The Dow Jones Industrial Average fell on Tuesday morning, as global markets struggled after the sudden shift in monetary policy by the Bank of Japan. The Dow Jones Industrial Average has fallen for four straight days, with Walt Disney and Nike leading the declines. Tesla stock saw its price target lower on several analyst firms on Tuesday.
Economic data due for release on Tuesday includes Consumer Confidence and Existing Home Sales. December Consumer Confidence is expected to rise to 101.0 vs. November’s 100.2. Meanwhile, the Econoday consensus number sees existing home sales for November falling further, to an annualized rate of 4.20 million versus October’s 4.43 million. Both readings are due at 10 a.m. ET.
Hey there The HEI Index rose 1.5% on Tuesday after the company reported better-than-expected quarterly earnings and sales results. general mills (GIS) fell 4% despite beating Wall Street’s sales and profit targets.
More earnings reports include this week micron technology (MU) and Dow Jones stock Nike (the).
steel dynamics (STLD) will join the S&P 500 and Super microcomputer (SMCI) will join the S&P MidCap 400 Index, which takes effect before the market opens on Thursday, according to the S&P Dow Jones Indices. Steel Dynamics jumped 0.7%, while SMCI jumped 6.7% in morning trading.
electric car giant Tesla (TSLA) fell more than 3% Tuesday morning after several price target cuts from Daiwa, Evercore ISI and Mizuho. Technology pioneers at Dow Jones an Apple (AAPL) and Microsoft (MSFT) was down after the stock market opened today.
IBD Stock Leaderboard Neurobiological Sciences (NBIX), Kosovo Liberation Army (KLAC), O’Reilly Auto Parts (orly) f United Rentals (URI) – So are the Dow Jones names Larva (Cat), Home Depot (HD) f United Health Group (UN) – Among the top stocks to consider on investors’ watchlists.
Neurocrine and United Rentals are shares of the IBD Leaderboard. UnitedHealth featured a stock column near the buy zone last week. Caterpillar and United Rentals were two recent companies to today’s IBD inventory.
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Dow jones today: oil prices and treasury yields
After the opening bell on Tuesday, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 lost 0.4%. The heavy Nasdaq Composite fell 0.7% in the morning move.
US trade largely resisted the sell-off that hit markets across Asia on Monday, after the Bank of Japan doubled the yield ceiling on its 10-year bonds to 5%. The move sent ripples through the global bond markets and caused a sharp rise in the yen. Nikkei 225 in Tokyo fell 2.6%, while other major markets in Asia closed broadly lower.
European markets recovered from the early blow and turned mixed near the middle of the session. US bonds fell, sending the 10-year yield up nine basis points to 3.66%, marking a third straight rise.
Among US exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) was down 0.6% and the SPDR S&P 500 ETF (SPY) was down 0.3% early Tuesday.
Meanwhile, US oil prices traded less than 1% higher on Tuesday, but were still on track to extend Monday’s gains. West Texas Intermediate crude futures rose to nearly $76 a barrel in morning trading. Natural gas prices fell more than 5% in early measures, heading for a third straight decline after falling 11% on Monday.
The stock market is under pressure
On Monday, technology and small-cap stocks underperformed again, with the Nasdaq Composite down 1.5% and the Russell 2000 down 1.4%. The Dow Jones Industrial Average held up at best, losing just 0.5%. The S&P 500 lost 0.8%, closing below the 50-day moving average for the second day in a row.
Monday’s The Big Picture column commented, “The legendary Santa Claus rally refers to the period between Christmas and the first two trading days of 2023. The Dow Jones Industrial Average has gained 1.38% for the period since 1950 while the Dow Jones Industrial Average has S&P 500 1.32%, according to data compiled by Dow Jones Market DataBoth indices traded higher about 78% of the timeThere are still no signs buyers are willing to hold onto falling knives through the end of the year, but skepticism may be high enough to stir up a few Short presses.
Now is an important time to read IBD’s Big Picture column amid the ongoing volatility in the stock market.
Five Dow Jones stocks to buy and watch now
Dow stocks to watch: Caterpillar, Home Depot, United Health
Dow Jones member Caterpillar continues to trade near 239.95 buy point in a flat base, According to IBD MarketSmith pattern recognition, following Monday’s slight decline. Stocks found support at the stock’s 21-day exponential moving average and the stock’s RSI is heading to new highs. CAT stock rose on Tuesday.
CAT stock shows a strong 97 out of 99 IBD perfect composite rating, as per an examination of IBD stock.
Home Depot, a home improvement retailer, is about 4% lower than the $329.77 buy point of a mug with a handle after reversing last week’s breakout move. HD shares fell 1.1% Tuesday morning after Credit Suisse downgraded the rating from outperforming to neutral, with a slowing housing market as the main risk.
Healthcare giant UnitedHealth Group is tracking a flat base with 558.20 buy points. The shares are about 6% away from the most recent entry after giving up support near the 50-day line last week. The UN stock is now trying to stop its recent slide around the 200-day line. Shares rose 0.4% early on Tuesday.
4 growth stocks to watch in Cursstock market rally
Top stocks to watch: KLA, Neurocrine, O’Reilly, United Rentals
Chip equipment leader KLA held mostly amid market weakness, about 2% below the 392.60 entry level in the cup with the handle after Monday’s modest loss. KLA shares fell 1% on Tuesday.
IBD Leaderboard’s Neurocrine stock is trying to find support at the 50-day level amid a two-week losing streak. A strong rebound may be bullish for the immediate outlook of the stock and is likely to lead to the formation of a new base. Meanwhile, a sharp breakout could mean that the stock needs more consolidation. NBIX stock rose 0.9% on Tuesday.
O’Reilly Auto Parts is trying to find support at the 50 day line this week and the entry above 750.98 is holding steady. A big bounce off the 50-day line may lead to a follow-up entry point, but the uptrend in the market is under pressure at present, which increases the risk of buying stocks. ORLY shares were up 0.1% on Tuesday.
United Rentals remained below 368.04 buy points in a cup with handle pattern. The shares are about 5% below the buy point, and further weakness would result in a 7%-8% loss base. URI stock rose 0.1% on Tuesday.
Stocks to watch
These are the top five stocks to watch in the stock market today, including three Dow leaders.
|The Company’s name||Code||The right point of purchase||base type|
|Kosovo Liberation Army||(cling on)||392.60||mug with handle|
|United Rentals||(URI)||368.04||mug with handle|
|Home Depot||(HD)||329.77||mug with handle|
|United Health||(United nations)||558.20||Flat base|
Source: IBD data as of December 19, 2022
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Tesla stock fell 2.9% on Monday before cutting losses to just 0.2%. Shares fell more than 3% Tuesday morning, as the stock saw its price target cut at Daiwa, Evercore ISI and Mizuho. TSLA stock hit a 52-week low of 144.17.
Daiwa lowered her target from 240 to 177, in part due to “distraction on Twitter”. Evercore lowered its target from 300 to 200, citing weak demand. And Mizuho lowered its target from 330 to 285, due to the challenging global auto market.
On Monday, TSLA stock hit its lowest level since November 2020. Shares closed about 63% off their 52-week high.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones shares, Apple shares sold 1.6% Monday, hitting their lowest level since mid-June. AAPL stock ended at a 52-week low, set on June 16, at 129.04. The stock is down about 27% from its 52-week high. Shares fell 1.4% on Tuesday.
Microsoft stock fell 1.7% on Monday, as shares looked to find support around the 50-day line amid a three-day losing streak. The software giant is still about 30% off its 52-week high. MSFT shares fell 0.1% early on Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @employee Learn more about developing stocks and the Dow Jones Industrial Average.
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