Dow Jones Futures Rise as CPI Inflation Report Looms along with Key Reports from Delta Air Lines and Taiwan Semiconductor
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, showed a slight rise in overnight trading. Investors closely await the CPI inflation report scheduled for Wednesday. Additionally, key reports from Delta Air Lines (DAL) and Taiwan Semiconductor (TSM) are in the spotlight.
The stock market rally experienced a slight upward trend on Tuesday, with cautious investors bracing for market movements prior to the CPI inflation report. While the market showed positive breadth, several leaders faced pressure.
Nvidia and Google’s Parent Company, Alphabet
Nvidia, undercutting recent lows on Tuesday, found key support amid Google’s parent company, Alphabet, announcing the development of a new in-house AI processor with designs from Arm Holdings. This move reduces Alphabet’s reliance on Nvidia chips. Furthermore, Intel launched its own AI chip to compete with Nvidia. Google stock, on the other hand, continued to rise and approached a buy zone. ARM stock initially bounced, but eventually reversed downward. Intel, after marking fresh lows earlier, experienced a slight uptick.
Tesla’s Extended Gains and Taiwan Semiconductor’s Upcoming Reports
Tesla stock extended gains following Elon Musk’s statements regarding robotaxis, reaching key resistance levels. Furthermore, Taiwan Semiconductor is set to release its March and first-quarter sales figures, which hold broad implications for the sector. As a major chip-equipment buyer and a chip maker for various companies, Taiwan Semiconductor plays a critical role in the industry. TSM stock showed a rise to 145.40, with possible indications of a new base.
Delta Air Lines Earnings and Outlook
Prior to market open, Delta Air Lines is expected to report a 45% increase in earnings compared to the previous year, with a 6% rise in first-quarter revenue. This release marks the beginning of earnings reports for U.S. carriers. Delta stock currently trades near a cup-with-handle buy point.
Market Outlook and Opportunities for Investors
Investors are advised to exercise patience during a sideways market, observing the decisive movements of major indexes and leading stocks. While Tuesday’s market showed mixed results for various stocks, market direction may become clearer following the release of the CPI inflation report. Earnings season is also approaching, which has the potential to bring significant movements to the market. As of now, investors are encouraged to build their watchlists, as leading stocks across sectors undergo important tests of key support levels and potentially form new bases.
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