Major stock indexes bounced off lows in late trading to end Tuesday's session. The Dow Jones Industrial Average traded 0.5% lower at 4 p.m. ET. The blue chip index has held its 50-day moving average since rebounding in late January.
The S&P 500 was flat at the closing bell while the Nasdaq outperformed with a 0.6% gain.
Small-cap Russell 2000 rose over 0.2% while the Innovator IBD 50 Fund outperformed with an impressive gain of 2%.
Volume on the NYSE and Nasdaq was significantly higher compared to the same time on Monday.
Crude oil traded at $79.16 per barrel, falling over 1%. The yield on the 10-year Treasury note rose 5 basis points to 3.77%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34089.79 | -156.14 | -0.46 |
| S&P 500 | (0S&P5) | 4136.15 | -1.13 | -0.03 |
| Nasdaq | (0NDQC ) | 11960.15 | +63.36 | +0.57 |
| Russell 2000 | 192.53 | -0.07 | -0.03 | |
| IBD 50 | 24.06 | +0.48 | +2.04 | |
Last Update: 4 PM ET 2/14/2023 |
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Inflation, Elections and Stock Market
January's CPI of 0.5% matched expectations and was higher than December's 0.1%. While that immediately hiked the chance of two or even three rate hikes in March, May and June, the course in 2023 remains uncertain as Fed rate action tries to target inflation numbers. Inflation is currently at 6.4% whereas two quarter-point hikes will bring interest rates to 5.00% to 5.25%.
Financial markets are currently pricing in quarter-point hikes in March and May, and possibly a third in June or July.
According to Bel Air Investment Advisors, the third year of the election cycle has returned 13.5% stock gains since 1928. The current cycle has been a typical one, going by historical records of election cycles and the stock market, with a strong 2021 followed by a weak 2022.
Stocks Moving Today Outside Dow Jones
Warren Buffett's Berkshire Hathaway cut its stake in Taiwan Semiconductor , Activision Blizzard and Bank of New York and increased its stake in Louisiana Pacific in the fourth quarter, according to reports. It also added $3 billion in Apple shares, its top holding, raising its total stake to 5.8%.
In the third quarter, the value investor made substantial purchases of Taiwan Semiconductor, Louisiana Pacific and Jefferies Financial Group. The fund also increased its holdings in Occidental Petroleum and Paramount Global, and slashed its position in U.S. Bancorp.
BRKB shares are in a cup-with-handle base and 3% below a buy point of 321.42.
Restaurant Brands, parent company of Burger King and Popeyes, Tim Hortons and Firehouse Subs is selling off after earnings. Shares plunged below their 50-day line.
Dow Jones component and Warren Buffett's long-term holding Coca-Cola fell despite strong earnings and outlook Tuesday. Higher prices that drove 2022 revenue will likely continue in 2023, according to CEO James Quincey. Shares are below their 50-day line.
Global Foundries gapped up over 8% after strong earnings as it breaks out of a cup base at a 69.40 entry.
First Solar fell after Evercore downgraded the stock to in-line from outperform, raising the price target to 157, from 150. Shares have fallen below the 50-day moving average.
Top BRKB holding Occidental Petroleum got an upgrade to buy from neutral from Goldman Sachs. Shares rose over 2% ahead of BRKB's quarterly filing and may offer an entry at 76.21.
Palo Alto Networks stock rose 2% after Goldman initiated coverage of the cybersecurity company with the buy rating, citing diversification. Shares are rebounding from their 200-day moving average.
Data analytics firm Palantir has gapped up over 20% after earnings, surging above their 200-day line.
Arista Networks broke out of a cup base with a buy point of 140.92.
Dow Jones Leader
Elsewhere, Dow Jones leader Apple faced quality issues with new India manufacturing facilities. According to reports, just half of casings made in the new plant are good enough for assembly at iPhone city in China. Shares were slightly lower at the end of the trading session on Tuesday.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
