IBD: Dow Jones Futures Fall As Inflation Data Looms; Nvidia Slides To Key Level

Dow Jones

2024-12-10

By Scott Lehtonen

The Dow Jones Industrial Average and other major indexes traded mixed in premarket action Tuesday as artificial intelligence giant Oracle plunged on its earnings report. Another important AI name to watch on the stock market today is Nvidia, which is teetering on a key support level. Meanwhile, investors awaited key inflation data later in the week.

Ahead of the opening bell, Dow Jones futures fell 0.1%, as S&P 500 futures rose 0.1%. Tech-heavy Nasdaq 100 futures gained 0.2% in morning trades.

Early Tuesday, 10-year Treasury yield ticked higher to 4.23%. Oil prices fell, as West Texas Intermediate futures traded around $68.25 per barrel.

Among exchange traded funds, the Invesco QQQ Trust rose 0.2%, while the SPDR S&P 500 ETF edged higher ahead of the open.

Nvidia stock edged higher Tuesday premarket. The stock sold off 2.6% Monday, closing right at the 10-week moving average line, a critical level to watch.

A sharp rebound would place Nvidia stock in a new buy zone, while a decisive close below that level would be a key sell signal.

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STOCK MARKET TODAY: EARNINGS MOVERS

Oracle tumbled nearly 7% in premarket trading after the company missed earnings and sales estimates late Monday. Oracle shares are set to open at their 50-day line if this weakness persists into Tuesday morning.

Other key earnings movers include AutoZone, C3.ai, MongoDB and Ollie's Bargain Outlet.

AutoZone stock edged lower, while shares of C3.ai dropped more than 7%. MongoDB stock plunged nearly 10% in early trading. Ollie's stock jumped more than 6% in morning trading.

Inflation reports take centerstage this week, with Wednesday's expected consumer price index and Thursday's producer price index. These offer a preview of the core personal consumption expenditures -- or PCE -- price index, due on Dec. 20. That index is seen as the Fed's primary inflation gauge.

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DOW JONES FALLS

On Monday, the Dow Jones Industrial Average declined 0.5%, while the S&P 500 and Nasdaq both dropped 0.6%.

Among the best companies to watch on the stock market today are Broadcom, BlackRock, Embraer and Trip.com.

Dow Jones components making notable moves were Amazon.com, Apple, Microsoft and Travelers.

Travelers featured in this Stocks Near A Buy Zone column.

Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.

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DOW JONES: TRAVELERS EYES BUY POINT

Dow Jones leader Travelers is just below a 269.05 buy point in a cup-with-handle base, according to MarketSurge pattern recognition. Shares gained 0.9% Tuesday.

Outside the Dow Jones index, AI giant Broadcom is approaching a 185.05 double-bottom entry after Monday's bullish move. Broadcom stock moved down 0.3% early Tuesday.

BlackRock is rapidly approaching a 1,068.34 buy point in a four-weeks-tight pattern. BlackRock stock moved up 0.8% in premarket trading.

Embraer is in buy range above a 37.30 flat-base entry after a three-day win streak. Shares climbed 1.3% Tuesday morning.

Trip.com shares soared 8.7% Monday, staging a breakaway gap past that a 69.67 buy point. During a breakaway gap, investors can use the high price of the first five-minute bar as a reasonable entry. For Trip.com, that places the buy point at 76.75. The Chinese travel stock declined nearly 3% Tuesday morning.

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STOCK MARKET TODAY: COMPANIES TO WATCH

These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.

 
Company Name      Symbol  Correct Buy Point  Type Of Buy Point 
Tradeweb                       136.13            Flat base 
Sherwin-Williams               392.57            Flat base 
Broadcom                       185.05          Double bottom 
TJX                            121.13            Flat base

Source: IBD Data as of Dec. 9

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TESLA STOCK

Electric-vehicle giant Tesla rallied 0.9% premarket Tuesday, on pace to extend a win streak to four sessions.

Tesla stock topped out Monday at 404.80, its highest price since November 2021 when Tesla stock traded as high as 414.50.

DOW JONES LEADERS: AMAZON, APPLE, MICROSOFT

Among Dow Jones components in the Magnificent Seven, Amazon stock has rallied sharply in recent sessions, decisively retaking a 201.20 buy point and hitting new highs. It added 0.1% in premarket trading Tuesday.

Shares of Apple are in buy range above a flat base's 237.49 entry as they hit new highs this week. The stock was up 0.5% Tuesday morning.

Microsoft shares fell 0.4% Tuesday morning. The stock closed Monday at its highest level since late July.

Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.

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IBD: Dow Jones Futures Fall As Inflation Data Looms; Nvidia Slides To Key Level

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