Dow Jones falls below key level; Tesla Sees Big Lithium, Graphite Plays After Lithium Stock Crash

Major indices rose from session lows in Tuesday afternoon trade. The Dow Jones Industrial Average slipped over 1.5% and fell below its 50-day moving average, while the Nasdaq, which has outperformed so far this year, lagged and traded 2% lower.

X

The S&P 500 is also down 1.5%, although its 50-day moving average remains above its 200-day moving average… a bullish indicator.

Volume on the NYSE was significantly higher compared to the same time on Friday and slightly higher on the Nasdaq.

Small-cap Russell 2000 saw the sharpest decline, trading 2.5% lower.

Crude Oil slipped a fraction, selling at $76.48 a barrel.

The yield on the benchmark 10-year government bond rose 9 basis points to 3.92%.

The S&P Global Flash US Composite PMI rose to an eight-month high for services and fell at a slower pace for manufacturing in February compared to January. The data supports growing optimism that the economy will experience a soft landing in 2023.

Existing home sales declined slightly in January and are well below last year’s level. According to Comerica chief economist Bill Adams, “2023 will likely be the slowest year for total home sales — existing and new — in about a decade.”

Dow Jones Leaders Profit

Dow Jones Component home depot (HD) fell on Tuesday after the result. The home improvement giant posted earnings of $3.30 per share on sales of $35.83 billion. Stocks tumbled, undercutting the base and the 200-day moving average.

Dow Jones Leader Walmart (WMT) rose slightly in afternoon trade MarketSmith chart analysis. A lowered outlook after strong earnings of $1.72 per share on sales of $164 billion put pressure on the stock, which greatly mitigated losses in intraday trading. It is building support at its 50-day moving average.

Stocks move today

shares of copart (CPRT) are up over 1% after earnings. The stock is approaching a buy point of 71.03 on a cup and handle basis.

Tesla (TSLA) signed a deal to purchase Magnis Energy Technologies for the graphite needed for its batteries. Graphite is used in anodes of lithium-ion batteries. The EV giant also has plans to buy the lithium company Sigma Lithium (SGML), According to reports.

Sigma shares fell along with other lithium stocks last week but rose over 15% on news of the potential acquisition. Tesla shares are down 3% this year after an impressive run.

The merit is due Palo Alto Networks (PANW) after market close Tuesday, wed NVIDIA (NVDA) is scheduled to report on Wednesday,

IBD Leaderboard share wing stop (WING) also reported on Wednesday. WING shares are approaching a buy point of 169.04 on a cup and handle basis. PANW tests its 200-day moving average. NVDA fell over 2% in Tuesday afternoon trade.

Dow Jones leaders to watch: Foreclosure (CRM) in a cup-and-handle base with a 178.94 entry and Disney (DIS), with a 118.28 entry in a cup-and-handle basis.

Please follow VRamakrishnan on Twitter for more news on the stock market today.

YOU MAY ALSO LIKE:

What is CAN SLIM? If you want to find successful stocks, you should know better

IBD Live: Learn and analyze growth stocks with the pros

Looking for the next big stock market winners? Get started with these 3 steps

Want more IBD insights? Subscribe to our investment podcast

Market shrugs on hot inflation data; Two travel stocks fly late