The Dow Jones Industrial Average was lower Tuesday ahead of Wednesday’s key inflation report — the Labor Department’s CPI. vaccine manufacturer Novavax (NVAX) plunged 31% after lowering its 2022 sales guidance due to lack of demand for its Covid-19 vaccine.
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American International (AIG) Perrigo (PRGO), planet fitness (PLNT) and Ralph Lauren (RL), shock wave medicine (SWAV) and Take Two Interactive (TTWO) were key companies to report earnings on Tuesday.
AIG shares gained 0.9%, while Perrigo gained more than 2%. Planet Fitness lost nearly 2% while Ralph Lauren gained about 1%. Shockwave was up 8% in early trade. And video game maker Take-Two slipped about 5%.
Chip inventories fell sharply again Tuesday after Monday’s sales warning NVIDIA (NVDA). Nvidia shares fell another 2.6%. modern micro devices (AMD) declined 2.4%. And the VanEck Semiconductor ETF (SMH) was down 2.4% early Tuesday.
Tesla (TSLA) was trading down nearly 2% early Tuesday. Elsewhere, the technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) fell 0.4% and 0.3% respectively after the market open today.
Nike (NKE) saw the Dow’s sharpest decline, down 2.6%, after BNP Paribas downgraded its price target and cut it amid heightened uncertainty in the company’s guidance.
In the strengthening stock market environment, Dow Jones shares are rising Coke (KO) and UnitedHealth (UNH) – as well Monolithic Energy Systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Apex Pharma (VRTX) – are among the top stocks to buy and watch.
UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie’s and Vertex were featured in this week’s “Stocks Near a Buy Zone” column. Monolithic Power was Thursday’s IBD stock of the day. Vertex is also an idea of IBD SwingTrader.
Dow Jones Today: Treasury Yields, Oil Prices, CPI
The Dow Jones Industrial Average fell 0.2% in morning trade. The S&P 500 fell 0.4% and the tech-heavy Nasdaq Composite slipped 1.1%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.1%. And the SPDR S&P 500 ETF (SPY) fell 0.4%.
The 10-year Treasury yield rose to 2.80% on Tuesday morning, rising to 2.76% after Monday’s decline. 10-year government bond yields are rebounding after hitting their lowest level since early April last week.
Meanwhile, US oil prices appeared to be recovering from recent losses as West Texas Intermediate futures rose about 1% on Tuesday to trade above $91 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.
The Labor Department’s Consumer Price Index will be released early Wednesday. Econoday estimates expect consumer prices to rise 0.2% in July, compared to June’s 1.3% increase. Inflation is expected to rise 8.7% yoy in July after rising 9.1% yoy in June.
stock market rally
On Monday, the Nasdaq erased a 1.6% gain to finish 0.1% lower. The S&P 500, which gained as much as 1%, also lost 0.1%. The Dow Jones Industrial Average came away up 0.1%.
Monday’s The Big Picture column commented: “The stock market faded and closed near session lows. The bearish reversal marked a rapid change in character from Friday: July’s surprisingly strong jobs report increased the likelihood of a 75 basis point rate hike in September. Still, the market regained its composure and closed near session highs.”
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.
Five Dow Jones stocks to watch right now
Dow Jones stocks to look at: Coca Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base with a buy point of 67.30. Stocks are testing their 50-day moving average after last week’s losses. KO stock rose 0.2% on Tuesday.
Health insurance giant and IBD leaderboard stock UnitedHealth remains in the buy range above the 518.80 buy point of its double bottom with grip amid Monday’s gain of 0.3%, according to IBD MarketSmith chart analysis. Shares rose 0.65% on Tuesday.
UNH stock shows a solid 94 out of 99 perfect IBD Composite Ratings according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks to Watchrightde Stock market rally
Top stocks to watch: Monolithic, Ollie’s, Vertex
Thursday IBD stock of the day Monolithic Power Systems continues to extend the right side of a consolidation with a buy point of 580.10. Meanwhile, shares are about 3% up from an early entry of 514.80. Keep an eye out for a potential grab to offer another alternative buying point. Shares fell 3.1% on Tuesday.
Ollie’s Bargain Outlet is recovering from its 10-week moving average – a critical support level – and places the top discounter in a new buy zone. Stocks are also carving out a grasp for a major cup base, setting the final buy point at 72.37. The current price action is about 10% away from this entry. Shares edged higher early Tuesday.
Vertex Pharmaceuticals’ IBD SwingTrader stock was up 2.1% on Monday, moving out of the buy range, past a cup with an entry at 279.23. The 5% pursuit zone increases to 293.19. The stock’s June 23 breakout is back on track following last week’s second-quarter earnings results. Vertex stock was up 0.5% Tuesday morning.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla stock pared Monday’s gains to 0.8%, recovering a small portion of Friday’s 6.6% drop. Shares lost 1.9% Tuesday morning.
Last week, Tesla shares hit their highest level since early May but are now facing resistance around their 200-day moving average, which is a key level to watch. On Friday, the company announced that it would hold a 3-for-1 stock split on August 24. The stock is down about 30% from its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.3% on Monday, extending a losing streak to three sessions. The stock builds the right side of a new base. Shares fell 0.4% Tuesday morning.
Microsoft fell 0.9% on Monday, falling for the second straight day. The software giant is still trading below its 200-day long-term moving average. The stock closed about 20% below its 52-week high on Monday and was down 0.3% 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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