The Dow Jones industrial average fell sharply on Tuesday as government bond yields fell from Monday’s gains. Trade giant Target (TGT) sank more than 9% after warning that profits would fall and announced plans to quickly unload surplus stocks. The news from Target spread the shares retail, taking the strongest early blows on the S&P 500, Nasdaq 100 and Dow Jones Industrial Average.
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Major stakeholders include Academy Sports & Outdoors (ASO), Dave & Buster’s (PLAY) and G-III Apparel (GIII). The academy jumped 6%. Dave & Buster’s jumped more than 7%, while shares of G-III fell more than 1% earlier.
The electric vehicle giant Tesla (TSLA) traded down 2% on Tuesday. Elsewhere, technology leaders Dow Jones Apple (AAPL) and Microsoft (MSFT) were downright in today’s stock market. Walmart (WMT) and Home Depot (HD) led to the early Dow downturns.
Amid the ongoing stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) – along with Albemarle (ALB), Eli Lilly (LLY), Northrop Grumman (NOC), Vertex Pharmaceuticals (VRTX) and Zim Integrated Shipping (ZIM) – are among the best shares of IBD to watch for Tuesday.
Albemarle is a stock of IBD Leaderboard. Vertex was introduced in the stock column near the buying area this week. Zim was introduced as the leader of the IPO.
Dow Jones today: government bond yields, oil prices
After opening on Tuesday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 fell 0.5%. The Nasdaq technology composite reduced losses by 0.5%.
Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) fell 0.5%, while the SPDR S&P 500 ETF (SPY) lost 0.5% at the start of trading.
Yields on 10-year bonds threaten to return some of the gains on Monday, falling to 3.03% on Tuesday morning. US oil prices, meanwhile, were slightly lower, but held well within their recent range, with West Texas Intermediate just above $ 118 a barrel.
Finance Minister Janet Yellen will appear before the Senate Finance Committee on Tuesday and before the House of Representatives Committee on Ways and Means on Wednesday.
Stock market rally
The main stock indexes reported a slight positive effect on Monday, while the rally on the stock market continued.
The Big Picture column on Monday commented: “The fall on Friday cost Nasdaq profits 2.5% and the S&P 500 1.6%. Then came Monday’s vanishing profits. The preliminary conclusion is that a quick recovery needs a break. With only one day of distribution so far in the main indices, investors can still afford some exposure to stocks. “
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch now
Dow Jones monitoring shares: Chevron, Merck
Dow Jones leader and energy giant Chevron traded just over 174.86 points to buy flat, according to an analysis of IBD MarketSmith’s chart, after losing 0.4% on Monday. The 5% buying area reaches 183.60. Shares of CVX traded slightly higher on Tuesday.
The availability of the CVX boasts 98 of the perfect 99 IBD Composite Rating, according to an IBD Stock check. Investors can use the IBD Composite Rating to easily assess the quality of the main and technical indicators of the shares.
Merck, shares of Dow Jones and IBD Big Cap 20 are still in the buying range above the point of buying a glass with a handle of 89.58 despite a five-day series of losses as shares fell 0.1% on Monday. The buying area of 5% increases to 94.06. Shares of MRK rose 0.5% on Tuesday morning.
The line of relative strength of the shares reached a new peak in mid-May, but is now retreating sharply.
Five stocks with the highest growth to watch in the current stock market rally
Shares to buy and watch: Albemarle, Eli Lilly, Northrop, Vertex, Zim
Shares of IBD Leaderboard Albemarle are about 8% off a glass with a handle buying point of 273.78, according to an analysis of the IBD MarketSmith chart. In recent weeks, Albemarle has crossed an early buying point near 248. Shares of ALB fell 1% on Tuesday morning.
Pharmaceutical giant Eli Lilly rose 0.6 percent on Monday after the company unveiled a promising update on its experimental treatment for obesity. Shares of Lilly traded just below the buy point on a flat base of 314.10 after a break on May 27. Shares of LLY fell on Tuesday.
Northrop Grumman exploded last week over the point of buying a glass with a handle of 477.36 and moved even above the entrance on Monday. The defense contractor is also moving above the trend line within its handle, which had an early entry around 464. NOC shares were slightly lower on Tuesday morning.
Vertex Pharmaceuticals tracks a cup with a handle with a buying point 276.10. For now, the shares see some support around their 50-day line. A strong rebound from this area is likely to lead to a breakthrough. Conversely, abruptly breaking the 50-day line would mean that the basing process takes longer. Shares of Vertex fell 0.6% on Tuesday.
IPO leader Zim Integrated is tracking a cup with a handle that has 68.80 points to buy. The shares are about 1% off the right buying point after falling 0.7% on Monday. Shares of ZIM lost more than 1% early on Tuesday.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market rally
Tesla shares
Shares of Tesla rose 1.6% on Monday, recovering a small share of Friday’s 9.2% decline. Shares threatened to wipe out this week’s early gains, falling 2% on Tuesday morning.
Shares are still falling below their 50- and 200-day moving averages. Shares of Tesla traded up at 1243.49 on November 4. Shares are about 43% lower than this record high.
Leaders of Dow Jones: Apple, Microsoft
Among the shares of Dow Jones, Apple shares rose 0.5% on Monday. The shares remain well below their long-term 200-day line. Shares of AAPL fell 1.1% on Tuesday.
The company’s WWDC event kicks off on Monday. Apple is announcing features of its next smartphone operating system that will power upcoming iPhone 14s and older compatible phones. It also showed a second generation Mac processor for two new laptops.
Software leader Microsoft fell 0.5 percent on Monday to stay sharply below its 50- and 200-day lines. Shares closed more than 20% of their 52-week high. Shares of MSFT fell 0.9% on Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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