Stock Market Today With IBD Investor's Business Daily

The market initially breathed a sigh of relief that it didn’t get a hawkish statement from Fed Chairman Powell. He acknowledged that inflation is still too high, but he also said the Fed would slow down its bond selling, which could cause downward pressure on rates. Pinterest soared on bullish Q1 results; Booz Allen Hamilton and Aerovironment are building new bases.

The S&P 500 and Nasdaq pulled back from their 50-day lines to undercut their 21-day lines, awaiting the latest Fed meeting and other big news. Eli Lilly jumped on earnings, flirting with a buy signal.

While it’s nice to see indexes on the upswing, there’s more work to be done. Specifically, the 50-day line is looming for indexes and could be a place where bears wrestle control again. And don’t forget a heavy earnings week is on tap to add a potential catalyst for a trend change. Still, a number of individual stocks are looking promising. Carrier Global is working on cooling the artificial intelligence “heat wave.” United Rentals is shaping up a double bottom. Finally, Howmet Aerospace is still holding strong forming a flat base.

After last week’s bad break, Alphabet is trying to help the market get its mojo back. As stocks snapped back on Friday, Nvidia, Astera Labs and Cava flashed buy signals. In this extended edition of Stock Market Today, Alissa Coram and Mike Webster review the market’s changing character, levels to watch and how to adjust your portfolio – and your expectations – accordingly.

The first estimate to Q1 GDP came in at 1.6%, well below the 2.3% consensus. Core inflation on a year-over-year basis also came in above expectations, raising fears of stagflation. Stocks moved off lows even as the 10-year Treasury yield rallied above 4.70% and hit a five-month high. It’s been an orderly pull back for Southern Copper so far; Sweetgreen is holding support at its 10-week line; Blue Owl Capital is still in a buy zone ahead of earnings next week.

Breadth was weak all day even when the Nasdaq was near session highs. The 10-year yield rose near its high for the year, up 5 basis points to 4.65%. After earnings reports from META and ServiceNow, Microsoft and Alphabet are next up on the earnings calendar. Stocks to watch include Hubbell, Ingersoll Rand and Natera.