Dow Jones plunges 400 points amid economic data; Home Depot, Walmart drop in revenue
The Dow Jones Industrial Average shed more than 400 points on Tuesday morning amid the release of economic data in a holiday-shortened week. Now retail giants home depot (HD) And Walmart (WMT) reported quarterly earnings. Home Depot shares fell 3.6% and Walmart stock fell 2.4%.
Among other companies reporting earnings, fluorine (FLR), Harmony Life Sciences (HRMY) And Hunter (HUN) were on the way.
Fluor shares fell 1.5% on market open, while Harmony shares rose nearly 1%. Additionally, Huntsman shares fell 3.2%.
On the economic front, February’s preliminary composite Purchasing Managers’ Index (PMI) showed that the services index has returned to expansionary territory, while the manufacturing index continues to contract. The services index came in at 50.5, better than the 47.2 estimate, while the manufacturing index came in at 47.8 versus a 47.3 estimate.
Meanwhile, the National Association of Realtors existing home sales are expected to rise slightly to 4.1 million in January, from 4.02 million in December. This data is due at 10am ET
stock market today
Electric vehicle leader Tesla fell nearly 2% Tuesday morning. Dow Jones tech giants Apple (AAPL) And Microsoft (MSFT) were significantly lower after today’s stock market opening.
IBD Leaderboard Stock Airbnb (ABNB) Dexcom (DXCM), Medical systems inspire (INSP) And wing stop (WING) – as well as Dow Jones stocks Caterpillar (CAT), JPMorgan Chase (JPM) And Foreclosure (CRM) – are among the top stocks to buy and watch amid the recent stock market rally.
Airbnb is a IBD Leaderboard Share. Inspire and Dexcom were the most recent IBD Stock Of The Day themes. Salesforce was featured in the Stocks Near A Buy Zone column last week.
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Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday’s market open, the Dow Jones Industrial Average fell 1.2%, with Home Depot and Walmart doing most of the damage. The S&P 500 fell 1%. And the tech-heavy Nasdaq Composite fell 1.2% in morning action JD.com (JD) And PDD holdings (PDD) led to a sell-off in Chinese e-commerce stocks.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded 1.3% lower and the SPDR S&P 500 ETF (SPY) fell 1% early Tuesday.
The US 10-year Treasury yield fell to 3.82% on Friday, breaking a three-day winning streak but still ending with solid weekly gains. The 10-year bond yield then jumped to 3.9% on Tuesday morning as bonds fell, although a surge in safe havens pushed the US dollar higher against major foreign currencies.
Oil prices struggled to end a four-day losing streak, rising less than 1% Tuesday morning. West Texas Intermediate futures remained below $77 a barrel.
stock market rally
On Friday, the Dow Jones Industrial Average was up 0.4%, but the S&P 500 was down 0.3%. The Nasdaq fell 0.6%.
Friday’s Big Picture column commented, “The overall picture remains bullish for now, warranting a 60% to 80% build up in engagement. But remember to keep an eye on sell signals in your portfolio. Any stock that is down 7% to 8% from where you bought it should be priced lower. Also, beware of sharp breaks below the 50-day or 10-week moving averages.”
Five Dow Jones stocks to buy and watch
Dow Jones stocks to buy and watch: Caterpillar, JPMorgan, Salesforce
Top Dow Jones stock Caterpillar is still range bound above a flat base entry of 239.85 as it attempts to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares rose 0.5% on Friday and continue to hold above the 50-day moving average. CAT shares fell 0.8% Tuesday morning.
Banking giant JPMorgan remains in the 5% buy range above a flat base buy point of 138.76 after gaining 0.3% on Friday. The 5% buy zone is at 145.70. JPM shares fell 0.8% early Tuesday. JPM share showing a solid 95 out of 99 perfect IBD Composite Ratings, per IBD inventory check. The Composite Rating is designed to help investors easily find top growth stocks.
In last week’s “Stocks Near a Buy Zone” column, a mug with a handle was built by Salesforce that has a buy point of 178.94. Shares lost 1.75% on Friday, closing about 7% from entry and nearing potential support at the 200-day moving average. CRM stock fell another 0.8% early Tuesday.
4 top growth stocks to buy and watch stock market rally
Top stocks to buy and watch: Airbnb, Inspire
Airbnb’s new IBD leaderboard stock soared last week, rising above a handle cup buy point of 121.50. While starting from that entry, the Breakaway Gap places an alternate entry at 135 — and the stock is just below that price after Friday’s sharp drop. ABNB shares fell 1% Tuesday morning.
Backstory: The company operates an online marketplace for accommodation. The main offer is host families for vacation rentals. While tourism has been hit hard by the coronavirus pandemic, it continues to roar back following strict lockdowns.
IBD’s latest stock of the day Inspire Medical Systems fell for a second day on Friday but is still in the 5% buy zone beyond the buy point of a flat base of 262.64 according to IBD MarketSmith’s pattern recognition. The buy zone is at 275.77. INSP camp shows a modest 84 IBD Composite Rating. INSP stock fell 0.9% early Tuesday.
Backstory: The company sells an implantable device that treats sleep apnea by electrically stimulating nerves — a process called neurostimulation.
Dexcom, Wingstop Eye Latest Buy Points
Dexcom shares fell 2.1% on Friday, adding to Thursday’s losses. The stock added grip to a cup bottom creating a buy point of 121.21. The stock fell 1.2% on Tuesday.
Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom’s newest continuous glucose monitor (CGM) gains momentum in the US and Europe. These body-worn devices track blood glucose in real time. The Food and Drug Administration cleared Dexcom’s new device, the G7, last year.
Wingstop is right in the buy range above a buy point of 169.04 in a cup with a handle after last week’s breakout move. The pursuit zone rises to 177.49. WING shares fell 1.1% on Tuesday, despite an announcement from Baird keeping its rating at Outperform and raising its 12-month price target to 190 from 175.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. International locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. The company added 40 net stores in the previous quarter. Earnings are due on Wednesday.
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Stocks to buy and watch in the stock market rally
These are six top stocks to buy and watch in today’s stock market, including two top Dow Jones stocks.
|Company Name||symbol||Correct purchase point||Type of purchase point|
|Medical systems inspire||(INSP)||262.64||flat base|
|JP Morgan||(JPM)||138.76||flat base|
|wing stop||(WING)||169.04||Cup with handle|
Source: IBD data as of February 21, 2023
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Tesla shares gained 3.1% on Friday, recouping much of Thursday’s 5.7% loss. Despite their strong rebound since January 6th, stocks are still below the 200-day moving average and this key level is looming as a potential area of resistance. Shares closed about 46% below their 52-week high on Friday.
Shares threatened to give up some of Friday’s gains, falling 1.8% on Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares lost 0.75% on Friday. Shares are about 14% off their 52-week high and are moving up on the right side of a new base. Apple shares fell 1.4% on Tuesday.
Microsoft shares extended their losing streak to three sessions, falling 1.6% on Friday. Stocks are still above their 200-day moving average and about 18% below their 52-week high after recent gains. MSFT shares fell 1.5% Tuesday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-slide-ahead-of-economic-data-home-depot-walmart-tumble-on-earnings/?src=A00220&yptr=yahoo Dow Jones plunges 400 points amid economic data; Home Depot, Walmart drop in revenue