Dow Jones Futures: Market Right At Key Levels As CPI Inflation Report

Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures, with the CPI inflation report looming large. Dow giant Walt Disney (DIS) headlined after-hours earnings.

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The stock market rally had another strong session Wednesday. The S&P 500 and Nasdaq composite came right up to last week’s highs, a key resistance area. Fortinet (FTNT) flashed a buy signal, a rare growth stock in play as many of Wednesday’s big movers were beaten-down former leaders.

DIS stock, MGM Resorts (MGM), Twilio (TWLO) and Molina Health (MOH) reported earnings late Wednesday. Expedia (EXPE) and Datadog (DDOG) are on tap early Thursday.

DIS stock jumped in extended trade and TWLO stock skyrocketed, but both are well off highs. MGM stock rose modestly, near a breakout. MOH stock was not active overnight

Inflation Report

But the big news before Thursday’s market open will be the January consumer price index. The Labor Department will release the CPI report at 8:30 a.m. ET. Economists expect to see the consumer price index up 7.3% vs. a year earlier, above December’s 39-year high of 7%.

The Federal Reserve is going to start raising interest rates in March, with some speculation of a 50-basis point hike, so a hot inflation reading could trigger stock market selling and spiking Treasury yields. But a tame inflation reading could fuel a relief rally in stocks and bond prices.

Fortinet stock rose 4.8% on Wednesday to 329.84, reclaiming its 50-day line, though on light volume. Investors could have taken position in FTNT stock, either as an early entry or as an IBD Long-Term Leader. After this week, Fortinet stock should have a base with a 371.87 buy point. The relative strength line for FTNT stock is just below record highs, according to MarketSmith analysis.

Cybersecurity peer Palo Alto Networks (PANW) has a similar chart to that of Fortinet, but PANW stock has earnings on tap next week, raising the risks.

Fortinet joined IBD Leaderboard, with EXPE stock already on that list as an earnings options play. FTNT stock also is an IBD Long-Term Leader.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value, with a boost from Disney stock. S&P 500 futures sank 0.15% and Nasdaq 100 futures fell 0.3%.

The 8:30 a.m. ET inflation data and weekly jobless claims figures will likely swing Dow Jones futures before the open.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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Stock Market Rally

The stock market rally opened solidly higher and gradually strengthened during the session.

The Dow Jones Industrial Average climbed 0.9% in Wednesday’s stock market trading. The S&P 500 index popped 1.45%. The Nasdaq composite jumped 2.1%. The small-cap Russell 2000 rose 1.9%.

The 10-year Treasury yield dipped 2 basis points to 1.93%. U.S. crude oil…