Dow Jones Falls Below Key Level; Tesla Eyes Big Lithium, Graphite plays after lithium stock crash

Major indexes closed at session lows on Tuesday. The Dow Jones Industrial Average was down just over 2% at 4 p.m. ET, falling below its 50-day moving average while the Nasdaq, which has outperformed so far this year, traded in down 2.5% at the close.


The S&P 500 fell 2% and lost support at 4100. The yield on the 10-year Treasury jumped above resistance at 3.90%, a sign of mounting pressure on stocks.

According to Adam Turnquist, chief technical strategist at LPL Financial, the uptrend in the S&P 500 since October lows has remained intact. “A close below 3,940 would be needed to break the uptrend and the market’s longer-term 200-day moving average.” The 10-year Treasury yield broke through key resistance at 3.90%, increasing upside risk for yields and downside risk for equities.

Volume on the NYSE was higher and lower on the Nasdaq compared to Friday’s closing time.

The small-cap Russell 2000 saw the biggest drop, trading down 2.7% at 4 p.m.

Overview of the US stock market today

Hint Symbol Price loss of profit % Change
Dow Jones (0USD) 33129.59 -697.10 -2.06
S&P500 (0S&P5) 3997.34 -81.75 -2.00
Nasdaq (0NDQC ) 11492.30 -294.97 -2.50
Russell 2000 (IWM) 187.48 -5.65 -2.93
INN 50 (FFTY) 22.78 -0.52 -2.23
Last Updated: 4:00 p.m. ET on 02/21/2023

Crude oil slipped a fraction and sold at $76.14 a barrel.

The yield on the benchmark 10-year Treasury jumped 12 basis points to 3.95%.

The S&P Global Flash US Composite PMI hit 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 fell slightly in January and were well below levels of a year ago. 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 Profits

Dow Jones component Home deposit (HD) fell 7% on Tuesday after the results. The home improvement giant earned $3.30 a share on revenue of $35.83 billion. Stocks nosedived, undercutting the base and the 200-day line.

Leader of the Dow Jones walmart (WMT) rose nearly 0.5% on Tuesday, according to chart analysis from MarketSmith. A weaker outlook after strong earnings of $1.72 per share and revenue of $164 billion weighed on the stock, reducing losses in high-volume intraday trading. It builds support for its 50-day line.

Stocks move today

Shares of Share (CPRT) rose nearly 1% after earnings. The stock is approaching a buy point of 71.03 in a cup-with-handle base.

You’re here (TSLA) has signed an agreement to buy Magnis Energy Technologies to obtain the graphite it needs for its batteries.

Graphite is used in the anodes of lithium-ion batteries. Magnis will enter into a three-year agreement to supply graphite to Tesla starting in February 2025. The electric vehicle giant also plans to buy a lithium company Sigma-Lithium (SGML), according to reports. The deal will value SGML at $3 billion. Tesla manufactures its own batteries and has a lithium processing plant in Texas. Sigma’s raw lithium will likely reduce costs for the EV maker.

Shares of Sigma fell along with other lithium games last week, but rose more than 15% after news of a possible takeover. Tesla shares fell 5% after an impressive run this year.

Earnings are due for Palo Alto Networks (PANW) after market close on Tuesday, with Nvidia (NVDA) is expected to report on Wednesday.

IBD Ranking Stock wing stop (WING) also reports Wednesday. WING shares are approaching a buy point of 169.04 in a handle cup basis. PANW tests its 200-day line. NVDA fell more than 3% at the closing bell on Tuesday.

Dow Jones leaders to watch: Selling power (CRM) in a cup base with handle with a 178.94 entry and disney (DIS), with a 118.28 inlet in a cup base with handle. Both stocks are testing their 200-day line.

Please follow Ramakrishnan Twitter for more stock market news today.


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