Dow Jones Futures Rise on CPI Inflation; JPMorgan Beats, Quantum Shares Jump Investor’s Trading Daily
Dow Jones futures rose modestly on Wednesday, along with S&P 500 futures and Nasdaq futures. The Consumer Price Index is before the opening. JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C) and Wells Fargo (WFC) beating revenue estimates before opening.
Meanwhile, top-spec quantum computing stocks rose ahead of the open, led by D-Wave Quantum (QBTS).
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Stocks mixed, below key levels; Sea, Howmet Aerospace, Argan in Focus
The stock market rally closed for the second straight session on Tuesday after some up-and-down movements.
Nivea (NVDA) and Tesla (TSLA) changed while lowering Palantir Technologies (PLTR) pulled back from aggressive entries on Tuesday. All three stocks were partially up early Wednesday.
A relatively large number of stocks flashed buy signals on Tuesday, including Look (VST), Howmet Aerospace (HMW), Wix (WIX), Argan (AGX), Planet Fitness (PLNT), Ubiquity (UI), the sea (SE) and Snowflake (Snow).
But with the market struggling, investors should be wary of any new purchases while keeping overall exposure light.
Nvidia stock and Wix on. IBD leaderboardArgan and Tesla stock on the leaderboard watch list. Wix stock, Planet Fitness and Vistra are on SwingTrader.
Argan, Haumet Aerospace and Snowflake stocks are on. IBD 50. Howmet Aerospace and Palantir stock are on. IBD Large Cap 20.
Howmet Aerospace was Tuesday’s IBD Stock of the Day. Planet Fitness stock was Monday’s pick.
The video included in the article reviews the market action and analyzes marine stocks, Howmet Aerospace and Argan.
The future of Dr. Jones today
Dow Jones futures rose 0.5% with fair value, as JPMorgan and Goldman both own Dow giants. S&P 500 futures added 0.4 percent. The Nasdaq 100 rose 0.4% in futures.
The 10-year Treasury yield fell to 4.76 percent.
Remember that overnight action in Dow futures and elsewhere does not translate into actual trading during the next regular stock market session.
Bank income
Launching Bank Income, JPMorgan Chase, Goldman Sachs, Citigroup and Blackrock (BLK) reported better-than-expected fourth-quarter revenue and earnings. Wells Fargo was the top earner but missed the mark. Both JPMorgan and Wells provided guidance on 2025 net interest income.
Citigroup announced a $20 billion share buyback.
JPMorgan stock hit a high in premarket trading, above the cup-to-buy point. Stocks opened higher on Tuesday, as the JPM Relative Strength Line hit a new high in the blue dot.
Goldman shares and Wells Fargo shares are up slightly, indicating a move above their 50-day lines and possibly near early entries in the base.
Citigroup rose modestly, seeing new highs on top of its short consolidation
BLK stock rose slightly early Wednesday, but remains below its 50-day line.
Charles Schwab (SW) before opening on Wednesday.
Investors are anticipating strong earnings through 2025 on the backdrop of easier regulation and capital. A standard yield curve with long-term yield higher than the short-term is positive for the traditional short-long model of bank lending. Goldman is in a base slightly below its 50-day line. Charles Schwab broke below its 50-day line.
Join IBD experts as they analyze top stocks and the market on IBD Live
Stock market rally
The stock market’s rally tried to extend Monday’s daily move off lows, but that quickly fizzled out, though indexes were ultimately mixed. The PPI inflation report was tame, with core wholesale prices flat. But higher air fares and other factors did not bode well for Wednesday’s CPI report.
The Dow Jones Industrial Average rose 0.5 percent in Tuesday’s stock market trading. The S&P 500 index rose 0.1 percent. The Nasdaq composite was down 0.2%.
All are below their 50-day moving averages, with the Nasdaq hitting resistance at that key level on Tuesday. A drop below Monday’s lows will be very bearish.
The small-cap Russell 2000 jumped 1.1%. This week, it’s doing the best so far, along with the Invesco S&P 500 Equal Weight ETF.RSP) and First Trust Nasdaq 100 Equal Weighted Index ETF (QQW), rebounding from their 200-day lines. But their 50-day lines are.
A number of stocks received flash buy signals, in a mix of energy, specialty metals, construction, consumer and some technology.
U.S. crude oil prices fell 1.7% to $77.50 a barrel, retreating from a five-month high.
The 10-year Treasury yield fell 1 basis point to 4.79 percent.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1%. The iShares Expanded Tech-Software Sector ETF (VAT) gained 1.1%. The Palantir stock is a large part of the IGV. VanEck Vectors Semiconductor ETFSMH) outstanding 0.3% of Nvidia stocks is a dominant SMH holding.
Reflecting more conservative historical stocks, the ARK Innovation ETF (Sheet0.4% and ARK Genomics ETF () fellARKGIt was down 3.5 percent. Tesla stock is still the top holding across Ark Invest’s ETFs. Cathy Wood Ark owns a lot of Nvidia.
SPDR S&P Metals & Mining ETF (XMEIt grew by 0.7 percent. Energy Choice SPDR ETF (XLE) 1.1% and the Healthcare Select Sector SPDR Fund (inXLV) decreased by 1%.
Industry Select Sector SPDR FundXLI) and Financial Choice SPDR ETF (45) both grew 1.2 percent.
Time with IBD’s ETF Market Strategy
Shares of quantum computing
D-Wave Quantum has formed an alliance with Carasoft Technology, which sells a lot of software to government agencies. The goal is to enhance D-Wave’s quantum computing offerings with US government and public sector entities.
D-Wave stock, QBTS, jumped more than 15% early Wednesday.
removes the calculation (RGTI), Quantum computing (QUBT) and IonQ (IONQ) as well as advanced.
What to do now
The stock market rally is hanging by a thread. While a recovery is possible, the Nasdaq and S&P 500 face minor support above and below several resistance levels.
Some leaders are doing well, but when the market slips, most stocks follow. Oil and gas stocks can be unique in that they rise and fall on major energy prices.
But in general, if you’re betting on individual stocks, you’re betting that the market will move faster. As an investor, you should pay attention to what the market is doing, not what you think it will do or hope it will do.
The past two days have been examples of why investors shouldn’t get excited at the first glimmer of positive action.
With the market currently sliding, investors should seek to reduce exposure to moderate levels or less.
Keep working on the checklists. A number of leads or potential leads will want to follow up on them, either by setting up entries or by mocking them. Many, if not all, are out of the technology space.
Consumer price index and bank earnings could be market boosters on Wednesday, but which way?
Read The Big Picture daily to stay in tune with market direction and leading stocks and sectors.
Please follow Ed Carson on Threads @edcarson1971 and X/Twitter by @IBD_ECarson For stock market updates and more.
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