The Dow Jones Industrial Average dropped sharply Tuesday morning, as the 10-year Treasury yield surged to a two-year high. Apple and Tesla stock sold off in early trade. And Goldman Sachs missed earnings estimates Tuesday.
Among the Dow Jones leaders, Apple fell nearly 1% Tuesday, while Microsoft was down 1.9% in today's stock market. Also among the Dow 30, Cisco Systems is in buy range above a recent entry, while Goldman Sachs reported earnings ahead of the open.
Electric-vehicle leader Tesla traded down more than 2%. Lucid Group dropped around 4%. And Chinese EV leaders Li Auto and Xpeng Motors were lower.
Among Tuesday's top stocks to buy and watch, Applied Materials, Mosaic, SVB Financial and Taiwan Semiconductor Manufacturing are in or near new buy zones. Keep in mind the current stock market health isn't exactly conducive to new purchases.
Microsoft and Tesla are IBD Leaderboard stocks. Applied Materials is an IBD SwingTrader stock. SVB Financial was featured in last week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields
After the stock market open Tuesday, the Dow Jones Industrial Average moved down 1.5%. The S&P 500 dropped 1.5% and the tech-heavy Nasdaq composite lost 1.8%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 1.5% in morning trade, and the SPDR S&P 500 ETF fell 1.1%.
The 10-year Treasury yield briefly surged above 1.85% Tuesday morning, hitting a two-year high, before easing to 1.83%. On Friday, the 10-year Treasury yield finished just above 1.77%.
Elsewhere, West Texas Intermediate crude oil prices advanced more than 1%, briefly trading above $85 a barrel. U.S. oil producer stocks represented nine of the 10 strongest early moves among S&P 500 stocks. Devon Energy, ConocoPhillips and Apache led.
Stock Market Rally
The stock market posted a mixed performance Friday, as the Nasdaq appeared to again find support at the long-term 200-day line. The S&P 500 remains below its 50-day support level.
Friday's The Big Picture commented: "The coming week is now key, as a raft of banks and other financial companies are reporting Q4 results as earnings season gets underway."
For more daily stock market commentary, check out IBD's The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Earnings: Goldman
Dow Jones stock Goldman Sachs tumbled 2.5% Friday, closing below its long-term 200-day line. Shares continue to trace a flat base with a 426.26 buy point, but last week's sell-off was a significant setback.
The company reported mixed December-quarter results ahead of Tuesday's open, topping revenue targets but missing earnings estimates. GS shares declined more than 6% Tuesday.
Among other financials, Charles Schwab reported earnings ahead of Tuesday's open. Schwab reported adjusted earnings of 86 cents per share, a 16% gain but two pennies below forecasts. A 13% revenue increase, to $4.71 billion, also stopped short of expectations. Schwab stock dropped around 1% in morning trade.
Dow Jones Stocks To Buy And Watch: Cisco Systems
Dow Jones stock Cisco Systems closed Friday in the 5% buy zone past a 58.73 double-bottom entry, according to IBD MarketSmith chart analysis. Shares fell 2.5% Tuesday.
Positively, the stock's RS line made a new high in recent weeks, confirming the Dow Jones stock as a market leader.
Three Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Applied Materials, Mosaic, SVB Financial, Taiwan Semi
IBD SwingTrader stock Applied Materials surged 6.25% Friday, finishing at the top of the 5% buy area above its 159.10 flat-base buy point, according to IBD MarketSmith chart analysis. Bullishly, the stock's relative strength line made a new high Friday. AMAT shares lost 1.7% Tuesday.
Mosaic added to Wednesday's breakout move, advancing 3.9% Friday. Shares closed in buy range above a 41.25 entry on a cup with handle. MOS stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock was down 0.5% Tuesday.
SVB Financial is building a cup with handle with 752.78 buy point. Shares slid 1% Friday, finishing just below the 50-day line. The Santa Clara, Calif.-based bank reports fourth-quarter results on Thursday. Shares were unchanged Tuesday.
Taiwan Semiconductor added to Thursday's breakout move past a 135.60 buy point in a cup with handle, rallying more than 1% Friday. The 5% buy area tops out at 142.38. TSM stock dropped more than 3% Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors
Li Auto stock rose for a fourth straight session Friday, gaining 1.2%. The stock is moving up the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares dropped 1.8% Tuesday.
Xpeng Motors rallied 4.6% Friday, moving further above the 50-day line. Shares were fashioning a cup with handle, but that formation is gone now. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares fell 3.2% Tuesday.
Among U.S.-based EV stocks, Lucid Motors shares dropped around 4% Tuesday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock's basing process ran into some trouble after Thursday's 8.85% plunge and the stock is below the key 50-day line.
Tesla Stock
Tesla stock traded down more than 2% Tuesday, threatening to give up the entirety of Friday's 1.75% gain. Shares remain below their 50-day line following Thursday's tumble. A new handle entry at 1,208.10 is available.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Friday about 16% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.5% Friday, recovering a part of Thursday's 1.9% decline. Shares are about 13% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares fell nearly 1% Tuesday.
Software leader Microsoft rallied 1.8% Thursday, as the top Dow Jones stock continues to etch a flat base with a 349.77 buy point. With the stock below its 50-day line, it clearly has more work to do before a potential breakout. Shares were down almost 2% Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
