Dow Jones Rises Ahead Of Inflation Data; Tesla Jumps On Texas Plans; Warren Buffet Stock Reports Tomorrow

The Dow Jones Industrial Average rose nearly 0.5% ahead of inflation data due Thursday. The blue chip index rebounded from its 50-day moving average Monday and remained above it in the first hour of trading Wednesday.

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The S&P 500 also rose 0.5%. The index has been testing its 50-day line for the past few sessions. Should it clear the level in a sustained rally, the next key level is at 4000, which coincides with the 200-day moving average.

The Nasdaq composite led gains, up 0.6% in early trading, as did the small-cap Russell 2000. The Nasdaq is approaching its 50-day line. Nasdaq component Taiwan Semiconductor (TSM) is on tap Thursday with its earnings report. TSM is a top holding in Warren Buffett’s Berkshire Hathaway (BRKB), which holds more than $4.1 billion of the stock. TSM slipped 0.1% in early trading.

Volume on the NYSE and on the Nasdaq was higher compared with the opening hour on Tuesday.

Crude oil rose over 1% to trade at $76.27 a barrel. The next round of sanctions on Russian oil will come into effect on Feb. 5. The December sanctions have resulted in Russian chief export grade crude oil selling at $37.80 a barrel. By comparison, Brent crude sold at $78.57, according to analysis from Argus Media.

The yield on the 10-year Treasury note fell 4 basis points to 3.57%.

The Innovator IBD 50 ETF (FFTY) outperformed the stock market with a 1% gain.

Some health care stocks are breaking down.

Halozyme Therapeutics (HALO) plunged over 10% after the company gave a weak outlook late Tuesday. Shares knifed through their 50-day line in heavy volume, which is a sell signal.

AbbVie (ABBV) is also selling off and breaking below the 50-day moving average. It has fallen about 7% from the 167.87 buy point, although the stock spent only a short while above that entry before fading.

Dow Jones Stocks

Shares of Apple (AAPL) are rising 0.5% after news that the Cupertino, Calif., giant plans on making its screens in-house. So far, it relied on Samsung and LG for its high-end displays.

Dow Jones leader Caterpillar (CAT) is in a buy zone with a buy point of 238 in a cup base. CAT is also on the IBD Leaderboard. Boeing (BA) also rose 1% after some domestic flights resumed today. Late Tuesday. the FAA grounded several domestic flights after the FAA system that sends messages to pilots had an outage. Outside the Dow, Delta (DAL) has risen 1% with earnings due on Friday. The shares are building the right side of a cup base with a buy point of 46.37. Strong volume has been accompanying the price action this week.

In healthcare, UnitedHealth (UNH) is notching a small gain of less than 1% ahead of earnings on Friday. Elsewhere, Medpace (MEDP) on the IBD Leaderboard is on a four-day winning streak and is fast approaching a buy point of 235.82 on strong volume.

Stocks Moving Today

Tesla (TSLA) jumped over 5% after CEO Elon Musk unveiled plans to expand the Texas gigafactory with a $1 billion investment.

Warner Brothers Discovery (WBD) slipped by almost 1%, though Guggenheim analyst Mike Morris upgraded the stock to a buy with a price target of 16.50 for the media stock.

Medical technology stock Axonics (AXNX) surged over 10% after preliminary fourth quarter results showed a 61% increase in revenue. For the year, the Irvine, Calif.-based company expects a 52% revenue increase to $273.6 million.

Several financial companies are reporting earnings this week. Dow Jones component JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C) and Bank of America (BAC) are on tap Friday. The bank stocks are notching small gains today.

Please follow VRamakrishnan @IBD_VRamakrishnan for more stock market updates.

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