The Dow Jones Industrial Average fell on Tuesday after a tough session on Monday. China-Based Actions Ali Baba (BABA), JD.com (JD) and Pinduo-duo (PDD) rose sharply as China’s Covid-19 concerns eased.
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Tuesday’s modest dose of economic news includes the Case-Shiller home price index for September and November consumer confidence figures from the Conference Board at 10 a.m. The Case-Shiller home price index fell 1.24% in September from the previous month.
Looking forward to the rest of the week, the ADP’s national employment report and the Commerce Department’s preliminary third-quarter GDP estimates are due out on Wednesday. Weekly jobless claims and inflation data are Thursday, while the Labor Department’s November jobs report is Friday.
Finally, Fed Chairman Jerome Powell will speak at the Brookings Institution on Wednesday.
hibett (HIBB) reported earnings ahead of Tuesday’s open. HIBB shares fell more than 12% in morning trading.
Earnings reports later this week include CrowdStrike (CRWD), General dollar (DG) and Intuitive (INTU). Dow Jones stock is also included Selling power (CRM), as well as Snowflake (SNOW), Ultimate Beauty (ULTA) and Working day (WDAY).
Chinese stocks outperformed strongly on Tuesday morning as Chinese health authorities took steps to ease concerns over Covid-19 lockdowns and politics. Alibaba jumped 6% and JD.com 8%. Pinduoduo added 4.3% to Monday’s breakout move.
Dard Restaurants (IRD) and Year (ROKU) both saw analysts downgrade early on Tuesday, pushing their respective stocks lower. DRI stock fell more than 1%, while Roku stock fell 4.5%. On the rise, United Parcel Service (UPS) rose 2% after Deutsche Bank upgraded the stock to a buy rating.
Electric vehicle giant You’re here (TSLA) was trading down 0.5% on Tuesday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were slightly lower after the stock market opened today. Both Tesla and Apple are heavily exposed to the circumstances in China.
IPO Leader Array Technologies, IBD Leaderboard stock Arista Networks (A NET), Celsius (CELH) and Chubb (CB) — as well as the names of the Dow Jones Boeing (BA), caterpillar (CAT) and Chevron (CVX) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard Stock and was recently an IBD Stock of the Day. Boeing is an IBD SwingTrader stock and was one of four leaders featured in this week’s Stocks Near A Buy Zone column. Celsius was Monday’s IBD 50 Stocks To Watch pick.
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Dow Jones Today: Oil Price, Treasury Yields
After Tuesday’s opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite fell 0.15% in morning action, with Chinese names supporting the index in early action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.1% early Tuesday, and the SPDR S&P 500 ETF (SPY) lost 0.15%.
The 10-year Treasury yield rose to 3.75% on Tuesday morning, holding near recent lows. Last week, the 10-year Treasury yield closed at 3.69%, its lowest close since Oct. 4. Meanwhile, US oil prices rebounded 2% after hitting their lowest level since December 2021 on Monday. West Texas Intermediate futures were trading just below $79 a barrel.
Stock market rally
On Monday, the stock market posted steep losses, with the tech-heavy Nasdaq composite selling 1.6%. The Dow Jones Industrial Average fell 1.45% and the S&P 500 lost 1.5%.
The Big Picture on Monday commented: “The S&P 500 fell back below the 4,000 level, just three sessions after reclaiming it. The Nasdaq remained in a sideways range, still above its 50-day moving average The Dow, for its part, fell back below the 34,000 mark.”
Now is an important time to read IBD’s The Big Picture column amid current stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Boeing, Caterpillar, Chevron
Aerospace giant Boeing fell 3.7% on Monday, falling back below the 173.95 cup basis buy point. Look for a decisive rally in this entry before considering a purchase of Boeing shares. Boeing shares rose 1% on Tuesday.
Caterpillar, a member of the Dow Jones, is about to take over the 238 point of purchase from its cutter base, according to IBD MarketSmith pattern recognition, and is about 2% below entry. CAT stock gained 0.8% on Tuesday.
The CAT stock boasts an impressive 96 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.
Energy giant Chevron fell 2.9% on Monday, dropping its buy point of 182.50 in a consolidation basis. Shares of CVX rose 1.7% on Tuesday morning, rebounding along with oil prices.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Array, Arista, Celsius, Chubb
Leading solar and IPO stock Array Technologies gave up its buy point of 22.40 in a cup with handle during Monday’s fall, according to pattern recognition IBD MarketSmith. Shares are about 3% below entry. Further weakness would trigger the sell rule reducing losses by 7% to 8%. ARRY stock gained 0.6% on Tuesday morning.
IBD Leaderboard Arista Networks stock remains in the buy range above the buy point of 132.97 from a choppy base despite Monday’s 1.5% loss. ANET stock traded down 0.3% on Tuesday.
Energy drink maker Celsius fell 1.3% on Monday as the stock continues to form a cup base with a buy point of 118.29. Monday’s weakness could be the start of a potential handle that offers a lower entry. The stock was down 0.6% on Tuesday.
Chubb is trading just below the 216.10 one-cup buy point with a handle on Monday after the session’s slight losses. The 5% buy zone will reach 226.91 if stocks regain entry. The insurance giant was down 0.1% on Tuesday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla stock edged higher on Monday as the stock continues to rebound from recent lows. Last week, the stock hit its lowest level since November 23, 2020, hitting a new 52-week low at 166.19. Tesla shares are about 55% off their 52-week high and significantly below their 50- and 200-day moving averages.
Shares of the electric vehicle giant fell 0.5% on Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold 2.6% on Monday, falling below their 50-day support level. Apple iPhone Pro production could be 6 million units lower due to civil unrest and Covid restrictions in China, according to reports. The stock is more than 20% off its 52-week high.
Apple shares fell 0.2% on Tuesday.
Microsoft slipped 2.3% on Monday, falling for a second consecutive session. Stocks continue to hold above the 50-day line. The software giant remains around 30% off its 52-week high. Microsoft shares fell slightly on Tuesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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