The Dow Jones Industrial Average saw gains on Wednesday as the Labor Department released the Producer Price Index, a measure of inflation, which showed prices paid to producers rose above estimates. Additionally, investors were eagerly awaiting the release of minutes from the Federal Reserve’s policy meeting. Nvidia stock also rallied after receiving a price-target hike from TD Cowen. The tech-heavy Nasdaq composite saw a 0.7% increase in morning trading, while the S&P 500 gained 0.4%. Oil prices continued to decline, with West Texas Intermediate futures trading below $85 a barrel.
Despite lingering below their 50-day lines, the Nasdaq composite and S&P 500 showed signs of strength in Tuesday’s session, prompting IBD’s recommended invested percentage to remain at 20%-40%. Tesla stock rose 1.4% early Wednesday, while Apple and Microsoft shares traded mixed at the start of the market. UnitedHealth, Chevron, and Arista Networks were among the best stocks to watch, with UnitedHealth set to report third-quarter results soon. Meta Platforms also showed promise, with its stock reaching a buy range after surpassing a buy point of 312.87. Overall, the stock market showed signs of a new uptrend, but investors were advised to cautiously increase exposure and closely monitor stock market strength.
In terms of Dow Jones stocks, Chevron remained above its 50-day line following strong gains, while UnitedHealth saw a small dip ahead of its third-quarter results release. Arista Networks experienced a slight reversal after a brief win streak, but remained within a new buy area. DraftKings continued to consolidate, while Meta Platforms approached its third-quarter results and steadily climbed within its buy range. Modine, IBD’s 50 Stocks To Watch pick, appeared poised to break out, with shares finishing just below their entry on Tuesday. The best stocks to buy and watch in the current market included Meta Platforms, Caterpillar, Duolingo, and DraftKings. Tesla stock reached a buy point, closing at its highest level in weeks, while Apple and Microsoft looked to regain momentum after slight declines.