Dow Jones Rises As Inflation Steps Closer To Fed Target; Tesla Rises Ahead Of Deliveries

The Dow Jones Industrial Average gained 0.2% in its first hour on Friday, after economic data revealed a cooling of inflation.

S&P 500 increased 0.5% by 10:30 a.m. ET on the stock exchange today. The Nasdaq has outperformed the market with a gain of 1%.

The volume on the NYSE was higher than the same time Thursday.

The Innovator 50 ETF (FFTY), which tracks the small-cap Russell 2000, rose by 0.7% while the Russell 2000 rose by 0.6%.

The PCE price index, the Fed's preferred measure of inflation, rose by 0.4% in August. This is an increase from the 0.2% increase in July and is below the consensus estimate for 0.5%. The PCE index increased 3.5% on an annual basis after increasing 3.3% in July. Econoday also predicted a rise of 3.5% for Wall Street.

The core PCE index, excluding volatile energy and food prices, rose by 0.1%. This is a slight decrease from the 0.2% in July. The core PCE index was down at 3.9% on an annualized basis compared to 4.3% in July. This brings inflation closer towards the Fed's 2% target. The second-quarter GDP figure of 2.1%, published on Thursday, was below the consensus estimate of 2.3%.

The University of Michigan consumer sentiment index rose from 67.7 to 68.1 in September, compared with August's reading of 67.7.

The yield on the benchmark Treasury 10-year note dropped 6 basis points to 4.53 %.

Crude oil dropped nearly 1%, to $90.96 per barrel.

Dow Jones Stocks

Nike shares (NKE), which were released late Thursday, surged in the early hours of Friday trading. The Beaverton-based athletic clothing maker's revenues were $12.9 billion in the first quarter of this year, which is 2% more than the previous year. The earnings per share of 94 cents increased by one cent. Since May, shares have been on a downward trend and are yet to regain the 50-day moving median.

The Dow Jones Tech Leaders also rose. Intel (INTC), which has risen above its 50-day trend line, is still below the 37.19 purchase point that was reached in a breakout early this month.

Stocks moving today

Carnival (CCL), which rose, then quickly retreated and dropped after the third quarter results were released. After a loss a year ago, earnings of 86c per share indicated a profitable third quarter. Sales of $6.85bn also reached an all-time record.

Analysts predict lower Tesla (TSLA) deliveries due to plant shutdowns in preparation for new launches, such as the updated Model 3 or Cybertruck. They also attribute this to lower inventories after price reductions.

Stocks rose by 3% on Monday, ahead of the Q3 delivery data. Tesla delivered 466 140 vehicles in a second quarter record. According to FactSet, analysts now expect 462,000 cars in the third quarter. TSLA is at a buy-point of 278,98.

Corcept Therapeutics, which develops therapies for disorders caused by steroid hormones like cortisol (cortisol), plunged through its 50-day mark. As the shares fell below the 30.14 buy point, the fall activated the 7% rule. A patent trial with Teva Pharmaceutics (TEVA), according to reports, could cause a setback for Corcept.

IBD 50 Stocks

Synopsys has cleared the 50-day line in IBD 50 and is now near a buy point of $468.03.

Meta Platforms (META), a company that specializes in the development of mobile applications, is taking back its 50-day line and forming a cup with a purchase point of 326.20. The stock is also trading tight since early September, and has an earlier entry of 312.87. The relative strength line has reached a new peak. Meta has seen a 152% increase in this year.

Modine (MOD), the Stock Of The Day for Thursday, is aiming to reach 49.60 after a 132% increase this year. The stock has been under accumulation over the past five quarters among fund managers, giving the stock a strong Accumulation/Distribution Rating of A-.

Early trading was also good for software stocks on the IBD 50 Growth list, including Atlassian (TEAM), Zscaler ZS and CrowdStrike CRWD.

ZS stock has recovered from the 50-day level and is now the newest addition on Leaderboard. Duolingo's (DUOL), which was at a 162.20 point, soared beyond a buy zone. Rio Tinto's (RIO) shares rose after news broke of a new partnership with Fortune Minerals. The two companies will be working together to improve yields for cobalt and Bismuth recovery.

Analysts at Stifel upgraded Brinker, the parent company of Chili's, Maggiano's, and Maggiano's, to buy, from hold, with a new price target of $45 from $0.38. The shares rose and reached the 50-day line.

Blue Apron is a leader in the food industry.