The Dow Jones Industrial Average fell Tuesday morning, while technology stocks plunged, as Snap (SNAP) plunged 39% after warning that earnings and earnings in the second quarter would be below the low end of their own past outlook. Meanwhile, Zoom video The (ZM) stock climbed around 5% after reporting better-than-expected results for the first quarter late Monday.
Together with Zoom, Advance Auto Parts (AAP), Heico (HEI) and reported late Monday, while Abercrombie & Fitch (ANF), AutoZone (AZO), Best buy (BBY) and Ralph Lauren (RL) is among the companies that report from Tuesday morning.
The AAP share fell around 4% while the Heico share fell almost 2%. AutoZone shares rose 2% as Abercrombie shares plunged 30%. And the Best Buy share rose 2.8%. And Ralph Lauren fell more than 1% in early trading.
Electric vehicle giant Tesla (TSLA) traded down 4% Tuesday morning. Elsewhere, Dow Jones tech executives Apple (AAPL) and Microsoft (MSFT) lost 1.15% and 1.1% respectively in the current stock market.
While the stock market rise continues to struggle, Dow Jones leads Chevron (CVX) and Merck (MRK) – together with Livent (LTHM), Exxon Mobile (XOM), Eli Lilly (LLY), and World wrestling Entertainment (WWE) – is among IBD’s best stocks to watch on Tuesday.
Microsoft is an IBD Leaderboard stock. Merck is on IBD SwingTrader. Livent and World Wrestling Entertainment were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones today: Treasury interest rates, oil prices
After Tuesday’s opening, the Dow Jones Industrial Average fell 0.75%, and the S&P 500 lost 1.4%. The technology-heavy Nasdaq plunged 2.7% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.9%. SPDR S&P 500 ETF (SPY) fell 1.1%.
The 10-year government interest rate ticked down to 2.81% on Tuesday morning after closing on Monday at 2.85%. On Friday, the 10-year government interest rate closed at its lowest level since April 26. Meanwhile, US oil prices climbed less than 1%, with West Texas Intermediate crude trading above $ 110 a barrel.
Struggling stock market rally
The major stock indices showed solid gains on Monday. Monday’s action was a step in the right direction after last week’s heavy sales, but it was not enough to switch market status back to a confirmed upward trend.
Monday’s The Big Picture column commented: “Remarkably, the volume was significantly lower than on Friday, by 17% on Nasdaq. In the previous session, trading may have received a boost from stock and index options that expired the same day. Even then, the slower activity indicated that institutional investors held back from committing large amounts of capital to the market upturn. “
If you are new to IBD, consider taking a look at the stock trading system and the basics of CAN SLIM. Recognizing chart patterns is a key to the investment guidelines. IBD offers a wide range of growth charts, such as Leaderboard and SwingTrader.
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 continues to build a flat base with a buying point of 174.86, according to IBD MarketSmith chart analysis. The stock recovered from its 50-day line on Monday, rising 2.3%. The CVX stock fell a fraction on Tuesday.
The CVX stock has a perfect 99 IBD Composite Rating, per 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 SwingTrader stock, is trading towards the top of a buying area above a cup-with-handle buy point of 89.58, as the shares rose 0.3% on Monday. The purchase area of 5% goes up to 94.06. The MRK share was slightly higher on Tuesday morning.
The stock’s relative strength line reached several new highs on Friday, a strong indicator of excess returns in the stock market.
Four top growth stocks to see in timera stock market rally
Stocks to watch: Livent, Exxon, Eli Lilly, WWE
Lithium producer and Tesla supplier Livent is approaching an early buying point of 29.68, rising 3.7% on Monday, according to IBD MarketSmith chart analysis. Meanwhile, the Livent stock continues to accumulate on the right side of a cupbase that has a conventional entry of 33.14. Keep an eye on a potential handle to offer a more risk-optimal entry. LTHM shares fell almost 1% on Tuesday morning, following increased earnings prospects from the lithium giant Albemarle (ALB).
Energy giant Exxon Mobil is at the top of a buying range above a cup-with-handle buying point of 89.90, rising 2.2% on Monday. Shares are at the top of the 5% buying range which goes up to 94.40. XOM shares fell a fraction on Tuesday.
Pharmaceutical giant Eli Lilly rose 1.25 percent on Monday. Shares in the IBD Leaderboard stock are supporting around their 50-day moving average line and approaching a flat base buying point of 314.10. An early buy trigger of 309.54 is also in play. Eli Lilly shares were flat on Tuesday.
World Wrestling Entertainment is one of the best stocks to watch after it closed on Monday, within striking distance of a flat base’s buying point of 63.81. WWE shares rose 1.3% on Monday. extend a winning streak to five sessions. The stock fell 1 percent Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 1.7% on Monday, picking up a small portion of Friday’s fall of 6.4% and taking a three-day losing streak. Shares fell 4% on Tuesday morning, threatening to return Monday’s rise. The stock is strong below its 50- and 200-day moving averages.
The Tesla stock traded as high as 1,243.49 on November 4 and is more than 45% away from this record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 4% on Monday. The stock is still well below its long-term 200-day line. The AAPL share fell 1.15 percent on Tuesday.
Software leader Microsoft increased 3.2% on Monday, but stays sharply below the 50- and 200-day limits. The stock closed more than 25% of its 52-week high. MSFT shares fell 1.1% 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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