The Dow Jones Industrial Average dropped Tuesday morning, as the market looked for a toehold following Monday's stock market plunge. Security software names rallied after a strong quarterly report from Palo Alto Networks. Zoom Video stock toppled nearly 14% in early trade after cutting its earnings and sales outlook for the year.
Dick's Sporting Goods, JD.com, Macy's, Palo Alto Networks and Zoom Video were key earnings movers Tuesday.
DKS shares rose around 3% while JD.com stock rallied more than 2%. Macy's stock moved up 1.9% as Palo Alto shares surged more than 10% on better-than-expected results. Palo Alto's results triggered strong early moves from CrowdStrike, Zscaler and Okta.
Electric-vehicle leader Tesla traded up 0.5% Tuesday morning ahead of Wednesday's stock split. Elsewhere, Dow Jones tech leaders Apple and Microsoft were mixed after today's stock market open.
In the current stock market pullback, Albemarle, Arista Networks, Axcelis Technologies and Costco — as well as Dow Jones stocks Amgen and McDonald's — are among the top stocks to buy and watch.
Costco stock was added to the IBD Leaderboard in the wake of last week's breakout move. Arista and Axcelis were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Powell Speech
Early Tuesday, the Dow Jones Industrial Average lost 0.1%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite rose 0.25% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.25%, and the SPDR S&P 500 ETF inched higher in early trade.
The 10-year Treasury yield ticked lower to 3.01% early Tuesday, following Monday's continued jump. The 10-year Treasury yield is above the 3% level for the first time since July 21.
Oil stocks helped prop the Dow and S&P 500. U.S. oil prices moved higher Tuesday after Saudi Arabia's energy minister said recent market volatility could make OPEC+ lower the amount of oil it produces, according to Bloomberg. Last week's losses saw West Texas Intermediate futures touch their lowest level since January. WTI futures rose 1.7% early Tuesday, trading near $92 a barrel.
Fed chief Jerome Powell will give a speech Friday on the central bank's economic outlook from Jackson Hole, Wyo. The Fed has raised interest rates this year in an attempt to bring down inflation but has sent increasingly mixed signals about coming increases.
Last week's Fed minutes seemed to push back against market expectations for a dovish pivot, after a six-week stock market rally followed the June 14-15 meeting. Markets place a roughly 56% chance of a 75-basis-point rate hike on Sept 21. One week ago, there was a 39% chance.
Stock Market Pullback
On Monday, the stock market finished with heavy losses, as the tech-heavy Nasdaq composite sold off 2.55%.
Monday's The Big Picture column commented, "Sellers came back from the weekend with a big appetite, sending the stock market indexes to a second straight day of sharp losses. After the two-session rout, investors have reason to make some defensive adjustments."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Amgen, McDonald's
Dow Jones biotech stock Amgen is building a flat base that has a 258.55 buy point, amid a strong performance by biotechs so far this year. An early entry at 253.87 is also in play. For now, shares are holding above their 50-day line despite Monday's 1.6% decline. The stock traded slightly lower early Tuesday.
AMGN stock shows a solid 92 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
McDonald's shares are trading just below a 265.56 cup-with-handle entry following Monday's losses, according to IBD MarketSmith chart analysis. MCD shares inched lower Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Albemarle, Arista, Axcelis, Costco
Lithium producer Albemarle is in buy range following Monday's retake of a large cup with handle's 273.78 buy point. The 5% buy zone goes up to 287.47. In previous weeks, shares topped a smaller cup with handle's 250.25 buy point. The stock was up 1% Tuesday morning.
Arista Networks, one of last week's IBD 50 Stocks To Watch picks, continues to plod up the right side of a double-bottom base that offers a 143.67 buy point. With the stock about 11% away from the current entry, look for a handle to offer a more risk-optimal buy point. Arista's RS line has been trending higher and is approaching a new high. ANET shares dropped 1.1% early Tuesday.
IBD Leaderboard stock Costco surrendered its 552.81 buy point from a cup with handle Monday, and fell 1.6%. Wait for a bullish retake of the entry before buying shares. Shares inched lower early Tuesday.
Chip-equipment maker Axcelis Technologies continues to build a cup with handle that offers a 79.93 buy point, according to IBD MarketSmith chart analysis. The stock rose 0.7% Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock lost 2.3% Friday, extending a losing streak to five sessions. Shares of the electric-vehicle giant moved up 0.5% Tuesday morning, looking to rebound from sharp losses in recent sessions.
Tesla stock has been wrestling to overcome resistance around its 200-day line. Tesla is about 30% off its 52-week high. Its 3-for-1 stock split is set for Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 2.3% Monday, as the stock continues to build the right side of a cup base that has a 179.71 buy point. Another interpretation could be a large double bottom that spans back to January. Either way, the buy point is identical. The last three days of losses could be the early part of a potential handle, which would offer a lower entry.
Bullishly, the stock's relative strength line is holding at new highs, indicating big stock market outperformance. Shares rose 0.3% Tuesday morning.
Microsoft fell 2.9% Monday, extending a losing streak to five sessions and falling further away from its long-term 200-day line. The stock lost 0.1% early Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
