The Dow Jones Industrial Average briefly jumped 380 points Tuesday, as Home Depot and Walmart reported results ahead of Tuesday’s market open. Twitter stock dropped after Elon Musk’s latest comments cast doubts on his $44 billion planned takeover. And Fed Chair Jerome Powell is scheduled to speak at The Wall Street Journal’s Future of Everything Festival later today.
Dow Jones stocks Home Depot (HD) and Walmart (WMT) — along with JD.com (JD), On Holding (ONON) and Sea (SE) — are among the companies reporting Tuesday morning. Home Depot rallied 3%. Walmart dived 9% as inflation pressure caught management off guard.
Meanwhile, internet retailer JD.com surged more than 8% on the heels of a tech-stock rally in Hong Kong. ONON stock jumped 13%. And Sea surged 14% in early morning trade. Citigroup (C) rallied 5% after Warren Buffett’s Berkshire Hathaway (BRKB) reported buying $3 billion worth of the stock in the first quarter.
Electric-vehicle giant Tesla (TSLA) traded up around 3% Tuesday morning. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) rallied 2% and 1.8%, respectively, in today’s stock market.
As the stock market searches for a potential bottom, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Aspen Technology (AZPN), Cheniere Energy (LNG), Eli Lilly (LLY) and Exxon Mobil (XOM) — are among IBD’s top stocks to watch for Tuesday.
Dow Jones Today: Treasury Yields, Oil Prices, Retail Sales
After Tuesday’s open, the Dow Jones Industrial Average moved up 0.8%, and the S&P 500 rose 1.2%. The tech-heavy Nasdaq composite jumped 1.8% in morning trade.
The 10-year Treasury yield bounced to 2.95% Tuesday morning after closing Monday at 2.87%. The 10-year Treasury yield is in the midst of a pullback since trading as high as 3.16% last week. Meanwhile, U.S. oil prices inched higher, with West Texas Intermediate crude trading above $114 a barrel. The price of WTI crude is at its highest point since late March.
U.S. retail sales topped economist estimates Tuesday morning. April sales grew 0.9%, beating Econoday forecasts for a 0.8% rise.
Stock Market Rally Attempt
The major stock indexes posted mixed action Monday. The Dow Jones industrials rose, but the Nasdaq and S&P 500 finished with moderate losses.
On a technical basis, Monday was Day 3 of a rally attempt, which means a follow-through day can occur as soon as Tuesday. At this point, investors should keep watchlists primed with leading stocks forming actionable chart patterns. To help pinpoint stock leaders emerging ahead of a new market uptrend, use the relative strength line to see which stocks are outperforming the general market.
Monday’s The Big Picture column commented, “The S&P 500 teased investors with afternoon gains, but a late slide repeated a frustrating theme for the stock market: You can expect any big rally to fizzle pretty fast.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Dow Jones Earnings: Home Depot, Walmart
Home Depot jumped more than 3% after reporting strong first-quarter results Tuesday morning. The company also raised its full-year outlook.
Walmart dived 9% Tuesday morning after reporting weaker-than-expected first-quarter earnings. The company also slashed its earnings outlook.
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. CVX shares traded up 0.6% Tuesday, placing them right at their latest buy point.
Merck, a Dow Jones and drug industry leader, is in buy range above a cup-with-handle’s 89.58 buy point, as shares rallied more than 2% Monday, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 94.06. MRK shares inched higher Tuesday morning.
Positively, the stock’s relative strength line is at new highs, indicating big stock market outperformance during the current stock market correction.
Stocks To Watch: Aspen, Cheniere, Exxon, Eli Lilly
IBD 50 stock Aspen Technology is trading just below a saucer-with-handle’s 168.99 buy point in the wake of a May 4 breakout. Last week, the stock fell as much as 7.1% below the entry before rebounding and finding support at the 50-day line. Meanwhile, another handle entry at 170.26 is also in play. Shares soared 10% Tuesday morning.
Cheniere Energy is one of the top stocks to watch, even as it struggles to retake its 50-day line. Shares are etching a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG stock was up 1.6% Tuesday.
Pharmaceutical giant Eli Lilly jumped nearly 3% Monday after the company announced the Food and Drug Administration approved Mounjaro, a new injection for type 2 diabetes. Shares of the IBD Leaderboard stock are rebounding from their 50-day moving average line and are approaching a flat base’s 314.10 buy point. Eli Lilly shares gained 0.2% Tuesday.
Tesla stock skidded nearly 6% Monday, giving up the entirety of Friday’s 5.7% surge. Shares looked to reverse from those losses Tuesday morning, rallying around 3%. Shares are sharply below their 50- and 200-day moving averages.
The stock traded as high as 1,243.49 on Nov. 4 and is more than 40% away from that all-time high amid a recent losing streak.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 1.1% Monday. The stock is falling further below its long-term 200-day line. Apple shares moved up 2% Tuesday.
Software leader Microsoft rose 0.15% Monday, but remains sharply below its 50- and 200-day lines. The stock closed around 25% off its 52-week high. Microsoft stock moved up 1.8% Tuesday.
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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