The major indexes rose from session lows Tuesday afternoon. The Dow Jones Industrial Average was 0.7% lower as the Fed's two-day meeting kicked off.
The S&P 500 also lifted from the lows for the day, showing a 0.6% drop at 1:30 p.m. ET. The Nasdaq composite also showed slight signs of recovery but still held a 0.6% drop.
Indexes remained below their 50-day moving averages at the hour. Volume was higher on the NYSE and lower on the Nasdaq compared with the same time Monday.
The small-cap Russell 2000 did not get any relief, however, and languished at the day's lows, shedding 0.5%. Its chart looks bearish.
The Innovator IBD 50 ETF fell a sharp 1.3%.
Crude oil rose 0.5% to trade at $91.86 a barrel, on pace for the highest settle since August 2022. Oil is at 10-month highs as Saudi and Russian production cuts tighten supply. Rising oil prices are the next challenge for the Fed's battle against inflation.
The yield on the benchmark 10-year Treasury note rose 1 basis points to 4.33%.
The Fed's two-day meeting starts Tuesday. The CME FedWatchTool shows a 99% chance that Chair Jerome Powell and other Fed policymakers will hold rates steady on Wednesday. Traders see a 28.8% chance of a 25-basis-point hike in November.
Housing starts fell to 1.283 million in August after July's 1.447 million and below consensus views of 1.435 million, according to Econoday. However, building permits were stronger, up to 1.543 million, above views of 1.440 million and July's 1.443 million.
Instacart Pops In IPO
Instacart parent Maplebear popped in the first hour of its trading debut on Tuesday. Shares soared above an initial listing price of 30. Trading opened at around 42 and hit a high near 43. The stock was quoted around 39.30 at 1:42 p.m. ET.
It was another good showing for the IPO market.
Among EV plays, Nio is offering a senior convertible note for $1 billion to repurchase some existing debt and to meet general corporate expenses. Nio gapped below its 200-day line Tuesday and is trading below 10.
Dow Jones Stocks
Chevron reversed and fell in the afternoon while Amgen held some of its earlier gains in the Dow. Chevron is in a long consolidation with a buy point of 189.68. Amgen is approaching 268.24, a cup-with-handle entry. Disney fell after meeting resistance at the 50-day line, despite a recent bullish analyst initiation on the stock.
Apple rose 0.5% at the hour. The stock climbed 1.7% Monday on reports of strong demand for the high-end models of the iPhone 15.
UAW workers set Friday as a deadline for expanding their strike as the union continues negotiations with the Big Three automakers. Ford and General Motors rose more than 2%. Stellantis climbed 2.4%. The move comes as negotiations between the strikers and employers remain in a deadlock.
Stocks Moving Today
Heavy construction company Fluor is breaking out of a cup with handle with a buy point of 37.20. Volume is heavy. The buy zone goes to 39.06.
Samsara pared some losses but traded about 3% lower. The stock has triggered the 7% sell rule. Shares broke out at 29.79 after second-quarter results came out Aug. 31, but have declined more than 10% from the buy point in strong volume. The stock has also fallen below the 50-day line, another sell signal.
FedEx earnings are due Wednesday. But shares have undercut their base and the 50-day line in a three-day selling spree.
AutoZone pared most of its morning's losses after earnings were announced and is trying to reclaim its converged 50- and 200-day lines. August-quarter ales rose 6.4% to $5.7 billion from the prior-year quarter. Earnings of $46.46 per share were 15% higher vs. the same period.
Darden Restaurants is trading near the bottom of a flat base with an entry at 173.06; earnings are due Thursday. But the stock is well below the 50-day line. Also below the 50-day line ahead of earnings Wednesday are General Mills and KB Home. KBH stock is in a consolidation with an entry at 55.37.
CVS Health is retaking the 50-day line after analysts at Evercore upgraded the stock to outperform due to improved operations. Analysts revised their price target to 83 from 81. The stock remains well off 52-week highs.
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