Stocks closed narrowly mixed Tuesday as the Dow Jones Industrial Average reversed modestly lower. The stock market today had a muted response to Fed Chair Jerome Powell's testimony to Congress.
The Dow closed 0.1% lower but continued to hold above its 21-day exponential moving average. The Nasdaq composite and S&P 500 finished 0.1% higher as both extended their streak of record closing highs.
The small-cap Russell 2000 fell nearly 0.5% and closed near session lows.
Volume was lower on the Nasdaq and higher on the New York Stock Exchange, according to preliminary data.
The Innovator IBD 50 exchange traded fund reversed lower 0.5% on the stock market today. It remains above its 21-day line and its 50-day moving average.
In bonds, the 10-year Treasury yield climbed 3 basis points to nearly 4.29%. And U.S. crude oil prices fell to around $81.63 a barrel.
Updated 1:39 p.m. ET
Restaurant Stocks Sink Broadly
IBD 50 stock Chipotle Mexican Grill sank around 2% and fell further below its 50-day line, triggering a sell signal.
Likewise, Cava Group stumbled nearly 4% and undercut its 21-day exponential moving average.
Domino's Pizza skidded around 3.3% and slid deeper below its 50-day line. The pizza stock undercut a flat base.
Texas Roadhouse retreated nearly 2% but held above its 50-day line. Shares are extended from a flat base with a 157.12 buy point. Sweetgreen toppled more than 5% and sank further below its 50-day line. The break of support triggered a sell signal.
Dow stock McDonald's dropped 1% on the stock market today.
Updated 12:16 p.m. ET
Citigroup In Buy Zone In Stock Market Today
IBD 50 stock Citigroup jumped 3% and is squarely in a buy zone out of a flat base with a 64.98 buy point. The 5% buy range reaches to 68.23. The banking and investment company reports its second-quarter earnings results on Friday morning before the market open.
Fellow IBD 50 stock MakeMyTrip raced 5% higher and hit the 89.83 buy point out of a cup base. Shares are in a buy zone up to 94.32. BofA Securities raised its price target to 95 from 85 and held its buy rating on the India-based online travel stock on Monday.
Another IBD 50 name, Arista Networks, added 1% and reached an all-time high on Tuesday. Shares are on pace for 10 straight days of increases. The data-center networking stock reached the 20% profit zone of a cup base with a 307.74 buy point.
Updated 10:54 a.m. ET
Fed Chief Powell Speaks To Congress
Fed chief Powell presented a Semiannual Monetary Policy Report to the U.S. Senate Committee on Banking, Housing, and Urban Affairs which started at 10 a.m. ET. He plans to address the House Committee on Financial Services on Wednesday.
In prepared remarks, Powell said that recent inflation readings, "have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward 2 percent."
"We know that reducing policy restraint too soon or too much could stall or even reverse the progress we have seen on inflation," Powell went on to say. "At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face."
He added: "Reducing policy restraint too late or too little could unduly weaken economic activity and employment."
Magnificent Seven Stocks Mixed
Meanwhile, IBD 50 and Leaderboard stock Nvidia was back on the rise, with a gain of nearly 4% as it climbed back from a brief and harsh sell-off in late June.
KeyBanc raised its price target to 180 from 130 on the Magnificent Seven stock and maintained its overweight rating on the stock on Tuesday. The stock remains above an alternative buy point at 97.40.
Fellow Magnificent Seven stock Tesla rose nearly 2% and is on track for its 10th-straight session in the black. The stock is having its best stretch since the 10 days that ended Feb. 3, 2023, when it rose 42.39%, according to Dow Jones Market Data. Shares of the electric vehicle giant have gained nearly 40% during this latest hot streak.
Stock Market Movers
Dow Jones stock Intel flirted with break-even territory after Monday's 6.2% jump in heavy volume. Monday's increase was sparked by news that Melius Research named Intel as one of the stocks that could see strength from artificial intelligence in the second half of 2024.
Oil giant BP tumbled roughly 4% on the stock market today after the company said it expects weak second-quarter refining margins. The oil stock fell further below its 50-day and 200-day moving averages.
This follows Monday's news of an ExxonMobil government filing that warned natural-gas prices and lower refining margins could weigh on Exxon's earnings in the latest quarter. Exxon stock edged higher Tuesday but remained below its 50-day line. It is finding support, however, at its 200-day line in an early-stage flat base.
Monday.com reversed and fell more than 2% after early gains despite Wolfe Research initiating coverage with an outperform rating and a 300 price target. The IBD 50 workflow management software stock is at the bottom of the 5% buy zone up to 251.18 of a cuplike base with a 239.22 buy point.
Tesla Keeps Racing Amid Mixed Market; AI Giant On Tap
Corning Keeps Rising After Big Gain
Corning jumped another 3% to above 44 a share after Monday's explosive 12% gain. On Tuesday, UBS raised its price target to 44 from 38. The broker maintained its neutral rating on the specialty glass stock.
Corning raised its second-quarter sales estimates. It also predicted earnings at the high end or above its previous range of 42 cents to 46 cents a share. Corning stock topped the 20% profit zone of a flat base with a 33.87 buy point.
Helen of Troy plummeted around 30% in huge volume on the stock market today after the consumer products company missed fiscal first quarter adjusted earnings and sales estimates.
The company also cut its fiscal 2025 profit outlook. Helen of Troy stock is deep below its 50-day line and has dropped more than 48% so far this year.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
