Futures for the Dow Jones Industrial Average and other major indexes were mixed Tuesday, as Wall Street reacted to hot inflation data from the Labor Department ahead of comments from Federal Reserve Chairman Jerome Powell. Meanwhile, GameStop (GME) briefly rocketed more than 130% on the stock market today, looking to extend Monday’s big gains.




X



In premarket action, Dow Jones futures added 0.1% vs. fair value as S&P 500 futures were barely higher. Tech-focused Nasdaq 100 futures dropped 0.1% ahead of the opening bell.

Early Tuesday, the 10-year Treasury yield ticked lower to 4.47%. Further, oil prices sank as West Texas Intermediate futures traded around $78.50 a barrel.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 0.4%, as the SPDR S&P 500 ETF (SPY) also fell 0.4%.

GameStop shares more than doubled Tuesday morning, on pace to add to Monday’s huge gains. The volatile stock was up 120% in recent action. Meanwhile, AMC Entertainment (AMC) was up more than 110% in premarket trading.

On Monday, Keith Gill, who sparked the meme stock rally during the pandemic, made his return to social media for the first time in three years. Gill, also known as Roaring Kitty, on Sunday night posted on social media platform X for the first time since June 2021. The post was an image of a meme implying he is “getting serious.”

Stock Market Today: PPI Inflation Report

Early Tuesday, the Biden administration announced new tariffs on $18 billion worth of Chinese imports, saying they were necessary to protect American industries from unfair competition.

Further, the Labor Department said that its producer price index, which is a key measure of wholesale inflation, rose 0.5% in April, with a 2.2% annual increase. The PPI was expected to rise 0.3% for the month of April, with a 2.2% annual increase, per Econoday estimates. And the core PPI rose 0.5% on the month, with a 2.4% year-over-year increase. It was estimated to rise 0.2% on the month and a 2.3% year-over-year increase.

Meanwhile, Fed chair Powell will participate in a moderated discussion at the annual meeting of the Foreign Bankers’ Association in Amsterdam. That discussion is expected to take place at 10 a.m. ET.

Key earnings movers Tuesday morning include Alibaba (BABA), Home Depot (HD) and On Holding (ONON).

Alibaba stock declined nearly 5% in early trading, while Home Depot shares rose 0.7%. On Holding rallied nearly 16% in premarket action.


Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.


Dow Jones Snaps Win Streak

On Monday, the Dow Jones Industrial Average moved down 0.2% to snap the eight-day win streak and the S&P 500 lost less than 0.1%. The tech-heavy Nasdaq composite gained 0.3%.

Investor’s Business Daily’s Big Picture column on Monday said: “The Cboe Volatility Index, commonly known as the VIX, fell to 12.55 Friday, reflecting a rapid cooling of investor fear since the index rose to 21.36 on April 19. The so-called fear gauge bounced Monday to 13.59. A calm market is not necessarily a bad sign. It reflects investor confidence. As the old Wall Street refrain goes, never short a dull market. Moreover, a pause seems quite appropriate if the stock market is gearing up to make an assault on its March highs.”

During Monday’s IBD Live show, the IBD Live team discussed the current trading conditions. IBD staffer Arnie Gutierrez shared his “giddy level” and why he likes to take some profits when a stock reaches an extreme level. Gutierrez also covered China mobile app and commercial staffing firm Kanzhun (BZ). Fellow IBD staffer Justin Nielsen went through the weekly industry group analysis and highlighted the current year-to-date underperformance by the Nasdaq vs. the S&P 500 so far.

Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.


Learn How To Time The Stock Market With IBD’s ETF Market Strategy


Stock Market Today: Best Stocks To Watch

NetApp (NTAP), NXP Semiconductors (NXPI), Taiwan Semiconductor Manufacturing (TSM)and Tradeweb Markets (TW) — plus Dow Jones components JPMorgan Chase (JPM) and Merck (MRK) — are among the best companies to watch on the stock market today.

JPMorgan and Taiwan Semi are featured in this Stocks Near A Buy Zone column.

An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, KKR (KKR) broke out past a flat base’s 103.48 buy point. Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.

To find more stock ideas, check IBD Stock Lists like IBD 50Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.


Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard


Dow Jones: JPMorgan, Merck

JPMorgan is rapidly nearing a flat base’s 200.94 entry following strong gains in recent weeks. Shares edged down on the stock market today.

Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock was flat Tuesday.


4 Top Growth Stocks To Watch In The Stock Market Today


Outside the Dow Jones index, NetApp is trading just below a 108.82 buy point in a double bottom, according to IBD MarketSurge. NetApp shares dropped 0.9% ahead of the open on Tuesday.

NXP Semiconductors is in buy range past a double-bottom entry at 251.96. Shares gained 0.3% Tuesday.

Chipmaker Taiwan Semiconductor is trying to break out past a 148.43 buy point in a double-bottom base in the wake of Friday’s strong monthly sales results. The stock rose 0.3% Tuesday.

Tradeweb is squarely in its buy range past a flat base’s 108.04 buy point, with a 0.7% fall Monday. The stock was flat Tuesday.


IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox


Stock Market Today: Companies To Watch

These are four stocks in or near buy zones in today’s stock market.

Company Name Symbol Correct Buy Point Type Of Buy Point
American Express (AXP) 231.69 Consolidation
Texas Roadhouse (TXRH) 157.12 Flat base
Chipotle (CMG) 3,023.98 Consolidation
Tradeweb Markets (TW) 108.04 Flat base
Source: IBD Data As Of May 6, 2024

Join IBD experts as they analyze leading stocks in the stock market today on IBD Live


Magnificent Seven Stocks: Nvidia, Tesla

Among Magnificent Seven stocks, Nvidia (NVDA) fell 0.7% while Tesla (TSLA) gained 0.7% Tuesday morning.

Nvidia stock rallied further above its 50-day moving average Monday. Shares of the artificial intelligence giant added a handle to its base Monday, taking the buy point down from 974 to 922.20. The AI leader is an IBD Leaderboard stock.

Tesla stock snapped a four-day losing streak Monday. Shares are right at their 50-day line following last week’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Tuesday’s stock market open.

Apple stock added 1.8% Monday, closing at its highest level since Feb. 12. Shares are back above their 200-day moving average and forming the right side of a new base. The stock dipped a fraction Tuesday morning.

Microsoft shares slipped 0.3% Monday, right at their 50-day line. The software giant is building a flat base that has a 430.82 buy point and the 50-day line will be a key hurdle. And Microsoft stock moved down 0.5% Tuesday.

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

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