500 has slowed relatively but is still up 0.3% after paring gains. Royal Caribbean Cruise (RCL) was among the winners, up 5.5%.
S&P 500 index Sectors were mostly positive. Energy and real estate performed the best, while health and consumer goods lagged.
Small companies were the best performers, with Russell 2000 stock up 1.6%.
Growth stocks also rose, with the Innovator IBD 50 ETF (fifty) up 0.5%.
Dow Jones today: Disney shares lead amid proxy challenge
The Dow Jones Industrial Average was hit by a rally outside negative territory, closing the day up 0.6%.
Walt Disney was the best performer on the Dow today, up 3.6%. The entertainment giant announced that Nike (from) Chairman Mark Parker will become the new Chairman of the Board.
The House of Mouse is also facing a possible proxy battle as Nelson Peltz pushes Trian for a seat on the board. Disney is resisting the move.
Peltz told CNBC that Disney had “lost its way” causing a “rapid deterioration in its financial performance”. He said the company’s acquisition of Fox had turned what was “an original balance sheet into a mess”.
Tesla shares gain despite the China report
Tesla has made a strong comeback over the past five sessions and rebounded from Red Thursday. It ended the session up 0.3%.
I was pressured early on after that Bloomberg reported That its plans to expand capacity at its Shanghai plant could be put on ice.
The Chinese government is said to be concerned about the implications of the Starlink internet from space project. Tesla CEO Elon Musk also runs SpaceX, which operates the system. Musk has also been described as the chief engineer at SpaceX.
Tesla is set to start the third phase of its Chinese factory expansion in the middle of the year. It will double its production capacity to about two million vehicles annually.
This isn’t the first time Elon Musk’s project has affected Tesla stock. His takeover of Twitter has led to fears it will distract from the electric car giant.
Tesla stock is still rooted below its major moving averages despite rising more than 20% over the past five sessions.
AMC Stock Lags APE, BBBY Stock Rise
Mimi shares are in a comeback mode after overcoming Bed Bath & Beyond’s bankruptcy.
AMC, historically one of the strongest meme stocks, was up 2%. It has now risen 26.1% over the past five sessions.
But AMC Preferred Equity (APE) units were among the best performers in the stock market today. They jumped 9.9%.
However, Bed Bath & Beyond left both of them in the dust, up 50%. It has now risen 261% over the past five sessions.
However, BBBY stock is still down 83% from the 30-point peak it reached on Aug. 17.
Last week, the company warned investors that it might consider filing for bankruptcy, making the stock a very risky proposition.
American Airlines Directory boosts airline stocks
Airline stocks got a boost after that American Airlines (AAL) raised its routing. The carrier raised its adjusted EPS range to $1.12 to $1.17, from 50 cents to 70 cents.
American Airlines stock rose 9.7% after the news, adding space above its 200-day moving average in the process.
This was good news for space, which has been hurt by flight delays or cancellations amid problems with the pilot warning system.
Outside the Dow Jones: Oil Stock Test Entries
With the market strengthening, now is the time to explore the breakouts.
Hess international oil drilling game is in a buy zone after breaking out of a flat base at 149.93 buy points, According to MarketSmith analysis.
Overall performance is great, which is reflected in its composite IBD rating of 99.
Valaris oil and gas exploration stock is considered actionable after rising above the consolidation pattern entry level at 70.27. The RSI reached a new high as it made the move, which is an encouraging sign.
The Illinois Tool Works erupted from a massive cup base with a handle. The ideal entry point here is 231.79.
The company, which produces products including fasteners and engineering components, has accelerating profits. Earnings per share jumped 30% in the most recent quarter.
Please follow Michael Larkin on Twitter at @employee For further analysis of growth stocks.
You may also like: