The Dow Jones Industrial Average plunged 500 points on Tuesday morning, signaling a weak start to the shortened holiday week. Tesla shares fell after the company reported weaker deliveries than expected in the second quarter.
Netherlands-based manufacturer of chip equipment ASML Holding (ASML) fell sharply as chip stocks continued to roll in the wake of Micron technologyits (MU) weak quarterly report on Friday.
Tesla (TSLA) traded down 3% early Tuesday. Meanwhile, Chinese electric car giant BYD (BYDDF) reported strong sales in June, but the share still fell 2%. Elsewhere, Dow Jones has technology leaders apple (AAPL) and Microsoft (MSFT) were both sharply lower after today’s stock exchange opening.
In a volatile stock market environment, Dow Jones is leading Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth (UNH), as well AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta services (PWR), is among the stocks to be seen. Remember that ongoing volatility in the stock market is a reason to stay defensive.
UnitedHealth is an IBD Leaderboard action. Bristol became the IBD Stock Of The Day on June 22nd. AutoZone featured in last 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 lost 1.7%, while the S&P 500 fell 1.6%. The technology-heavy Nasdaq composite fell 1.4%. Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Among exchange-traded funds, the Nasdaq 100 tracking Invesco QQQ Trust (QQQ) fell 1.4%. The SPDR S&P 500 ETF (SPY) lost 1.6% in early trading.
The 10-year government interest rate ticked down to 2.81% on Tuesday after last week’s fall to 2.88%, which led to the 10-year government interest rate approaching below 3% for the first time since 7 June. In mid-June, it reached its highest level since April 2011, at 3.48%.
Meanwhile, US oil prices fell more than 4%, with West Texas Intermediate trading at around $ 103.50 a barrel. In early March, the WTI briefly topped $ 130.
Volatility in the stock market
The stock market posted solid action on Friday, when the major stock indices noted moderate gains. Nasdaq rose 0.9% on Friday, slightly behind the rise of almost 1.1% from the Dow Jones Industrial Average and the S&P 500.
Friday’s The Big Picture column commented: “After publishing one of the worst results of the first half in decades, the stock market got off to a better start in the second half of 2022.”
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Four Dow Jones shares to see now
Dow Jones shares to see: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is about 1% below a double-bottom base 181.84 buy points after Friday’s 1.1% gain, according to IBD MarketSmith chart analysis. JNJ shares fell 0.3 percent Tuesday morning.
The JNJ stock shows a 94 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.
Drug giant Merck picked up again on Friday, but is still about 2% below the flat base’s buying point of 95.02. Early Tuesday, the stock was up 0.5 percent.
The healthcare giant and the IBD Leaderboard share UnitedHealth are in the buying area past a double-bottom buying point of 507.36. Shares fell almost 2% on Tuesday morning.
4 top growth stocks to see in timera stock market rally
Top stocks to look at: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone shares moved further above the cup-with-handle 2,130.60 buy point on Friday, amid a 0.5% rise. The stock fell 1 percent on Tuesday.
Bristol Myers ended up about 2% below a flat base 78.72 buy points after Friday’s loss of 0.2%. Shares are now trying to find support around their most important 50-day line. Bristol Myers shares fell 0.6 percent on Tuesday.
Eli Lilly rose 0.15% on Friday, extending a winning streak to three sessions. Shares are in the 5% buying area which goes up to 329.81. Eli Lilly shares fell 0.4% early Tuesday.
Quanta Services tracks a cluttered cup with handles that have a buying point of 138.56, according to IBD MarketSmith chart analysis. Last week, stocks found strong support around the 50-day line, which is a key level to see. Quanta shares fell more than 2% on Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 1.2% on Friday, taking a four-day losing streak. The stock threatened to give up these gains on Tuesday morning, and fell 3%.
Over the weekend, Tesla said it delivered 254,695 cars in the second quarter, below estimates for 264,000. Covid blockades and restrictions significantly reduced Shanghai plant production for much of the quarter. CEO Elon Musk has also cited problems in the supply chain to limit production elsewhere.
The stock is strong 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 45% lower than the record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 1.6% on Friday and are well below their long-term 200-day line. The stock is about 24% of its 52-week high. Apple shares fell 1.3 percent on Tuesday morning.
Software leader Microsoft climbed 1.1% on Friday, as it appears to be picking up again after finding strong resistance around its main 50-day line last week. The stock closed about 26% of its 52-week high. Microsoft shares fell 1.7 percent early 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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