Dow Jones tumbles as Tesla slips on slower second quarter deliveries

Dow Jones tumbles as Tesla slips on slower second-quarter deliveries

The Dow Jones Industrial Average fell 600 points on Tuesday morning, signaling a weak start to the holiday-shortened week. Tesla stock slipped after the company reported weaker-than-expected second-quarter deliveries.


Chip equipment manufacturer based in the Netherlands ASML Holding (ASML) fell sharply as chip stocks continued to falter Micron technology‘s (MU) weak earnings report on Friday.

Tesla (TSLA) was trading down 3% early Tuesday. Meanwhile, Chinese electric vehicle giant BYD (BYDDF) reported strong sales in June, but the stock was still down 2%. Elsewhere, the technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) were both significantly lower after the market open today.

In a volatile stock market environment, Dow Jones is the leader Johnson&Johnson (JNJ), note (MRK) and UnitedHealth (UNH), as well AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilli (LLY) and Quanta Services (PWR), are among the stocks to watch out for. Keep in mind that continued volatility in stock markets is one reason to stay defensive.

UnitedHealth is an IBD Leaderboard stock. Bristol was the IBD stock of the day on June 22nd. AutoZone was featured in the “Stocks Near a Buy Zone” column last week.

Dow Jones Today: Treasury Yields, Oil Prices

After Tuesday’s open, the Dow Jones Industrial Average lost 1.9% while the S&P 500 fell 1.95%. The tech-heavy Nasdaq Composite fell 1.6%. Keep in mind that overnight action in Dow futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 1.4%. The SPDR S&P 500 ETF (SPY) lost 1.6% in early trade.

The 10-year Treasury yield fell to 2.81% on Tuesday after falling to 2.88% last week, taking the 10-year Treasury yield below 3% for the first time since June 7. 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 around $103.50 a barrel. In early March, WTI briefly peaked above $130.

stock market volatility

The stock market saw solid action on Friday as major stock indexes posted modest gains. The Nasdaq rose 0.9% on Friday, marginally trailing gains of nearly 1.1% by the Dow Jones Industrial Average and the S&P 500.

Friday’s The Big Picture column commented, “After posting one of its worst first-half performances in decades, the stock market got off to a better start into the second half of 2022.”

If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks you should be watching right now

Eyes on Dow Jones stocks: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson is about 1% below the buy point of a double bottom basis of 181.84 after Friday’s gain of 1.1%, according to chart analysis by IBD MarketSmith. JNJ shares fell 0.3% on Tuesday morning.

JNJ stock shows 94 out of 99 perfect IBD Composite Ratings according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Drugs giant Merck rallied on Friday but remains about 2% below the buy point of its 95.02 flat base. The stock was up 0.5% early Tuesday.

Health care giant and IBD leaderboard stock UnitedHealth is range bound behind a double bottomed buy point of 507.36. Shares fell nearly 2% Tuesday morning.

4 Top Growth Stocks to Watchrightde Stock market rally

Top stocks to watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone shares continued to move above their cup-with-henkel buy point of 2,130.60 on Friday amid a 0.5% gain. Shares fell 1% on Tuesday.

Bristol Myers closed about 2% below the buy point of a flat base of 78.72 after shedding 0.2% on Friday. Stocks are now attempting to find support around their key 50-day moving average. Bristol Myers shares fell 0.6% on Tuesday.

Eli Lilly was up 0.15% on Friday, extending a winning streak to three sessions. The shares are in the 5% buy zone rising to 329.81. Eli Lilly shares fell 0.4% early Tuesday.

Quanta Services is tracking a messy mug with a handle, which has a buy point of 138.56, according to IBD MarketSmith chart analysis. Last week, stocks found strong support around their 50-day moving average, which is an important level to watch. Quanta stock fell more than 2% Tuesday morning.

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live

Tesla stock

Tesla shares rose 1.2% on Friday, on a four-day losing streak. Shares threatened to give up those gains Tuesday morning, falling 3%.

Over the weekend, Tesla said it had delivered 254,695 vehicles in the second quarter, below estimates for 264,000. Covid lockdowns and restrictions significantly reduced Shanghai factory production for much of the quarter. Chief Executive Elon Musk has also cited supply chain issues to limit production elsewhere.

The stock is well below its 50-day and 200-day moving averages. Tesla shares traded as low as 1,243.49 on Nov. 4. Shares are about 45% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.6% on Friday and are well below their 200-day long-term moving average. The stock is down about 24% from its 52-week high. Apple shares fell 1.3% Tuesday morning.

Software leader Microsoft climbed 1.1% on Friday as it appears to be recovering after finding strong resistance around its key 50-day moving average last week. The stock closed about 26% below its 52-week high. Microsoft shares fell 1.7% early Tuesday.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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