The Dow Jones Industrial Average fell sharply on Tuesday, as government interest rates fell from Monday’s rise. Retail giant Goal (TGT) fell more than 9% after warning that profits would fall and announced plans to quickly dispose of excess inventory. The Target news sent retail stocks scattered, taking the hardest early hits on the S&P 500, Nasdaq 100 and Dow Jones Industrial Average.
Important income movers include Academy sports and outdoor life (ASO), Dave & Buster’s (PLAY) and G-III clothing (GIII). The academy rose 6%. Dave & Buster’s jumped more than 7%, while G-III shares fell more than 1% early.
Electric vehicle giant Tesla (TSLA) fell 3% on Tuesday. Elsewhere, Dow Jones tech executives apple (AAPL) and Microsoft (MSFT) were both evenly lower in today’s stock market. Walmart (WMT) and Home Depot (HD) led Dow’s early declines.
In the midst of the ongoing stock market rise, Dow Jones is leading Chevron (CVX) and Merck (MRK) – together with Albemarle (ALB), Eli Lilly (LLY), Northrop Grumman (NO C), Vertex Pharmaceuticals (VRTX) and Zim integrated shipping (ZIM) – is among IBD’s best stocks to look at on Tuesday.
Albemarle is an IBD Leaderboard action. Vertex was featured in this week’s Shares near a buy zone column. Zim was a featured IPO leader.
Dow Jones today: Treasury interest rates, oil prices
After Tuesday’s opening, the Dow Jones Industrial Average fell 0.8%, while the S&P 500 fell 1%. The technology-heavy Nasdaq composite sold 1.4% at fair value. Keep in mind that trading in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.4%, while the SPDR S&P 500 ETF (SPY) lost 1% in early trading.
The 10-year government interest rate threatened to return part of Monday’s rise, falling to 3.03% on Tuesday morning. Meanwhile, US oil prices were slightly lower, but remained well within the latter range, with the West Texas Intermediate just over $ 118 a barrel.
Finance Minister Janet Yellen will appear before the Senate Finance Committee on Tuesday and the House Ways and Means Committee on Wednesday.
Stock market rally
The large stock indices showed a weak positive action on Monday, when the stock market rise continued.
Monday’s The Big Picture column commented: “Friday’s fall cost Nasdaq 2.5% in gains and S&P 500 1.6%. Then came Monday’s disappearing gains. A tentative conclusion is that the rapid rise needed a break. With only one distribution day so far in the large indices, investors can still afford some exposure to equities. “
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Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.
Five Dow Jones shares to see now
Dow Jones shares to see: Chevron, Merck
Dow Jones leader and energy giant Chevron is trading just above a flat base buying point of 174.86, according to the IBD MarketSmith chart analysis, after Monday’s loss of 0.4%. The 5% buying zone tops at 183.60. The CVX stock traded slightly higher on Tuesday.
The CVX stock has 98 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
Merck, a Dow Jones and IBD Big Cap 20 stock, is still in the buying range past a cup-with-handle buy point of 89.58 despite a five-day losing streak, as shares fell 0.1% on Monday. The purchase area of 5% goes up to 94.06. The MRK share rose 0.5 percent on Tuesday morning.
The stock’s relative strength line reached a new high in mid-May, but is now retreating sharply.
Five top growth stocks to see in timera stock market rally
Shares to buy and look at: Albemarle, Eli Lilly, Northrop, Vertex, Zim
The IBD Leaderboard stock Albemarle is about 8% away from a cup with a handle buy point of 273.78, according to the IBD MarketSmith chart analysis. In recent weeks, Albemarle passed an early buying point near 248. ALB shares fell 1% on Tuesday morning.
Pharmaceutical giant Eli Lilly rose 0.6% on Monday after the company delivered a promising update for its experimental obesity treatment. The Lilly share is trading just below a flat base’s buy point of 314.10 after an eruption on 27 May. LLY shares fell on Tuesday.
Northrop Grumman broke out last week past a cup-with-handle buy point of 477.36 and moved further above the entry on Monday. The defense contractor is also moving over a trend line within the handle that had an early entry of around 464. The NOC shares were slightly lower on Tuesday morning.
Vertex Pharmaceuticals tracks a cup with handles with a buying point of 276.10. For the time being, the shares see some support around the 50-day line. A strong bounce from this area is likely to lead to an eruption. Conversely, a sharp break in the 50-day line will mean that the base process needs more time. Vertex shares fell 0.6 percent on Tuesday.
IPO Leader Zim Integrated tracks a cup with handles that has a purchase point of 68.80. The shares are about 1% away from the correct buying point after Monday’s fall of 0.7%. ZIM shares lost more than 1% early Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 1.6% on Monday, restoring a small portion of Friday’s 9.2% dive. Shares threatened to erase this week’s early rise, falling 3% on Tuesday morning.
The stock falls further below its 50- and 200-day moving averages. The Tesla stock traded as high as 1,243.49 on November 4th. The shares are about 43% lower than the record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 0.5 percent on Monday. The stock is still well below its long-term 200-day line. AAPL shares fell 1.1 percent on Tuesday.
The company’s WWDC event started on Monday. Apple has named features in its next smartphone operating system that will power the upcoming iPhone 14 and older compatible phones. It also introduced a second-generation Mac processor for two new laptops.
Software leader Microsoft fell 0.5% on Monday, and remains sharply below its 50- and 200-day lines. The stock closed more than 20% of its 52-week high. MSFT shares fell 0.9% on Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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