The major stock market indexes improved at midday Monday, with the S&P 500 maintaining a key level. Two key economic reports could affect the Fed's next policy move, which in turn could move markets this week.
The May consumer price index report is due Tuesday morning. According to Econoday, May's CPI is expected to rise 0.2% on the month, with the annual inflation rate easing to 4.1% from 4.9%.
The core CPI, excluding food and energy, is forecast to rise 0.4%, lowering the core inflation rate to 5.3% from 5.5%.
The May producer price index (PPI) is out Wednesday morning and is forecast to slow to 2.9% from 3.2% on a year-over-year basis.
These two reports could sway the Fed's policy decision. The Federal Reserve Open Market Committee meets Tuesday and Wednesday.
The 10-year U.S. Treasury yield added 4 basis points to 3.78%. The CME FedWatch tool now shows analyst consensus of over 70% odds for no rate hike at this week's meeting, and the remainder expect a quarter-point hike.
Index Moves
The Nasdaq strengthened its gain to 0.8%. The Dow Jones Industrial Average edged up 0.1%. The S&P 500 pulled ahead 0.3% and was just above the 4,300 level. The index met resistance there last August, which makes it an important level to watch.
The Russell 2000 was in line with the S&P 500 Index, adding 0.3%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF added 0.8% as some major techs showed strength. The First Trust Nasdaq 100 Equal Weighted ETF crept up 0.6%.
The Innovator IBD 50 ETF outperformed with a 1% increase.
NYSE volume was relatively flat and Nasdaq volume rose from Friday's levels at the same time.
Crude oil fell 3.2% to $67.92 per barrel. Gold futures edged 0.4% lower.
The price of Bitcoin shed 2.2% to $25,885 in sympathy with the smaller cryptocurrency coins that sold off on Saturday amid the SEC crackdown. Coinbase tumbled 5.1%.
European stocks closed higher, with the German DAX adding 0.9% and Paris CAC rising 0.5%. The London FTSE was the weakest, with only a 0.1% gain.
Stock Market Movers: Tesla Up Again
Leaderboard stock Tesla added another 1% in heavier-than-average daily volume, and is on track for its 12th consecutive gain. That would be its longest winning streak since June 2010.
Akero Therapeutics popped 6.6% and broke out of a saucer base. The buy zone from the 54.88 buy point goes to 57.62. The move came after Morgan Stanley raised its price target to 70 from 65 and maintained its overweight rating.
Biogen rose 1.9% and is rising from support in a pullback to the 50-day moving average. Late Friday, the company said a Food and Drug Administration (FDA) committee supported its Alzheimer's drug.
Chinook Therapeutics rocketed 57% in heavy volume on news it agreed to be acquired by Novartis for $3.2 billion in cash. Shares gapped out of a cup-with-handle base. NVS dipped 1.3% on the news.
Oracle rallied 6.6% ahead of its quarterly results after today's market close. A Wolfe Research analyst raised his rating to outperform from peer perform, with a price target of 130. Shares have reached the 20% profit target from a breakout at 91.22 in late March. With earnings due, investors have the option to lock in profits.
The Zacks consensus estimate is for adjusted profit of $1.58 a share, up 3% from a year ago. Revenue is seen rising 16% to $3.74 billion.
Adobe added another 3.1% on top of Friday's 3.4% rally. Shares are above a 451.15 buy point. The relative strength line hit a 52-week high. Adobe reports its May-ended quarterly results Thursday after the market close.
Cruise Line Stocks Take Off
Cloud-based software stock Integration Appliance, commonly known as Intapp, soared 8.6% in heavy volume and broke out of a base. The buy zone from the 47.04 buy point goes to 49.39.
Its relative strength line hit a new 52-week high on the weekly chart as shown by the blue dot, according to MarketSmith pattern recognition. Intapp was the IPO Stock of the Week. It has gained 90% this year so far.
Carnival jumped 13% after JPMorgan Chase upgraded the cruise line stock to overweight from neutral and raised its price target to 16 from 11. Shares are above the 5% buy zone from the 12.62 buy point. Carnival is the S&P 500's biggest gainer today.
IBD 50 stock Norwegian Cruise Line spiked 7.7% after JPMorgan Chase and BofA Securities raised their price targets on the stock.
The stock rose past a cup-base buy point of 18.12 and is in a buy zone to 19.03. Volume is heavy.
Nasdaq Slides On Acquisition
Nasdaq fell 13.2% on news it will buy bank and brokerage software company Adenza for $10.5 billion in cash and stock from private-equity firm Thoma Bravo. The acquisition is expected to close in the next six to nine months. NDAQ is the S&P 500's biggest loser today.
Advanced Micro Devices climbed 1.9% after KeyBanc raised its price target to 150 from 110 and maintained its overweight rating on the semiconductor company.
Bill shed 0.5% after Morgan Stanley downgraded the stock to equal weight from overweight and kept its price target at 105.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
