Dow Jones Futures Rise On Surprise Inflation Report; Nvidia, Tesla Rally

Dow Jones futures rose on Tuesday morning, buoyed by a surprise inflation report that showed a slower-than-expected increase in consumer prices. The report, which indicated that the Consumer Price Index (CPI) rose 0.1% month-over-month, was lower than the expected 0.2% increase. This unexpected news sent stocks higher, with the Dow Jones Industrial Average (DJIA) futures gaining 0.2% vs. fair value, along with S&P 500 futures and Nasdaq 100 futures.

Nvidia (NVDA) and Tesla (TSLA) were among the early winners on the stock market today, with Nvidia stock rebounding 1.3% and Tesla stock rallying 2.2%. Nvidia's rebound comes after a four-day losing streak, while Tesla's rally extends its win streak to six sessions. The electric vehicle giant topped out this week at 409.73, its highest price since November 2021.

The surprise inflation report has significant implications for the Federal Reserve's monetary policy. If inflation continues to slow, investors could take it as an all-clear signal, suggesting that the Fed would dial back its interest rate increases. This would be welcome news for stocks, as higher interest rates tend to be bad news for equities. However, Fed speakers last week, including Christopher Waller and Loretta Mester, were adamant that the central bank would remain vigilant in the fight against inflation, suggesting that even a weaker CPI wouldn't change the course of monetary policy in the near term.

The hopes for softening inflation are causing the U.S. dollar to continue to slide. The U.S. Dollar Index, which measures the greenback against a basket of six peers, was down 0.8% on Monday, with the dollar almost 3% lower from its 20-year high reached last week. The weaker dollar is adding strength to crude prices, with futures contracts for oil gaining 1.3% to nearly $88 a barrel.



The Dow Jones Industrial Average (DJIA) and other major indexes traded higher Tuesday, as investors awaited a key inflation report from the Labor Department due later in the morning. Two early winners on the stock market today were Nvidia (NVDA) and Tesla (TSLA). Ahead of the opening bell, Dow Jones futures rose 0.2% vs. fair value, along with S&P 500 futures. Tech-heavy Nasdaq 100 futures also gained 0.2% vs. fair value in morning trades. The 10-year Treasury yield ticked lower to 4.79% early Tuesday, holding at its highest level since November 2023. And oil prices eased but remain near recent highs, with West Texas Intermediate futures trading around $78.25 per barrel.



Among exchange traded funds, the Invesco QQQQ Trust (QQQ) rose 0.2%, as the SPDR S&P 500 ETF (SPY) moved up 0.2% ahead of the open. Nvidia Investors Should Closely Watch These 3 Telltale CluesStock Market Today: Nvidia, Tesla Rally; PPI Inflation ReportNvidia rebounded 1.3% Tuesday morning, looking to snap a four-day losing streak. Shares decisively gave up their 50-day moving average Monday, with a 3% tumble. They also fell more than 7% below a double-bottom entry at 146.54, which is a sell signal. That means the latest breakout attempt in Nvidia stock has failed and investors will need to be patient and wait for another entry. Tesla stock rallied 2.2% Monday, bouncing back from recent losses and holding above its Jan. 2 low. Shares are more than 17% off their all-time high, which was set on Dec. 18. The electric-vehicle giant looked to extend those gains Tuesday, as it raced 1.2% higher in premarket trading. KB Home (KBH) was a key earnings mover Tuesday morning. KB Home jumped 10% in premarket trading after the homebuilder reported better-than-expected results for the fourth quarter. Up next, the Labor Department's producer price index for December is due out Tuesday at 8:30 a.m. ET. The PPI is expected to rise 0.3% on the month, with a year-over-year increase of 3.3%. Core wholesale inflation is expected to rise 0.2%, with an annual increase of 3.4%, per Econoday estimates. Game On Again As Nvidia Takes Aim At AppleDow Jones ReboundsOn Monday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 rose 0.2% and the Nasdaq dropped 0.4%. Following last week's bearish action, now is a good time to check IBD's The Big Picture for an update on exposure level. Among the best companies to watch in the current stock market are Burlington Stores (BURL), Interactive Brokers (IBKR), Intuitive Surgical (ISRG) and Meta Platforms (META). Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT) and Walmart (WMT). Meta and Walmart 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, and.Dow Jones: Walmart Eyes Buy PointDow Jones retail giant Walmart is building a flat base that offers a 96.18 buy point, according to MarketSurge pattern recognition. But it must first find support at the 50-day line. Shares edged lower Tuesday.Outside the Dow Jones index, Burlington Stores is close to a 298.88 buy point in a flat base. The retail stock rose 0.5% in premarket action Tuesday.Interactive Brokers is just below a cup base's 193.42 entry. The stock moved up 1% Tuesday.Intuitive Surgical gained 0.6% Monday, and moved close to a 556.23 flat-base entry. Intuitive stock was flat Tuesday.Social media platform Meta is in a 5% buy zone above a 602.95 buy point as it bounced from its 50-day moving average Friday. Meta stock lost 0.9% in Tuesday's premarket trading.Nvidia, Apple And Tesla Highlight How To Handle The Stock Market TodayStock Market Today: Companies To WatchThese are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.Company NameSymbolCorrect Buy PointType Of Buy PointInteractive Brokers (IBKR)193.42Cup baseAmerican Express (AXP)307.82Flat baseIntuitive Surgical (ISRG)556.23Flat baseMeta Platforms (META)602.95Flat baseSource: IBD Data as of Jan. 13Covid-Era Darling Finds AI Companion. Now It Seeks A Breakout.Dow Jones Leaders: Amazon, Apple, MicrosoftBesides Nvidia, another Dow Jones component in the is, which dropped 0.2% Monday. Amid its recent move into new highs in mid-December, the e-commerce giant is sharply extended above a 201.20 buy point, but is now pulling back to its 50-day line. It edged up marginally in premarket actionTuesday.Shares of Apple closed sharply below a flat base's 237.49 entry, falling further below their 50-day moving average Monday. But they rebounded 0.3% early Tuesday.Microsoft shares gained 0.1% Tuesday morning, as they continue to consolidate below their 50-day line.Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on gr