The Dow Jones industrial average lost more than 500 points Tuesday morning amid the release of economic data in a holiday-shortened week. Meanwhile, the retail giants house deposit (HD) and walmart (WMT) reported quarterly earnings. Home Depot shares fell 5.2% and Walmart shares tumbled before easing 0.6%.
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Among other companies reporting earnings, Fluorine (FLR), Harmony Biosciences (HRMY) and Hunter (HUN) were on the move.
Fluor’s shares rose 0.55% at the open, while Harmony’s shares tumbled 10%. In addition, Huntsman shares fell 4.4%.
On the economic front, February’s preliminary composite Purchasing Managers’ Index, or PMI, showed the services index returned to expansion territory, while the manufacturing index remained in contraction. The services index had a reading of 50.5, better than the estimate of 47.2, while the manufacturing index came in at 47.8 versus an estimate of 47.3.
Meanwhile, existing home sales numbers from the National Association of Realtors fell to 4.0 million in January, below estimates, and down from 4.02 million in December.
stock market today
Electric vehicle leader Tesla fell nearly 2% on Tuesday morning. Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) were markedly lower after the stock market opened today.
IBD Classification Table airbnb (ABNB) dexcom (DXCM), Inspire medical systems (INSP) and wing stop (WING), as well as Dow Jones stocks Caterpillar (CAT), JPMorgan Chase (JPM) and Sales force (CRM) — are among the top stocks to buy and watch amid the recent stock market rally.
Airbnb is an IBD Leaderboard stock. Inspire and Dexcom were recent subjects of EII Stock Of The Day. Salesforce appeared in the Stocks column near a buy zone last week.
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Dow Jones Today: Oil Prices, Treasury Yields
After the market opened on Tuesday, the Dow Jones Industrial Average fell 1.5%, with Home Depot and Walmart causing most of the damage. The S&P 500 was down 1.3%. And the tech-heavy Nasdaq composite fell 1.7% in morning stock as jd.com (J.D.) and PDD shares (PDD) led a sell-off among China’s e-commerce stocks.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 1.3% and the SPDR S&P 500 ETF (SPY) was down 1% early Tuesday.
The 10-year US Treasury yield fell to 3.82% on Friday, snapping a three-day winning streak but still closing out with solid weekly gains. Then on Tuesday morning, the 10-year yield jumped to 3.9% as bonds fell, even as a safe-haven rise sent the US dollar higher against key foreign currencies.
Oil prices struggled to end a four-day losing streak, rising less than 1% Tuesday morning. West Texas Intermediate futures held below $77 a barrel.
stock rally
On Friday, the Dow Jones Industrial Average rose 0.4%, but the S&P 500 lost 0.3%. The Nasdaq fell 0.6%.
Friday’s Big Picture column commented: “The overall picture remains bullish for now, justifying 60-80% exposure. But remember to watch for sell signals within your portfolio. The price should come down. Also watch out for sharp breaks below the 50-day or 10-week moving averages.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, JPMorgan, Salesforce
Dow Jones’ top stock Caterpillar is still in the buying range above a flat-bottomed entry of 239.85 as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. . Shares rose 0.5% on Friday and continue to hold above the 50-day line. CAT shares fell 0.8% on Tuesday morning.
Banking giant JPMorgan remains in the 5% buy range above a flat-based buy point of 138.76 after a 0.3% gain on Friday. The 5% buy zone reaches a high of 145.70. JPM shares fell 0.8% early Tuesday. JPM shares show a solid 95 out of a perfect 99 IBD composite rating, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
In the Stocks Near a Buy Zone column from last week, Salesforce is building a cup handle that has a buy point of 178.94. Shares lost 1.75% on Friday, ending 7% away from entry and approaching potential support at the 200-day line. CRM shares fell another 0.8% early Tuesday.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top stocks to buy and watch: Airbnb, Inspire
Airbnb’s new IBD leaderboard shares soared last week, surpassing a 121.50 buy point of a mug with a handle. While extending from this entry, the breakout gap places an alternative entry at 135, and the stock is just below that price after Friday’s sharp decline. ABNB shares were down 1% on Tuesday morning.
Background: The firm operates an online marketplace for accommodation. Their main offerings are homestays for vacation rentals. While tourism has been hit hard by the coronavirus pandemic, it continues to roar after strict lockdowns.
IBD Recent Day shares of Inspire Medical Systems fell for a second day on Friday, but are still in the 5% buy area beyond the 262.64 buy point of a flat base, according to IBD MarketSmith pattern recognition. . The buy zone reaches a maximum of 275.77. INSP shares show a modest 84 IBD composite rating. INSP shares fell 0.9% early Tuesday.
Background: The company sells an implantable device to treat sleep apnea through electrical stimulation of nerves, a process called neurostimulation.
Dexcom, Wingstop Eye Latest Purchase Points
Dexcom shares fell 2.1% on Friday, adding to losses on Thursday. The stock added a handle to the base of a cup, creating a buy point of 121.21. The stock was down 1.2% on Tuesday.
Background: On February 9, Dexcom reported better-than-expected quarterly results. The pace comes as Dexcom’s new continuous glucose monitor, or CGM, gains traction in the US and Europe. These body-worn devices track blood sugar in real time. The Food and Drug Administration approved Dexcom’s new device, the G7, last year.
Wingstop is directly in the buy range above a buy point of 169.04 on a cup handle after last week’s breakout move. The chase zone rises to 177.49. WING shares fell 1.1% on Tuesday, despite a Baird note that upheld its outperform rating and raised its 12-month price target to 190, from 175.
Background: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore, and the United Kingdom. The company added 40 net stores in the prior quarter. Earnings are due Wednesday.
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Stocks to Buy and Watch on the Stock Market Rally
Here are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
| Company Name | Symbol | correct point of purchase | Point of Purchase Type |
|---|---|---|---|
| Inspire medical systems | (IN SP) | 262.64 | flat base |
| dress | (VC) | 152.20 | cup bottom |
| Caterpillar | (CAT) | 239.95 | flat base |
| airbnb | (ABNB) | 135.00 | breakout gap |
| JPMorgan | (JPM) | 138.76 | flat base |
| wing stop | (TO THE) | 169.04 | mug with handle |
Source: EII data as of February 21, 2023
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Tesla Stock
Tesla shares rose 3.1% on Friday, recouping much of Thursday’s 5.7% loss. Despite its strong rally since January 6, stocks are still below the 200-day line, and that key level is shaping up to be an area of potential resistance. Shares closed Friday about 46% below their 52-week high.
Shares threatened to give back some of Friday’s gains, falling 1.8% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 0.75% on Friday. Shares are around 14% below their 52-week high and rising on the right side of a new base. Apple shares fell 1.4% on Tuesday.
Microsoft shares extended a losing streak to three sessions, falling 1.6% on Friday. Shares are still above their 200-day line and about 18% below their 52-week high after recent gains. MSFT shares were down 1.5% on Tuesday morning.
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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