The Dow Jones Industrial Average rose from session lows after pulling back from Monday's record highs. On Monday, the index cleared 38,000 for the first time but it traded as much as 0.4% lower in afternoon trades Tuesday.
The S&P 500 continued to trade sideways and was unchanged in the stock market today, while the Nasdaq regained early wins and was up 0.1%.
Volume on the NYSE and on the Nasdaq was lower compared with the same time on Monday. Breadth continued to be poor as decliners beat advancers by a slight margin on both main exchanges.
The small-cap Russell 2000 reversed sharply. It gained over 0.5% early and then fell 0.6% in the afternoon.
The Innovator IBD 50 ETF also pulled back and traded 0.5% lower.
The yield on the benchmark 10-year Treasury note jumped 5 basis points to 4.15%.
Homebuilding Stocks Under Pressure
Homebuilder D.R. Horton broke a three-day winning streak as the stock dived more than 9% after earnings missed expectations. Sales growth tapered 6%, to $7.7 billion, while earnings per share of $2.82 were 2% higher than the prior year's quarter.
Other homebuilders fell in sympathy, rattling one of the market's leading groups.
M/I Homes, Lennar, Toll Brothers and PulteGroup are among many builders down sharply after three-day winning streaks.
Dream Finders Homes is back near its 31.60 buy point, facing a likely round-trip sell signal.
The iShares U.S. Home Construction ETF, which broke out above a trendline around 103 Monday, fell 5%. IBD's homebuilding industry group, ranked N0. 15 out of 197, fell nearly 5% as well.
Dow Jones Stocks
Verizon gapped up and held the bulk of its gains in the afternoon after its fourth-quarter report. Sales of $35.1 billion were nearly unchanged from $35.3 billion in the prior year's quarter, while earnings per share came in at $1.08 vs. $1.19 in the year-ago period. Wireless subscription growth beat views. Shares have soared past a buy range from a 38.88 entry in a cup with handle.
Also in the Dow, 3M reported fourth-quarter sales of $8 billion with earnings per share of $2.42. Shares dived in strong volume and are below the 50-day moving average and the 200-day line, too.
Procter & Gamble rebounded back above the 50-day and 200-day lines after announcing earnings. Shares are approaching a buy point of 158.38 in a flat base.
Stocks Moving Today
Among other earnings movers, United Airlines has retaken the 50-day moving average in strong volume after the airline released fourth-quarter earnings.
Netflix will report after the market close. Just ahead of earnings, the streaming giant made a $5 billion push into livestream wrestling. NFLX stock is holding up above a buy point of 485.
Tesla's fourth-quarter and full-year report is due Wednesday, also after the market close. Shares reversed and fell 0.2% Tuesday afternoon and remain below the 50-day line. Analysts expect earnings to fall 39% to 73 cents per share with sales of $25.62 billion. For the full year, analysts are more pessimistic and believe earnings fell 25% to $3.05 per share while sales of $97.46 billion rose 20%.
Among other EV stocks, Fisker added to Monday's hefty gains, up 2.9% to 0.90. According to the company, more than 100 dealers have expressed interest in becoming a Fisker Dealer Partner.
In aerospace, Lockheed Martin fell to its 50-day line after the aerospace giant announced earnings. Sales of $18.9 billion showed flat growth, while $7.90 EPS decelerated to 1%.
Outside Dow Jones: Two Stocks Break Out
Truck maker Paccar is breaking out of a flat base at 98.47. PCAR is the biggest gainer in the Nasdaq on Tuesday. The buy zone goes to 103.39.
AppLovin is trying to break out past a buy point of 44.57 from a cup-with-handle base, although the handle was deeper than normal.
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