The Dow Jones Industrial Average fell Tuesday, following a tough session on Monday. China-based stocks Alibaba (BABA), JD.com (JD) and Pinduoduo (PDD) rallied sharply, as China Covid-19 concerns eased.
Tuesday’s modest dose of economic news includes the Case-Shiller Home Price index for September and November consumer confidence numbers from the Conference Board at 10 a.m. The Case-Shiller Home Price index dropped 1.24% in September vs. the previous month.
Looking forward to the remainder of the week, the ADP National Employment Report and preliminary third-quarter GDP estimates from the Commerce Department are due out Wednesday. Weekly jobless claims and inflation data are Thursday, while the Labor Department’s November jobs report is Friday.
Lastly, Fed Chair Jerome Powell will speak at the Brookings Institution on Wednesday.
Hibbett (HIBB) reported earnings ahead of Tuesday’s open. HIBB shares tumbled more than 12% in morning trade.
Earnings reports later this week include CrowdStrike (CRWD), Dollar General (DG) and Intuit (INTU). Also included is Dow Jones stock Salesforce (CRM), along with Snowflake (SNOW), Ulta Beauty (ULTA) and Workday (WDAY).
China stocks strongly outperformed early Tuesday, as Chinese health officials moved to ease concerns over Covid-19 lockdowns and policy. Alibaba jumped 6% and JD.com rose 8%. Pinduoduo added 4.3% to Monday’s breakout move.
Darden Restaurants (DRI) and Roku (ROKU) both saw analyst downgrades early Tuesday, sending their respective shares lower. DRI stock dropped more than 1%, while Roku shares declined 4.5%. On the upside, United Parcel Service (UPS) rose 2% after Deutsche Bank upgraded the stock to a buy rating.
Electric-vehicle giant Tesla (TSLA) traded down 0.5% Tuesday morning. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were modestly lower after today’s stock market open. Tesla and Apple both have strong exposure to circumstances in China.
IPO Leader Array Technologies, IBD Leaderboard stock Arista Networks (ANET), Celsius (CELH) and Chubb (CB) — as well as Dow Jones names Boeing (BA), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Boeing is an IBD SwingTrader stock and was one of the four leaders featured in this week’s Stocks Near A Buy Zone column. Celsius was Monday’s IBD 50 Stocks To Watch pick.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday’s opening bell, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite moved down 0.15% in morning action, with China names propping the index in early action.
The 10-year Treasury yield ticked higher to 3.75% Tuesday morning, holding near recent lows. Last week, the 10-year Treasury yield closed at 3.69%, its lowest close since Oct. 4. Meanwhile, U.S. oil prices rebounded 2% after touching their lowest level since December 2021 on Monday. West Texas Intermediate futures traded just below $79 a barrel.
Stock Market Rally
On Monday, the stock market posted sharp losses, as the tech-heavy Nasdaq composite sold off 1.6%. The Dow Jones Industrial Average declined 1.45%, and the S&P 500 lost 1.5%.
Monday’s The Big Picture commented, “The S&P 500 closed back below the 4,000 level, just three sessions after winning it back. The Nasdaq remained in a sideways range, still above its 50-day moving average. The Dow Jones, for its part, sank back below the 34,000 level.”
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market volatility.
Dow Jones Stocks To Buy And Watch: Boeing, Caterpillar, Chevron
Aerospace giant Boeing dropped 3.7% Monday, falling back under a cup base’s 173.95 buy point. Look for a decisive retake of that entry before considering a purchase of Boeing shares. Boeing shares rose 1% Tuesday.
Energy giant Chevron fell 2.9% Monday, giving up its 182.50 buy point in a consolidation base. CVX shares rose 1.7% Tuesday morning, rebounding along with oil prices.
Top Stocks To Buy And Watch: Array, Arista, Celsius, Chubb
Solar leader and IPO stock Array Technologies gave up its 22.40 buy point in a cup with handle during Monday’s tumble, according to IBD MarketSmith pattern recognition. Shares are about 3% below the entry. Further weakness would trigger the 7%-8% loss-cutting sell rule. ARRY stock gained 0.6% Tuesday morning.
Energy-drink maker Celsius reversed down 1.3% Monday, as the stock continues to form a cup base with a 118.29 buy point. Monday’s weakness could be the start of potential handle that would offer a lower entry. The stock was down 0.6% Tuesday.
Chubb is trading just below a cup-with-handle’s 216.10 buy point Monday after the session’s slight losses. The 5% buy area will top out at 226.91 if shares regain the entry. The insurance giant was down 0.1% Tuesday morning.
Tesla stock inched higher Monday, as the stock continues to rebound from its recent lows. Last week, the stock hit its lowest level since Nov. 23, 2020, reaching a new 52-week low price at 166.19. Tesla shares are around 55% off their 52-week high and sharply below their 50- and 200-day moving average lines.
Shares of the EV giant traded down 0.5% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 2.6% Monday, breaking down below their 50-day support level. Apple iPhone Pro production could fall short by 6 million units due to civil unrest and Covid restrictions in China, according to reports. The stock is more than 20% off its 52-week high.
Apple stock traded down 0.2% Tuesday.
Microsoft skidded 2.3% Monday, falling for a second straight session. Shares continue to hold above the 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares inched lower Tuesday morning.
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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