Dow Jones rebounds on cool CPI inflation data; Cathie Wood sells $92 million in Tesla stock

The Dow Jones Industrial Average rose on Tuesday on weaker-than-expected CPI inflation. Cathie Woods Ark Invest sold a total of 393,000 Tesla shares worth about $92 million based on Monday's closing prices.




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The CPI for May rose 0.1%m/m, below the estimate of 0.2%, with the annual inflation rate slipping to 4.0%, below estimates of a decline to 4.9% 4.1% expect. Core CPI, excluding food and energy, rose 0.4% in line with forecasts, taking core inflation down to 5.3% from 5.5%.

Meanwhile, the Federal Reserve's two-day meeting also begins on Tuesday. The Fed is widely expected to refrain from raising rates at its two-day monetary policy meeting, which concludes at 2pm ET on Wednesday. The move would put the ten consecutive rate hikes that began in March last year on hold.

Finally, oracle (ORCL) posted earnings late Monday that beat Wall Street estimates. ORCL shares are up 5% in early trade. Shares closed Monday in the 20% to 25% gain range from a buy point of 91.22 after a late March breakout.

stock market today

EV giant Tesla (TSLA), which is now up for 12 straight days, rose another 1.3% on Tuesday morning. This happened even after Cathie Woods Ark Invest announced the stock sales. Ark Invest also sold around 20,000 shares of Nvidia (NVDA). Nvidia shares are up nearly 2% early Tuesday.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading mixed after the market open today. intel (INTC) shares rose more than 2% after the UK-based arm of SoftBank Group was reportedly in talks with Intel as a potential strategic investor for its IPO.

Dexcom (DXCM), floor & decor (FND), Fortinet (FTNT) and Kinsale Capital (KNSL) – as well as Dow Jones stocks Cisco systems (CSCO), JPMorgan Chase (JPM) and Foreclosure (CRM) – are among the best stocks to buy or watch when the stock market is up.

Tesla is an IBD leaderboard stock, while Floor & Decor was the IBD stock of the day on Thursday.


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Dow Jones today: oil prices, government bond yields

After Tuesday's opening bell, the Dow Jones Industrial Average was up 0.3%, while the S&P 500 was up 0.35%. The tech-heavy Nasdaq Composite shrank 0.2% in morning trade.

Among U.S. exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is up 0.1%, while the SPDR S&P 500 ETF (SPY) is up 0.3% early Tuesday.

After CPI inflation data, the US 10-year Treasury yield fell to 3.71% on Tuesday. On Monday, the 10-year government bond yield edged up, still close to its late May highs.

Oil prices rebounded in early Tuesday trading after Monday's sharp losses. West Texas Intermediate futures rallied nearly 2% on Tuesday, climbing back above $68 a barrel — still at the bottom of WTI's trading range since early May.

stock market action

On Monday, the Dow Jones Industrial Average was up 0.6%. The S&P 500 gained 0.9%, while the tech-heavy Nasdaq Composite gained 1.5% to set a new high for 2023.

Monday's Big Picture column said: “June – historically a bad month for the market – has been a success so far. The S&P and Nasdaq are up about 4%. Of the eight meetings so far this month, the S&P 500 and the Nasdaq are up in six.” You. The strength of the S&P rally in recent sessions resulted in the May 9 payout date being scrapped, leaving this index a more manageable four days of higher selling volume.”

Now is an important time to read IBD's The Big Picture column given the recent positive shift in the market outlook.


The five best Dow Jones stocks to buy and watch right now


Dow Jones stocks to buy and watch: Cisco, JPMorgan, Salesforce

Dow Jones networking giant Cisco Systems added a handle to a cup base last week and now indicates a buy point at 50.58. CSCO shares gained 0.7% on Tuesday.

Dow Jones bank leader JPMorgan is approaching a flat base buy point of 143.37 after a four day winning streak. Stocks are only 2% away from their last buy point. JPM shares fell 0.6% early Tuesday.

According to leaderboard analysis, Salesforce has surpassed the alternative entries at 193.91 and 200.00 for the past few weeks.

For the past few weeks, shares entered 178.94 cups with Henkel to break even of 20% and are now recovering from support at the 10-week moving average. CRM stock was up 0.8% Tuesday morning.


The 4 top growth stocks to watch stock market rally


Best stocks to buy and watch: Dexcom, Floor & Decor, Fortinet, Kinsale

According to pattern recognition by IBD MarketSmith, Dexcom broke above the 126.44 flat buy point on Monday with a 2.1% rally. The 5% buy range goes to 132.76. DXCM shares rose 0.7% on Tuesday.

IBD SwingTrader stock Floor & Decor sharply hit its 50-day moving average during Wednesday's 5.1% gain, placing the flooring retailer in a new buy zone. FND stock is only 4% off a traditional buy point at 101.39. Shares gained 1.2% early Tuesday.

Insurance leader Kinsale Capital closed Monday in the 5% buy zone above a buy point of 345.75, despite falling 2.1% on the session. The buy zone extends to 363.04. KNSL shares rose 0.7% on Tuesday morning.

IBD's latest share of the day bounced back above the buy point of its flat base of 69.07 during Monday's 2.7% surge. The buy area goes to 72.52. FTNT shares rose 0.9% on Tuesday.


Learn how to drive the market with IBD's ETF market strategy


The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and keep an eye on in today's stock market, including a Dow Jones leader.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
Fortinet (FTNT) 69.07 flat base
Source: IBD data as of June 12, 2023

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live


Tesla stock

IBD leaderboard stock Tesla rose 2.2% on Monday, moving further out of the buy range above the buy point of a double bottom basis of 207.79. Shares closed 21% below their 52-week high on Monday.

TSLA stock appeared to continue its ongoing winning streak, up 1.3% Tuesday morning. Last week, shares rose for the fourth straight day, climbing 14%.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rose for the third day Monday, up 1.6%. The stock hit an all-time high of 184.95 last week and is just below that level. The stock continues to hold well above a buy point of 157.38. Early Tuesday, AAPL shares fell 0.4% after UBS downgraded the stock to neutral from ‘buy' while raising its price target to 190 from 180.

Microsoft shares rose 1.55% on Monday, rebounding for a third straight session and almost recovering from Wednesday's 3.1% sell-off. MSFT stock remains in the 20-25% profit-taking zone from a flat base buy point of 276.76, suggesting investors could have taken at least some profits. And as of Tuesday morning, Microsoft shares were up 0.9%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.

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