The Dow Jones Industrial Average was up on Tuesday morning as the market leaned towards a modest rebound after Monday’s stock crash. More inflation data came out with the Labor Department’s production price index early Tuesday, while the long-awaited two-day Federal Reserve meeting will also begin.
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Oracle (ORCL) reported gains after closing on Monday. Oracle shares rose 12% in morning trading after the company reported better-than-expected earnings and sales results.
Shares of Amazon (AMZN) and China supported the Nasdaq. Amazon rose 1%, seeking a five-day sell-off, after JPMorgan reiterated its stock overweight rating and its 200-day price target. China Internet ETF (KWEB) was up 3% and the iShares MSCI China ETF (MCHI) was up 2% in early trading.
Electric vehicle giant Tesla (TSLA) reversed nearly 1% on Tuesday. Executive Director Elon Musk confirmed the release of the full self-driving software in two weeks. Elsewhere, technology leaders Dow Jones Apple (AAPL) and Microsoft (MSFT) wiped out the first gains after the stock market opened today.
Amid a deepening stock market correction, Dow Jones leader Chevron (CVX) as well as Carlisle (CSL), HealthEquity (HQY), Northrop Grumman (NOC) and World Wrestling Entertainment (WWE), are among the main actions of IBD to see on Tuesday.
World Wrestling Entertainment is an IBD qualifying scholarship. And WWE appeared in the Stocks Near A Buy Zone column this week.
Dow Jones today: Treasury yields, oil prices, Fed meeting, inflation
Following Tuesday’s opening, the Dow Jones Industrial Average was up 0.1% and the S&P 500 was flat. The Nasdaq technology compound reversed 0.2% more in morning trading.
Among the publicly traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker fell 0.1%. The SPDR S&P 500 ETF (SPY) rose 0.15% in early trading.
The 10-year Treasury yield fell to 3.35% on Tuesday morning after rising to 3.36% on Monday, its highest level since April 2011. Meanwhile, oil prices Americans remain close to recent highs, with West Texas Intermediate trading above $ 121 a barrel. In early March, the WTI briefly topped $ 130 a barrel.
Labor Department data showed producer prices rose 0.8% in May after rising 0.5% in April, meeting Econoday estimates. Producer inflation rose 10.8% year-on-year, slightly below the 11% estimate. The producer price index is a measure of price strength based on the selling prices received by domestic producers for their production.
The Fed will begin its last two-day policy meeting on Tuesday, and the central bank is expected to raise its benchmark interest rate by half a percentage point on Wednesday. But expectations that the Fed will be forced to move even more aggressively this year are rising since Friday’s hot inflation report.
Sale of the bag
The stock market sold on Monday as major stock indexes ended in heavy losses, starting the week with a downward note.
Monday’s column The Big Picture commented: “After falling in the opening, the indices remained weak at the close. The four-day streak of losses of the main indices is now the largest since March 2020, according to .
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Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Chevron, Merck, travelers
Dow Jones leader and energy giant Chevron gave up 174.86 points of purchase from its flat base, according to analysis by the IBD MarketSmith chart, after falling 4.6% on Monday. CVX’s stock has a perfect composite score of 99 IBD, according to the IBD stock review. Investors can use the IBD compound rating to easily measure the quality of the fundamental and technical metrics of a stock. CLC shares rose 1.5% Tuesday morning.
Merck (MRK), a stock of Dow Jones and IBD Big Cap 20, fell even further below the 89.58-point buyout of its handle cup on Monday, as shares fell another 2.5%. Shares gave up support around its 50-day key line on Friday, which is a sell signal. Shares of MRK were slightly lower on Tuesday morning.
Insurance giant Travelers (TRV) continues to build a flat base with a point of purchase of 188.08. Shares are further below their 50-day line after falling 0.9% on Monday. Passenger shares rose 0.4% on Tuesday.
Two most important growth stocks to observe in the current stock market correction
Actions to watch: Carlisle, HealthEquity, Northrop, WWE
The recent existence of IBD on the day Carlisle shows a flat base with a buy point of 275.23, although shares fell 4.6% on Monday to give up its 50-day line. Shares of Carlisle fell 0.4% Tuesday morning.
HealthEquity is plotting a cup with a handle with a buy point of 66.23, as shares reversed 0.9% more on Monday. Stocks are finding support around their 50 day key line and are only 2% of the last entry. Keep in mind that the weak market environment should keep you out of the way. Shares rose 1.1% on Tuesday morning.
Northrop Grumman is trying to find much-needed support for its 50-day moving average, but it remains about 3% below the 477.36 point of purchase of its cup with handle. NOC shares rose slowly on Tuesday.
IBD Leaderboard’s World Wrestling Entertainment shares are testing the 63.81 buy-off from a flat base, according to analysis from the IBD MarketSmith chart, as WWE shares rose on Monday. On May 25, the shares staged a sharp break after entry. But stocks are just above the latest entry in the new wave of sales in the market. WWE shares rose 0.5% on Tuesday.
According to the rating table’s comment, the relative strength of WWE’s line of action is at an all-time high and has been gaining ground since January. The base is the first stage, a bonus for the graphic.
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Tesla stock
Shares of Tesla slipped 7.1% on Monday, adding to the 3.1% drop on Friday. Shares threatened to add to those losses, trading nearly 1% on Tuesday morning.
Shares are still well below their 50- and 200-day moving averages. Shares of Tesla traded up 1,243.49 on November 4. Shares are around 48% of this all-time high.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones equities, Apple shares were up 3.8% on Monday, reaching their lowest level since June 2021. Shares are well below their 200-day-long line. term and are around 28% of their 52-week maximum. AAPL shares traded on Tuesday as Deutsche Bank maintained its buy rating but lowered its target price from 200 to 175.
Microsoft’s software leader lost 4.2% on Monday and remains well below its 50- and 200-day lines. Shares closed more than 30% of their 52-week high. MSFT shares did not change this Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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