Market rally regains key levels ahead of CPI inflation report; Medspace, first flash solar buy signals

Dow futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures.




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The stock market rally was indecisive for most of Tuesday, but the major indexes gained strength, with the S&P 500 moving up its 50-day moving average. Investors await the CPI inflation report for December on Thursday morning.

midpiece (MEDP) rose strongly on Tuesday, flashing with a fresh buy signal after a similar move fizzled out at the end of 2022. First Solar (FSLR) bounced off the 50-day line, which also provided an early entry. But ELF Beauty (dwarf) And Super microcomputer (SMCI) After reflections on Monday.

MEDP and ELF Beauty shares are in the running IBD Leaderboard. SMCI stock is located at defect 50. Medspace was on tuesday IBD stock today.

Tesla (TSLA) And United Health (United nations) fell, with many large companies continuing to struggle.

Investors should remain cautious, especially as the CPI inflation report approaches.

Business news

while, Wells Fargo (WFC) will largely exit the mortgage business amid regulatory pressure, CNBC reported late Tuesday. You will provide home equity loans only to existing clients of Banks and Wealth Management and to borrowers in minority communities. WFC stock hasn’t changed much in extended trade.

Axcelis Technologies (ACLS), which has taken a strong stride over the past several sessions, said revenue for the fourth quarter ending in December topped $250 million versus the chipmaker’s previous guidance of $232 million to $240 million. ACLS stock rose after hours.

imping (PI) says fourth-quarter sales of over $76 million versus the RFID chip maker’s previous guidance of $71.5 million-$73.5 million. PI stock, already slightly above its 50-day line, rose strongly overnight. This can provide early entry or close to the underlying fixed buying point for Impinj shares. The PI stock is also on the leaderboard.

Earnings season also starts picking up late in the week. Taiwan Semiconductor (TSMThursday morning reports. on Friday, c. B. Morgan Chase (JPM), American bank (buck), Citigroup (c) and Wells Fargo all report before opening, along with Delta Airlines (DAL) and UnitedHealth.

Dow jones futures today

Dow futures rose 0.1% against fair value. S&P 500 futures rose and Nasdaq 100 futures were flat.

The 10-year Treasury yield fell 3 basis points, to 3.59%.

Crude oil futures fell 1%.

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.


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Stock market rise

After fading disappointingly on Monday, the stock market consolidated higher on Tuesday afternoon, closing near session highs.

The Dow Jones Industrial Average rose 0.6% on Tuesday Stock market trading. The S&P 500 rose 0.7%. The Nasdaq Composite Index rose 1%. Small Capital Russell 2000 Spread 1.5%

Tesla stock fell 0.8% after bouncing 5.9% on Monday. Shares reversed higher on Friday after hitting a bear market low of 101.06 after the electric car giant announced deep price cuts in China and other major Asian markets. TSLA stock needs a lot of overhaul.

The Austin Business Journal reported late Tuesday that Tesla has applied to Texas for a major expansion of its Austin assembly plant. Tesla Austin is still upgrading its current capacity.

The United Nations stock fell 0.8%, its worst level since last June. Health insurer Dow Jones is down 8.3% already in 2023, after ending 2022 in reasonably good shape. UnitedHealth’s earnings and guidance on Friday will be significant for the suddenly beleaguered sector.

US crude oil prices rose 0.7% to $75.12 a barrel. Natural gas prices fell 6.9%.

The 10-year Treasury yield jumped 10 basis points to 3.62% after sliding 20 basis points in the previous two sessions.


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Exchange Traded Funds

Among the ETFs, the Innovator IBD 50 ETF (fifty) by 1.1%, while the Innovator IBD Breakout Opportunities ETF (fit) increased by 0.15%. iShares Expanded Technology and Software ETF (IGV) gained 0.1%. VanEck Vectors Semiconductor Corporation (SMH) advanced 1.3%, crossing the 200-day line only after crossing 50 days on Friday. TSM stock is a large SMH holding.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(jumped 2.5% and the ARK Genomics ETF)ARKG) 3.6%. Tesla stock remains a major holding at Ark Invest, as Cathy Wood has strengthened its position in recent weeks.

SPDR S&P Metals & Mining ETFs (XME(increased by 2.5% and the Global Infrastructure Development Fund (ETF) of the US company Global X)cradle) jumped 1.6%. US Global Gates Foundation ETF (Planes) rose 2.4%, with DAL stock among the notable holdings. SPDR S&P Homebuilders ETF (XHB) rose 1%. Energy Defined Fund SPDR ETF (xle(Advance 0.7% and Financial Select SPDR ETF)XLF) gained 0.6%. SPDR Health Care Sector Selection Fund (XLV) closed up 0.8%, with United Nations stock holding the highest value XLV.


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Market rally analysis

The stock market rally spent most of the morning around breakeven, but ended Tuesday with a relatively strong performance.

The S&P 500 rose above the 50-day line. The 200-day average is slightly higher than that.

The Dow Jones rebounded from a test of the 50-day line after moving above that key level on Friday. The NASDAQ rose from the 21-day line with the 50-day line not far away.

Russell 2000 is back above the 50-day line, just under the 200-day mark.

The S&P MidCap 400 rose on Tuesday after finding support at 50 days. This is after jumping over the 21-day, 50-day, and 200-day lines on Friday. Invesco S&P 500 Equal Weight Fund (RSP) looks exactly the same.

RSP and MidCap 400 highlights how to use capital letters such as an Apple (AAPL), Tesla and UN shares have affected the market.

The sustained rally in the stock market may not continue until there is clarity on when the Federal Reserve will stop raising interest rates. Markets are very much anticipating only a quarter point rally at the February 1 policy meeting and again in late March.

The CPI inflation report released on Thursday could confirm expectations of a quarter point increase. Inflation should continue to trend downward in the coming months, if only because year-over-year comparisons are steep.


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Leading stocks mixed

A number of blue-chip stocks have issued buy signals in recent days and weeks. But most of them quickly faltered. In some cases, like MEDP stock, they bounce back after a few days.

Medpace jumped 5.9% to 223.29 on heavy volumes, bouncing off the 50-day line and surpassing the high of Dec. 29, when MEDP attempted an exit.

First Solar rose 7.4% to 171.01, continuing its string of small gains. The move from the 50-day line provided an early entry inside a new rule, but it now looks a bit stretched. But the official buy point 173.78 is not far.

Other names keep coming in.

ELF stock had a promising breakout on Friday, but gave up most of those gains on Monday and fell 8.3% on Tuesday to 51.15, crossing the 50-day line and trimming its flat bottom.

SMCI stock rose Monday morning, making an early entry, but closed only partially higher. On Tuesday, shares fell 7.55%, below the 50-day line, after the short-selling report.

Many other stocks are hovering around potential buying points.


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What are you doing now

The stock market rally is still valid, but major indices, sectors, and especially blue-chip stocks are vulnerable to setbacks. Thursday’s CPI inflation report could lead to significant gains, with major indexes decisively pushed above some key levels. But it can also go the other way.

Investors should be careful about their exposure and be wary of new purchases, especially ahead of the CPI report.

If you make new purchases, know your exit strategy before you embark on it. Consider taking partial profits quickly to reap some gains.

This is still a shopping mall. But there are plenty of interesting stocks to watch from a variety of sectors. Get these watchlists ready.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

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