As Wall Street reacted to an unexpectedly high inflation report, the Dow Jones Industrial Average and other key indicators experienced slight gains on Tuesday. Furthermore, Oracle, a dominant player in artificial intelligence, saw an immediate increase following robust income results.
During morning trading, the Dow Jones Industrial Average rose by 0.3%, while the S&P 500 saw a 0.4% increase. The tech-centric Nasdaq composite surged by 0.5% after the market opened.
Simultaneously, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) and the SPDR S&P 500 ETF (SPY) both recorded gains of 0.5% and 0.4% respectively.
The 10-year Treasury yield climbed to 4.14%, while oil prices experienced a decline, hovering just below $78 per barrel for West Texas Intermediate futures.
Explore the latest insights from IBD on adapting to evolving market conditions.
Current Stock Market Overview
In February, the consumer price index rose by 0.4%, exceeding expectations, with an annual increase of 3.2%, higher than the anticipated 3.1% rise.
The core CPI, excluding food and energy, surpassed estimates with a 0.4% increase and a 3.8% year-over-year rise, compared to the expected 3.7% uptick.
Oracle, renowned for its AI solutions, witnessed a more than 10% surge in day trading on Tuesday following an impressive quarterly earnings report that outperformed analysts’ projections. The company attributed its success to the growing demand for its cloud-based services driven by artificial intelligence.
Kohl’s (KSS) and On Holding (ONON) also released their earnings reports. While Kohl’s shares dipped by 0.2%, On stock plummeted by over 16% during the trading session.
Southwest Airlines (LUV) faced a significant decline of over 12% after revising its financial outlook ahead of the J. P. Morgan Industrials Conference. The airline cited Boeing (BA) delivery delays as the reason for adjusting its capacity plans and reassessing its annual forecasts.
Dow Jones Performance
On Monday, the Dow Jones Industrial Average edged up by 0.1%, while the S&P 500 saw a slight decline of 0.1%. Conversely, the technology-focused Nasdaq composite dropped by 0.4%.
Amid escalating risks, IBD recommends maintaining a stock exposure level between 60% and 80% in your portfolio, as highlighted in the Big Picture column on Monday. The lack of new market leaders in recent months has posed challenges for sustaining the strength of leading stocks.
Stay informed by reading IBD’s The Big Picture column to navigate the ongoing market rally effectively.
Leverage IBD’s ETF Market Strategy for precise market timing.
Top Stock Picks in the Current Market
Among the top stocks to monitor in the stock market are Duolingo (DUOL), Fifth Third Bancorp (FITB), Fortinet (FTNT), and Block (SQ), along with Dow Jones components Disney (DIS), IBM ( IBM ), and Procter & Gamble (PG).
The Companies Near a Purchase Zone section featured Block, with Fifth Third being a recent addition to the IBD Leaderboard.
For daily breakout opportunities, refer to the “Breaking Out Today” list from IBD MarketSurge, highlighting stocks surpassing their current buy points. Notably, there were no new breakouts on Monday.
The MarketSurge “Close Pivot” report identifies companies nearing buy points, such as D. R. Horton (DHI) approaching a 157.93 entry. Tuesday saw a minor downturn in stocks.
Stay updated with real-time buy and sell alerts on stock market leaders through IBD Leaderboard.
Market Trends for Select Companies
Disney is striving to surpass the 112.92 buy point of a large cup base, as per IBD MarketSurge analysis. Currently, Disney shares rose by 0.1% in the market.
IBM is also making efforts to exceed the 196.90 buy point of a flat base, with a 0.3% decline recorded on Monday and a subsequent 0.4% increase on Tuesday.
Procter & Gamble observed a 0.2% drop on Monday, maintaining a position above the 158.38 buy point in a cup base. On Tuesday, P&G shares showed marginal growth.
Identify the best growth stocks to watch amidst the ongoing stock market rally.
Promising Stocks to Monitor
Duolingo witnessed an uptick to 241.86 as it established a handle in a cup base. The stock surged by 4.3% on Monday and continued its positive trajectory with a 1.1% increase on Tuesday.
Fifth Third Bancorp climbed by 1% on Monday, extending its lead above the 35.73 buy level, with a 0.3% increase on Tuesday.
Fortinet, specializing in security solutions, is forming a handle in a longer cup base, adjusting the buy point from 73.91 to 73.91. The stock saw a 0.3% increase on Tuesday.
Block, the parent company of Square, refined its buy point from 83.29 to a cup base by introducing a substantial handle. Despite a recent setback, the stock rebounded by 1.8% on Tuesday, nearing the buy-in target.
Receive actionable stock, option, and crypto insights through IBD’s latest publication, MarketDiem.
Key Stock Recommendations
Presenting the top four companies poised for growth in the stock market, including a Dow Jones standout.
| Company Name | Symbol | Correct Buy Point | Buy Point Definition |
|---|---|---|---|
| Novo Diabetes | NVO | 105.69 | Straight base |
| Merck | MRK | 119.65 | Cup base |
| DraftKings | DKNG | 39.35 | Cup base |
| Spotify | SPOT | 202.88 | Straight base |
IBD Data As of February 28, 2024
Stay informed with expert analysis of leading companies on IBD Live.
Market Performance of Tesla, Nvidia, and Other Leading Companies
During morning trading, Nvidia (NVDA) observed a 2.1% increase, while Tesla (TSLA) faced a 2.5% decline.
Nvidia, a frontrunner in AI technology, encountered a 2% drop on Monday, marking a significant downturn for the second consecutive session. Despite this, Nvidia remains an IBD Leaderboard investment, maintaining over a 70% lead above the 505.48 entry level.
Tesla’s shares rose by 1.4% on Monday but still linger near recent lows, notably below the 50- and 200-day moving averages and more than 40% below the 52-week high.
Dow Jones Leaders: Apple and Microsoft
Apple’s stock surged by 1% on Monday, breaking a seven-day losing streak. Although the shares remain notably below the 200-day moving average, Tuesday saw a 0.8% decline in the stock price.
Microsoft stocks are currently seeking support at the 50-day moving average, a critical level to monitor. Today, the tech giant’s shares rose by 0.9%.
For updates on emerging companies, the Dow Jones Industrial Average, and the latest market trends, follow Scott Lehtonen on X, formerly known as Twitter at @IBD_SLehtonen.
