The Dow Jones Industrial Average was lower on Tuesday ahead of Wednesday’s key inflation report: the Labor Department’s consumer price index. Vaccine maker Novavax ( NVAX ) fell 31% after cutting its 2022 revenue guidance due to lack of demand for its Covid-19 vaccine.
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American International (AIG), Perrigo (PRGO), Planet Fitness (PLNT) and Ralph Lauren ( RL ), Shockwave Medical ( SWAV ), and Take-Two Interactive ( TTWO ) were key companies reporting earnings on Tuesday.
AIG shares rose 0.9% as Perrigo recovered more than 2%. Planet Fitness lost nearly 2%, while Ralph Lauren rose about 1%. Shockwave jumped 8% in early trade. And video game maker Take-Two fell about 5%.
Chip stocks fell sharply again on Tuesday after Nvidia’s ( NVDA ) Monday earnings warning. Nvidia shares fell another 2.6%. Advanced Micro Devices ( AMD ) fell 2.4%. And the VanEck Semiconductor ETF ( SMH ) was down 2.4% early Tuesday.
Tesla (TSLA) traded down nearly 2% on Tuesday. Elsewhere, Dow Jones technology leaders Apple ( AAPL ) and Microsoft ( MSFT ) fell 0.4% and 0.3%, respectively, after the market opened today.
Nike ( NKE ) was the Dow’s biggest decliner, down 2.6% after a downgrade and price target cut by BNP Paribas, due to increased uncertainty over the company’s guidance.
In the strengthening stock market environment, shares of Dow Jones Coca-Cola ( KO ) and UnitedHealth ( UNH ), as well as Monolithic Power Systems ( MPWR ), Ollie’s Bargain Outlet ( OLLI ), and Vertex Pharmaceuticals ( VRTX ), were are among the main actions. to shop and look.
UnitedHealth and Vertex are IBD-rated stocks. Ollie’s and Vertex were featured in this week’s Stocks Near A Buy Zone column. Monolithic Power was Thursday’s IBD Stock of the Day. Vertex is also the brainchild of IBD SwingTrader.
Dow Jones today: Treasury yields, oil prices, CPI
The Dow Jones Industrial Average fell 0.2% in morning trade. The S&P 500 fell 0.4% and the Nasdaq tech composite fell 1.1%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1.1%. And the SPDR S&P 500 ETF ( SPY ) fell 0.4%.
The 10-year Treasury yield rose to 2.80% on Tuesday morning, rising after Monday’s drop to 2.76%. The 10-year Treasury yield is recovering after hitting its lowest level since early April last week.
Meanwhile, US oil prices appeared to be recovering from recent losses as West Texas Intermediate futures gained about 1% on Tuesday, trading above $91 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.
The Labor Department’s consumer price index is released early Wednesday. Econoday estimates call for consumer prices to rise 0.2% in July, down from June’s 1.3% jump. Inflation is expected to rise 8.7% in July from a year ago, down from June’s 9.1% year-on-year rise.
Stock Exchange meeting
On Monday, the Nasdaq erased a 1.6% gain and closed 0.1% lower. The S&P 500, up 1%, also lost 0.1%. The Dow Jones Industrial Average came out with a 0.1% gain.
Monday’s The Big Picture column commented: “Stock market faded to close near session lows. Bearish reversal marked rapid change in character from Friday: July jobs report surprisingly strong increased the odds of a rate hike of 75 basis points in September. However, the market regained its composure and closed near session highs.”
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Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Coca Cola, UnitedHealth
Dow Jones soft drink giant Coca Cola is building the right side of a flat base that has a buy point at 67.30. The stock is testing its 50-day line after last week’s losses. Shares of KO rose 0.2% on Tuesday.
Health insurance giant and IBD-rated UnitedHealth shares remain in buy range above the 518.80 buy points of its double-handle fund base amid 0.3% gain on Monday, according to IBD MarketSmith chart analysis. Shares rose 0.65% on Tuesday.
UNH stock scores a solid 94 out of a 99 IBD Composite Rating, according to the IBD Stock Review. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.
The 4 most important growth stocks to watch in the current stock market rally
Top stocks to watch: Monolithic, Ollie’s, Vertex
Thursday IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation with a buy point at 580.10. Meanwhile, shares are about 3% above an early entry of 514.80. Keep an eye out for a possible handle to offer another alternative point of purchase. Shares fell 3.1% on Tuesday.
Ollie’s Bargain Outlet is recovering from its 10-week line, a critical support level, putting the major discount retailer in a new buying zone. Shares are also cutting a handle after a big cup base, placing the last buy point at 72.37. The current price action is around 10% of this entry. Shares were up slightly early Tuesday.
IBD SwingTrader Shares of Vertex Pharmaceuticals rose 2.1% on Monday, breaking out of buy range beyond a cup with the handle entering at 279.23. The 5% chase zone rises 293.19. The stock’s June 23 breakout is back to normal after last week’s second-quarter results. Shares of Vertex were up 0.5% on Tuesday morning.
Join IBD’s experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares trimmed gains to 0.8% on Monday, recovering a small portion of Friday’s 6.6% slide. Shares lost 1.9% Tuesday morning.
Last week, Tesla shares hit their highest level since early May, but are now finding resistance around their 200-day line, which is a key level to watch. On Friday, the company announced that a 3-for-1 stock split will occur on August 24. The stock is about 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.3% on Monday, extending a losing streak to three sessions. The stock is building the right side of a new base. Shares were down 0.4% Tuesday morning.
Microsoft fell 0.9% on Monday, falling for the second day in a row. The software giant is still below its long-term 200-day line. Shares on Monday closed about 20% off their 52-week high and were down 0.3% early Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more growth stocks and the Dow Jones Industrial Average.
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