The Dow Jones Industrial Average fared best out of the major indexes on Tuesday, thanks to strong Walmart earnings. Tesla CEO Elon Musk scored a rare win in his fight with Twitter. Coinbase and Riot Blockchain slumped as Bitcoin struggled.
Meanwhile, a number of notable stocks including Costco Wholesale, Hub Group and FactSet Research made bullish moves.
Volume was up on the Nasdaq and the New York Stock Exchange, according to preliminary data.
The yield on the benchmark 10-year Treasury note rose two basis points to 2.81%. West Texas Intermediate crude oil fell around 3% to just over $86 per barrel.
Economic data was mixed on Tuesday. U.S. industrial production rose a better-than-expected 0.6%, higher than June's flat reading. On the flip side, July housing starts fell 9.6% to an annual rate of 1.446 million units, the lowest level since February 2021.
Nasdaq Falls As Small Caps Struggle
The Nasdaq composite underperformed blue chip indexes but closed well off lows for the day, dipping 0.2%. Ross Stores was a Nasdaq-100 standout, gaining 2.8%.
The S&P 500 managed to gain ground after shaking off early weakness, inching up 0.2%. Take-Two Interactive Software impressed here as it gained 7.2%.
The S&P 500 sectors were mixed, with consumer staples and consumer discretionary faring best, while technology, energy and real estate underperformed.
Small caps struggled throughout the session, dropping the Russell 2000 0.1%.
The Innovator IBD 50 ETF, a bellwether for growth stocks, suffered the most, dipping 1.3%.
Dow Jones Today: Walmart Earnings Boost Index
The Dow Jones Industrial Average outperformed after two retail components reported solid Q2 earnings. It ended the day with a 0.7% gain.
Walmart stock fared best on the Dow Jones, jumping 5.1% and gapping through its 200-day moving average, according to MarketSmith analysis. The retail giant attracted buying interest after beating earnings and sales views that were lowered twice in the last three months.
In addition, it reaffirmed guidance for the second half of the year.
Management said the firm had canceled billions of dollars in orders to help align inventory levels with expected demand.
Home Depot further bolstered the Dow, topping Q2 earnings views. It ended the session with a 4.1% gain.
Investors were relieved after the company reaffirmed guidance. More than half of its online orders were fulfilled in person during the quarter, driving floor traffic, while professional sales growth outpaced consumer sales growth.
Tesla Stock Falls Despite Elon Musk Twitter Win
Tesla stock fell even as CEO Elon Musk scored a rare win in his ongoing legal battle with Twitter.
Last week, his attorneys asked for documents from 22 Twitter employees. The judge ruled the social media firm has to collect, review, and produce documents from just one - former general manager for consumers Kayvon Beykpour.
Musk is seeking more information on the number of bot accounts on the platform. He is trying to walk away from the $44 billion takeover deal due to the number of bots and fake accounts on the website.
Tesla stock ended the day down 0.9%. It has formed a consolidation with a 1,152.97 buy point, according to MarketSmith analysis.
TSLA stock remains a long way from its entry, which makes the company one to watch for now. It has managed to hold above the key 200-day moving average.
Twitter stock fell late after spending most of the session in positive territory. closing down 0.2%.
Coinbase Stock Hit As Bitcoin Falls
Coinbase stock took it on the chin as Bitcoin fell again, punishing other cryptocurrencies.
COIN has been trying to hold up after slashing its full-year forecast last week. But Coinbase stock was punched nearly 2% lower Tuesday in above-average volume.
It was knocked back below its 10-day moving average but held steady above the 21-day exponential moving average. It remains down 64% since the start of 2022.
Bitcoin pared losses for the day but remained stuck below the $24,000 mark, after giving up 0.4% in the past 24 hours, according to CoinDesk.
Other cryptocurrency plays also reversed. The Grayscale Bitcoin Trust fell nearly 1% while Bitcoin mining play Riot Blockchain plunged 6.1%.
Meanwhile, troubled crypto lender Celsius Network is set to run out of cash by October, according to a court filing. Celsius filed for Chapter 11 bankruptcy in mid-July and is trying to restructure its business.
S&P 500 Hits Pause As Five Stocks Top Buy Points
Outside Dow Jones: Costco Stock Passes Buy Point
Costco is in a buy zone after it cleared a cup-with-handle buy point of 552.81. The RS line is trying to turn higher.
This is a first-stage pattern, which is more likely to result in strong profits.
The bullish move saw Costco stock win a place on the prestigious IBD Leaderboard list of top stocks on Tuesday.
Hub Group closed the day off highs but is actionable after it cleared a consolidation pattern. The entry point here is 86.55.
Earnings are very strong for the logistics stock, with its perfect 99 EPS Rating. It is also in the top 10% of stocks in terms of price performance over the past 12 months.
FactSet Research closed just below its entry after earlier clearing a double-bottom base. The buy point here is 448.69.
All-around performance is excellent, with its IBD Composite Rating at 98 out of 99. Big Money has been acquiring the stock of late, with its Accumulation/Distribution Rating coming in at "B".
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
