Stocks resumed their rally after a rocky start Tuesday with major indexes piling up gains as investors mulled hotter-than-expected February consumer price index data. Contributing to the gains on the stock market today was key artificial intelligence leader Nvidia (NVDA) and database giant Oracle (ORCL).
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The February CPI rose 0.4% as expected and higher than January’s 0.3% rise. But the index was up 3.2% vs. the 3.1% projected on an annual basis.
The February core numbers, which exclude food and energy, rose 0.4% vs. the 0.3% gain expected from economists. It also came in 3.8% higher vs. 3.7% estimate on a 12-month basis. The higher numbers support the Federal Reserve holding off on interest rates cuts until possibly the June meeting. The CME Watchtool shows a 9.1% chance of a quarter-point rate cut in May and a 62.9% chance in June from its current fed-funds rate of 5.25% to 5.50%.
The Nasdaq gained 1.3% in recent action. The Dow Jones Industrial Average added 0.8%, while the S&P 500 also bumped up 1%. The small-cap Russell 2000 edged higher.
Volume rose on both the New York Stock Exchange and the Nasdaq compared with the same time on Monday.
The Invesco QQQ Trust (QQQ) exchange traded fund added nearly 1%. The Innovator IBD 50 ETF (FFTY) showed strength and popped 1.6% on the stock market today.
The 10-year Treasury yield added 4 basis points to 4.15%, while West Texas intermediate crude oil rose to more than $78.40 a barrel.
Nvidia stock came back to life and gained more than 4% in recent action. Shares started to recover after a two-day pullback from their all-time high of 974 on Friday. Nvidia stock lost 7.5% during the two-day slump.
Stock Market Today: Oracle Rallies After Earnings
Oracle stock gapped up by double digits in huge volume after the company reported better-than-expected third quarter earnings and in-line sales late Monday. Quarterly profit grew 16% on a 7% sales rise.
The database software stock broke out of a long, undefined base with a 127.54 buy point before retreating below the entry. Shares also broke a line of resistance around 117. Oracle stock is on pace for its largest percent increase since Dec. 10, 2021, when it rose 15.61%, according to Dow Jones Market Data.
On Holding (ONON) gapped down around 14% in heavy volume following the Swiss footwear maker’s surprise fourth-quarter loss and lower-than-expected sales. The stock fell below its 50-day and 200-day moving averages.
Kohl’s (KSS) sank more than 2% after the retailer beat fiscal fourth-quarter profit estimates but missed on net revenue views. It also gave a fiscal 2024 sales outlook that was below analyst forecasts. Kohl’s stock fell below its 50-day line.
Archer Daniels (ADM) popped more than 4% even after the company missed fourth-quarter adjusted earnings and sales views. But the company gave full-year 2024 adjusted earnings outlook that topped estimates. The agricultural products company also authorized an additional $2 billion stock buyback under its current program.
Stock Movers Today: Southwest Stock Descends
Southwest Airlines (LUV) tumbled more than 15% after announcing it would cut its full-year outlook due to Boeing’s reduced aircraft delivery of its 737 Max planes. Shares sank from a cup-with-handle base and fell below its 50-day and 200-day lines.
The drop flashed a sell signal. Southwest stock is on track for its largest one-day percentage decrease since March 12, 2020, when it fell 15.11%, according to Dow Jones.
Meanwhile, Dow stock Boeing (BA) sank around 3% on the news and fell further below its 50-day line. The aircraft and aerospace stock was the biggest loser on the Dow on Tuesday. Shares have lost more than 29% thus far this year.
Gold ETF Tops Buy Zone
S&P Gold Shares ETF (GLD) pulled back 0.9% on Tuesday after nine straight days of rising. The gold stock pulled back into the 5% buy zone of a double-bottom base with a 191.36 buy point.
Finally, bitcoin’s price stood just below $72,000. Crypto-related stock Coinbase (COIN) eased from larger gains and was down 0.6% after Raymond James upgraded the stock to market perform from underperform.
MicroStrategy (MSTR), which owns a large amount of bitcoin, jumped more than 2% on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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