The major stock market indexes traded mixed on Tuesday, ahead of Wednesday's inflation report. The Dow Jones and S&P 500 shined, holding near highs of the day. Investors kept their powder dry ahead of the first batch of bank earnings, due on Friday. Legendary investor Warren Buffett just told Nikkei Asia that "he intends to add to his investments in Japanese stocks."
The Dow Jones inched up 0.5% and traded at a two-month high. The Nasdaq shed 0.3% while the S&P 500 edged 0.2% higher. The blue chip index hit a six-day high. The iShares Russell 2000 ETF led the upside, gaining 0.9%.
NYSE and Nasdaq volume rose sharply as more traders returned from the holiday weekend. The Nasdaq 100-tracking Invesco QQQ Trust ETF fell 0.5%, setting off a conflict with rising blue chips and small caps. The Innovator IBD 50 ETF fared better than major indexes, rallying 0.9%.
Crude oil gained 2% to $81.33 per barrel. The 10-year U.S. Treasury yield added 3 basis points to 3.45%. The CME FedWatch tool shows around 70% odds for a quarter-point rate hike at the May 3 meeting.
Gold futures edged up 0.7% to $2,019 per ounce. The SPDR Gold Trust ETF climbed 0.6% along with the yellow metal.
The German DAX inched up 0.4% while the Paris CAC pulled ahead 0.9%. The London FTSE crept 0.6% higher.
Bitcoin exceeded $30,000 for the first time since June, rising 3.2% to $30,350. Cryptocurrency exchange Coinbase added 7.5% along with the digital currency.
Busy Dow Jones And Stock Market Week
Look for March consumer inflation numbers on Wednesday and March producer prices on Thursday. The numbers will offer clues into the Fed's next rate decision.
First-quarter earnings season for the volatile banking sector kicks off Friday morning.
Big banks reporting include JPMorgan Chase, Citigroup and Wells Fargo.
Warren Buffett Wants These Japanese Stocks
Warren Buffett wants to buy more Japanese stocks, according to an interview with Nikkei. He said there are a few he is thinking of.
In August 2020, Berkshire Hathaway took a 5% stake in Japanese investment trading groups Itochu, Mitsubishi, Mitsui, Sumitomo and Marubeni. Berkshire increased its stake to 7.4% in November 2022.
Buffett speaks fondly about these diverse holdings and likens them to Berkshire Hathaway. He also likes their share buybacks and high dividend yield programs.
Berkshire shares notched up 0.7%. The Tokyo Nikkei 225 advanced 1.1%.
Drug Stock Falls On Trial News
Moderna fell 2.7% after failing to enroll enough cases in a late-stage trial of its experimental flu vaccine. MRNA is an S&P 500 big loser today.
CarMax jumped 10.7% after it reported better-than-expected December-ended earnings but fell short on revenue. The move sent shares back above the 50-day line. CarMax is the S&P 500's leader today.
Simply Good Foods edged up 0.5% after the company's president bought 6,912 shares of the nutritional food company. The stock is forming a base.
Gold miner Newmont pared earlier losses, dropping 1.5% after raising its offer for Newcrest Mining to around $19.5 billion.
Dow Jones Today: Fitness, Solar Stocks Break Out
IBD 50 stock Array Technologies climbed 4.9% after Wolfe Research initiated coverage with an outperform rating and 25 price target.
Shares of the solar-panel tracking technology company are in an undefined base with a 24.69 buy point. Analysts expect 119% full-year EPS growth in 2023 and 43% in 2024.
IBD 50 stock Xponential Fitness gained 1.9%, regaining an ascending base buy point at 30.80. XPOF is in the 5% buy zone that reaches to 32.34.
The boutique fitness chain announced its digital platform Xponential+ for LG electronics Smart TVs. The service offers unlimited strength training, cardio, Pilates, yoga and stretching exercise programs to customers in over 240 countries.
The relative strength line hit a 52-week high, as indicated by the Blue Dot on the MarketSmith weekly chart.
D.R. Horton popped 3.7% and broke out of a cup-with-handle base with a 99.50 buy point.
Market Rally Fades, But These Stocks Flash Buy Signals; Inflation Report Due
More Breakouts
Ensign Group increased 1.6% and broke out of a cup base, rising above a 99.62 buy point. The nursing and assisted-living facilities stock has gained over 16% from March lows. Analysts expect 13% full-year 2023 EPS growth, then a dip to 10% in 2024. Ensign reports Q1 earnings in late April.
Auto parts retailer O'Reilly Automotive rose 0.3%, easing from earlier gains after hitting the 874.04 buy point of a cup base. The stock was a recent IBD 50 Stocks To Watch pick.
Performance Food rose 1.5% and topped the 61.01 buy point of a cup-with-handle base in weak price and volume action.
Footwear maker Skechers rose 2.8% and broke out of a cup-with-handle base, topping a 47.80 buy point. Shares are in a buy zone to 50.19. Volume was below average.
Building materials supplier Builders FirstSource rose 3.3%, hitting the 90.31 buy point of a flat base. Volume was a healthy nearly 50% above average.
The relative strength line hit a 52-week high.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
