The major stock market indexes rose Monday, strengthening in the last hour, and traded near highs of the day. Investors were hopeful as they awaited Tuesday's CPI report, But volume was low.
The Dow Jones Industrial Average rose 0.9% and the S&P 500 gained 1%. The Nasdaq composite led the indexes, adding 1.7%, while the small-cap Russell 2000 was ahead 0.9%.
Volume on the NYSE and Nasdaq was considerably lower compared with the same time on Friday.
The Dow held support at its 50-day moving average, while the S&P 500 held above its 21-day exponential moving average. The Nasdaq remains above its 200-day moving average and its 21-day line. The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF rose 1.5%.
Crude oil rose 0.1% to $79.78 per barrel. The Energy Select Sector SPDR ETF trimmed 0.5% but held above its 21-day line.
Bitcoin futures dipped 1.1% to $21,540. The Innovator IBD 50 ETF rose 1.7%.
January consumer price index (CPI) data is due out Tuesday at 8:30 a.m. ET.
The core month-over-month change is expected to rise 0.5%, compared to December's 0.1% decline. The yearly change consensus shows a 6.2% increase, lower than December's 6.5%. The Fed will be looking for more disinflation to consider changes in future policy decisions.
The 10-year U.S. Treasury yield shed 1 basis point to 3.72%.
European markets were up, with the German DAX gaining 0.6% and Paris CAC 1.1%. The London FTSE added 0.8% to close out the trading day.
Stock Market Action: China Stocks Pop After Big Game Ad
Chinese e-commerce platform PDD Holdings popped 4.4% after airing a commercial for its Temu shopping app during the Super Bowl. It is uncommon for a Chinese company to buy Super Bowl time, costing millions of dollars.
The move lifted the IBD 50 stock above its 21-day exponential moving average. Shares have gained over 18% in 2023 so far.
Other China stocks rallied in sympathy, lifting KraneShares Trust CSI China internet ETF more than 3.5%,
Genetic sequencing provider Illumina rebounded 6.3% after last week's sell-off following a disappointing Q4 earnings release.
Norfolk Southern fell 0.7% after the EPA sent the railroad a general notice of potential liability, following an Ohio train derailment of hazardous chemicals Tuesday. Shares tested the 200-day moving average in heavy volume.
Monday.com jumped over 12% after reporting better-than-expected Q4 earnings per share and revenue.
Fidelity National Information Services gapped down over 14% in heavy volume, after reporting Q4 earnings and lowering 2023 guidance. The financial stock fell below its 50-day moving average, a bad sign, and is the S&P 500 biggest loser.
Cloud-based data analytics platform Teradata gapped up over 13% in heavy volume after beating Q4 top and bottom lines and raising Q1 EPS guidance.
Retail Upgrade And Earnings Ahead
Upscale-apparel retailer Ralph Lauren rose 3.5% in Monday's stock market after BofA Securities upgraded the stock to buy from neutral with a price target of 145. The stock is in the handle of a cup-with-handle base with 195.07 buy point.
Companies reporting this week include Dow Jones component Coca-Cola, Airbnb , Arista Networks, Deere and Crocs.
IBD 50 stock Cadence Design Systems rose 0.9% and is in a cup base with a 195.07 buy point. Lattice Semiconductor gained 1%.
Both companies reports earnings after the market close.
Speculative-growth fund ARK Innovation ETF bounced 1.2% after falling almost 14% following a reversal at resistance Feb. 2. Tesla is a major holding.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
