The Dow Jones Industrial Average fell 0.2% in early afternoon trading on Monday as big retail plays line up for earnings. Dow Jones retailers Walmart and Home Depot report this week, along with big box giant Target.
On Tuesday, Tesla will hold its annual shareholders' meeting. Shareholders will vote on five proposals, including one to nominate J.B. Straubel to the board. Seen as a co-founder, Straubel worked on Tesla's battery technology in 2004.
According to reports, shareholders will also look at Tesla's "key person risk" from the company's reliance on CEO Elon Musk. TSLA stock fell 0.2%.
On Tuesday, House Speaker Kevin McCarthy will meet President Joe Biden for further talks on the debt ceiling. Over the weekend, Treasury Secretary Janet Yellen spoke of "some areas of agreement" that could bring the discussions to a resolution.
The S&P 500 traded flat, off the day's highs at 1:30 p.m. ET. The Nasdaq rose 0.4%. Volume on the NYSE and the Nasdaq fell compared to the same time on Friday.
Crude oil gained nearly 2% to trade at $71.34 per barrel. The yield on the benchmark 10-year Treasury note rose 4 basis points to 3.5%.
The small-cap Russell 2000 gained 1.2%. The Innovator IBD 50 rose 0.5%.
Retail Week On Deck
Big retail earnings loom. Footwear stock and IBD Leaderboard play On Holding and Dow Jones component Home Depot are due on Tuesday.
On Wednesday, Target and IBD SwingTrader stock Dynatrace will report, along with networking giant Cisco. DT is in a cup base with a buy point at 48.10 ahead of earnings.
Alibaba, Walmart, and Applied Materials report on Thursday, along with Ross Stores. AMAT is clearing the 50-day line within a flat base with a buy point of 125.72. ROST tested the 50-day line in afternoon trading on Monday.
Software stock Take-Two Interactive is due Wednesday as shares approach a buy point of 137.53.
Dow Jones retail leader Walmart is in a buy range from 148.44 in a double-bottom base, according to IBD MarketSmith chart analysis.
Foot Locker wraps up the week's earnings on Friday.
The Empire State Manufacturing Index fell 42.6 points to negative 31.8. This signals economic contraction. Retail sales in April are on watch Tuesday after March's 1% decline.
Stocks Moving Today Outside Dow Jones
Sarepta Therapeutics surged over 20%, soaring past its 50-day line in strong volume after the RNA-based-drug maker got FDA approval for its Duchenne muscular dystrophy treatment.
Heico broke out of a flat base with a buy point of 177.65. The aircraft parts maker will acquire Wencor Group in a stock and cash deal. Wencor makes FAA approved replacement parts for commercial and military aircrafts.
Microsoft rose slightly after the European Union cleared a roadblock for buying Activision Blizzard. The EU stated that the Dow Jones tech leader had offered remedies to allay antitrust concerns in cloud gaming. ATVI rose in a four-day winning streak. Shares plunged below the 50-day line earlier and are still below the key level.
Magellan Midstream Partners surged over 10% on news that Oneok will buy the Tulsa, Okla., company for $18.8 billion. Oneok fell and undercut its base.
Among gold stocks, Newmont is in talks to buy Australia's Newcrest Mining for $17.5 billion. NEM stock rose and is building support at the 200-day line. Newmont trades on the Australian Stock Exchange.
Shares of C3.ai soared 20% after the artificial intelligence software company raised its revenue outlook for the fourth quarter. The stock cleared its 50-day line at noon.
Monday rose over 10% in strong volume and rebounded from its 50-day line after earnings.
Analyst Upgrades
Shares of Schwab rose after an upgrade to outperform from market perform by Raymond James analyst Patrick O'Shaughnessy.
Lithium play Albemarle got an upgrade to buy from hold from Baird analyst Ben Kallo with a new price target of 288, up from 222. Sociedad Quimica rose in sympathy and is on watch with earnings due on Thursday.
IBD Leaderboard stock and Facebook parent Meta Platforms rose after an upgrade from Loop Capital to buy from hold. META stock rose 1.4% in the first hour.
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