Dow Jones plunges 300 points ahead of economic data; Home Depot and Walmart drop in profits

The Dow Jones Industrial Average fell more than 300 points Tuesday morning ahead of economic data for a holiday-shortened week. Meanwhile, retail giants Home deposit (HD) and walmart (WMT) released quarterly results. Home Depot shares fell 3.6% and Walmart shares fell 2.4%.


Of the other companies reporting profits, Fluorine (FLR), Harmony Biosciences (HRMY) and Hunter (HUN) were on the move.

Shares of Fluor fell 1.5% at the market open, while shares of Harmony rose nearly 1%. Additionally, shares of Huntsman fell 3.2%.

On the economic front, February’s preliminary estimate of the Composite Purchasing Managers’ Index, or PMI, is due from researcher Markit at 9:45 a.m. ET. The manufacturing and services indices are expected to remain in contraction, with the manufacturing index at 47.3 and the services index at 47.2.

Meanwhile, the number of existing home sales from the National Association of Realtors is expected to rise slightly, from 4.02 million in December to 4.1 million in January. These data are due for release at 10 a.m. ET

stock market today

Electric vehicle leader Tesla fell nearly 2% on Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were down sharply after the stock market opened today.

IBD Ranking Stock Airbnb (ABNB) Dexcom (DXCM), Inspires medical systems (INSP) and wing stop (WING) – as well as Dow Jones stocks caterpillar (CAT), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy and watch, amid the recent stock market rally.

Airbnb is an IBD ranking stock. Inspire and Dexcom were recent Stock Of The Day IBD topics. Salesforce was featured in last week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Price, Treasury Yields

After Tuesday’s market open, the Dow Jones Industrial Average fell 0.9%, with Home Depot and Walmart doing most of the damage. The S&P 500 fell 0.95%. And the tech-heavy Nasdaq composite fell 1.3% in morning action as (JD) and DP Funds (PDD) led a sell-off among e-commerce stocks in China.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1.3% and the SPDR S&P 500 ETF (SPY) fell 1% early Tuesday.

The yield on 10-year U.S. Treasuries fell to 3.82% on Friday, ending a three-day winning streak but still closing with strong weekly gains. Then on Tuesday morning, the 10-year yield jumped to 3.9% as bonds fell, even as a surge in safe-haven stocks sent the US dollar higher against major foreign currencies.

Oil prices battled to end a four-day losing streak, rising less than 1% on Tuesday morning. West Texas Intermediate futures remained below $77 a barrel.

Stock market rally

On Friday, the Dow Jones Industrial Average rose 0.4%, but the S&P 500 lost 0.3%. The Nasdaq fell 0.6%.

Friday’s Big Picture column commented: “The overall picture remains bullish for now, warranting 60%-80% exposure. But remember to stay on top of sell signals within your portfolio. Any stock that drops 7% to 8% since you bought the price should be cut in. Also beware of strong breaks below the 50-day or 10-week moving averages.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Caterpillar, JPMorgan, Salesforce

Top Dow Jones Caterpillar stock is still in the buy range above a fixed base entry of 239.85 as it attempts to find support around its 50-day moving average, according to the report. chart analysis from IBD MarketSmith. Shares climbed 0.5% on Friday and continue to hold above the 50-day line. CAT stock fell 0.8% on Tuesday morning.

Banking giant JPMorgan remains in the 5% buy range above a fixed base buy point of 138.76 after gaining 0.3% on Friday. The 5% buy zone peaks at 145.70. JPM shares fell 0.8% early Tuesday. JPM stock is posting a solid 95 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.

Featured in last week’s Stocks Near A Buy Zone column, Salesforce builds a mug with handle that has a buy point of 178.94. Shares lost 1.75% on Friday, ending around 7% from entry and approaching potential support at the 200-day line. CRM stock was down another 0.8% early Tuesday.

4 best growth stocks to buy and watch in the market Stock market rally

Top stocks to buy and watch: Airbnb, Inspire

Airbnb’s new IBD Leaderboard stock soared last week, surpassing a buy point of 121.50 on a mug with handle. Although extended from this entry, the breakout gap places an alternative entry at 135 – and the stock is just below that price after Friday’s sharp drop. ABNB shares were down 1% on Tuesday morning.

Pass: The company operates an online marketplace for hosting. Its main offerings are homestays for vacation rentals. While tourism has been hit hard by the coronavirus pandemic, it continues to roar after strict closures.

Recent day IBD stock Inspire Medical Systems fell for the second day on Friday, but is still in the 5% buy zone after the buy point of 262.64 on a flat basis, according to the acknowledgment IBD MarketSmith models. The buy zone peaks at 275.77. INSP stock has a modest composite rating of 84 IBD. INSP stock fell 0.9% early Tuesday.

Pass: The company sells an implantable device to treat sleep apnea by electrical nerve stimulation – a process called neurostimulation.

Dexcom, Wingstop Eye Latest Purchase Points

Dexcom shares fell 2.1% on Friday, adding to Thursday’s losses. The stock added a handle to a cup base, creating a buy point of 121.21. The stock was down 1.2% on Tuesday.

Pass: On February 9, Dexcom announced stronger than expected quarterly results. The beat comes as Dexcom’s newest continuous blood glucose monitor, or CGM, gains momentum in the United States and Europe. These body-worn devices keep track of blood sugar levels in real time. The Food and Drug Administration cleared Dexcom’s new device, the G7, last year.

Wingstop is squarely in the buy range above a buy point of 169.04 in a cup with handle following last week’s breakout move. The pursuit zone rises to 177.49. WING stock fell 1.1% on Tuesday, despite a rating from Baird maintaining its rating to outperform and raising its 12-month price target to 190 from 175.

Pass: The Dallas-based restaurant chain has more than 1,900 locations in the United States and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. The company added 40 net stores in the prior quarter. Winnings are due Wednesday.

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Stocks to buy and watch in the stock market rally

These are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.

Company Name Symbol Correct point of purchase Point of purchase type
Inspires medical systems (INSP) 262.64 Flat bottom
Visteon (RESUME) 152.20 cup bottom
caterpillar (CAT) 239.95 Flat bottom
Airbnb (ABNB) 135.00 Breakaway gap
JP Morgan (JMP) 138.76 Flat bottom
wing stop (WING) 169.04 Mug with handle
Source: IBD data as of February 21, 2023

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Tesla Stock

Tesla stock rebounded 3.1% on Friday, recouping much of Thursday’s 5.7% loss. Despite their strong rebound since Jan. 6, stocks are still below the 200-day line and this key level looms as a potential resistance zone. Shares closed Friday about 46% off their 52-week high.

The shares threatened to give up some of Friday’s gains, falling 1.8% on Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.75% on Friday. The shares are about 14% off their 52-week high and are moving up the right side of a new base. Apple stock fell 1.4% on Tuesday.

Microsoft shares extended a losing streak to three sessions, falling 1.6% on Friday. Stocks are still above their 200-day line and about 18% off their 52-week high after recent gains. MSFT stock was down 1.5% on Tuesday morning.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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