The Dow Jones Industrial Average dropped Tuesday morning, as Russian troops closed in on the Ukraine capital of Kyiv. Treasury yields tumbled for a second straight day, while U.S. oil prices surged back above $100 a barrel. Retailers Target and AutoZone ran atop the S&P 500 after reporting fourth-quarter results.
Dow Jones tech titan Apple and cybersecurity leader Palo Alto Networks are among those in or near buy zones. Meanwhile, Tesla made a bullish move Monday, retaking its long-term 200-day line. But Tesla stock remains far from its old highs.
After the close Monday, Lucid Motors and Zoom Video Communications were among the companies reporting their quarterly results. LCID shares plunged more than 17% early, while Zoom stock dropped 1%. Early Tuesday, Target soared more than 11%, despite a mixed fourth-quarter earnings report.
Among the Dow Jones leaders, Apple rose 0.3% and Microsoft traded down 0.5% in today's stock market. American Express, a Dow Jones stock to watch, is back in buy range.
Electric-vehicle leader Tesla declined 0.8% Tuesday, threatening to give back a part of Monday's 7% surge. AutoZone fell to near its 200-day line but recovered to be down about 1%.
Amid a volatile, headline-driven market, Commercial Metals, Northern Oil & Gas, Palo Alto Networks and Ryan Specialty are among Tuesday's top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Commercial Metals was featured in this week's Stocks Near A Buy Zone column. Ryan Specialty is an IPO Leader.
Dow Jones Today: Russian Invasion
For the first stock market open for March, the Dow Jones Industrial Average traded down 0.6%, while the S&P 500 dropped 0.4%. The Nasdaq descended 0.4% in morning trade. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust lost 0.4%, and the SPDR S&P 500 ETF declined 0.5% after Tuesday's open.
The 10-year Treasury yield ticked down to 1.78% Tuesday morning as investors piled back into bonds and other safe-haven instruments. On Monday, the 10-year Treasury yield closed at 1.84%, tumbling from Friday's close above 1.98%. Meanwhile, U.S. oil prices surged more than 5% Tuesday, with West Texas Intermediate crude trading above $101 a barrel.
Early Tuesday, Russian forces bombarded Kharkiv — Ukraine's second largest city — in an apparent shift in strategy toward heavy shelling of Ukrainian cities. Britain's defense intelligence agency reported Russian ground troops, including a miles-long convoy approaching Kyiv from the northwest, had made little headway over the past 24 hours, "probably due to logistical difficulties."
On Monday, representatives from Ukraine and Russia met for peace talks while fighting continued. Both sides agreed to meet again in the coming days on the Poland-Belarus border.
Stock Market Correction
The stock market posted mixed action Monday, as the Dow Jones Industrial Average and S&P 500 showed modest losses. The Nasdaq moved up slightly after a late-day rally. Tuesday will be Day 4 of the new rally attempt, which means a follow-through day — which signals the start of a new uptrend — is possible anytime now. Amid the current volatility, it's an important time to read IBD's The Big Picture column.
Monday's The Big Picture commented, "It's hard to tell what, if anything, is moving the market from hour to hour. War headlines certainly factor into stock moves, but it also seems that investors are struggling with multiple and unfamiliar risks. After Thursday's positive reversals and Friday's gains, the stock market rallied in the final 90 minutes Monday, keeping alive hopes for a bottom. The market is on track for a possible rally confirmation as early as this week. Market bottoms often happen when investors least expect it, so be ready with a well-researched watchlist."
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.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: American Express
American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares regained the buy point Friday with a strong rebound and are still in buy range. AXP stock traded down 2.5% in morning trade Tuesday.
Bullishly, the stock's relative strength line is right at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Watch: Commercial Metals, Northern Oil, Palo Alto, Ryan Specialty
Texas-based Commercial Metals — a manufacturer of metal products for the construction industry — is trying to break out past a 38.82 buy point in a consolidation. Shares are right below the entry, as the stock briefly topped the buy point Monday before paring gains. The 5% buy area goes up to 40.76. CMC stock shows a 98 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. CMC shares were up 2% Tuesday morning.
Northern Oil & Gas is breaking out past a cup-with-handle's 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares moved up more than 2.5% Tuesday.
Cybersecurity leader Palo Alto Networks broke out past a consolidation's 572.77 buy point during Monday's 4.3% gain. The 5% buy area goes up to 601.41. The RS line is at new highs. Last week, the company reported strong earnings and sales. Palo Alto shares fell almost 1% early Tuesday.
IPO Leader Ryan Specialty is above a 40.65 buy point in a double bottom with handle. Last week, the IPO stock found strong support around its 50-day line. RYAN shares were breaking past the entry Tuesday, climbing more than 2%.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock dropped 1.2% Tuesday morning, on pace to snap a three-day win streak. Shares decisively regained their long-term 200-day line during Monday's surge. Now look for the stock to continue its move up the right side of a new base. The next key test for the stock could be the 50-day line, which sits about 10% above current price. A retake of that line would be bullish for the stock's base-building process, while heavy resistance could signal a longer-term consolidation period.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 30% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares are about 7% away from the new buy point. AAPL stock found support at its long-term 200-day line last week, but remains below its 50-day moving average. Apple shares rose 0.5% Tuesday.
How the Dow Jones stock handles potential resistance at the 50-day line will be key to the likelihood of a breakout. If the stock finds stout resistance, then a more lengthy consolidation period would be likely. However, if the stock decisively regains that level, then a breakout could be on the near horizon. For now, Apple stock is about 4% below the 50-day line, so there is some time before a potential test.
The stock's relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions are hesitant to sell their Apple shares.
Software leader Microsoft rose 0.5% Monday, extending a win streak to three sessions. The Dow Jones software leader is just under the long-term 200-day line, as it continues to build a base. MSFT stock fell 0.5% Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
