The Dow Jones Industrial Average is down again as the latest Federal Reserve meeting kicks off. Tesla (TSLA) CEO Elon Musk is making Twitter (TWTR) Move this week. apple (AAPL) was rising after it emerged that he had signed a deal with Major League Soccer.
Meanwhile, three stocks are looking to enter. the health (HQY) I tested a point of purchase while Quanta Services (PWR) and Ramako resources (METC) builds bullish bases.
Trading volume decreased on both the Nasdaq and New York stock exchanges, according to preliminary data.
Meanwhile, the benchmark 10-year Treasury yield rose 10 basis points to 3.47%. West Texas Intermediate crude gave up early gains and fell more than 2% to trade at just over $118 a barrel.
Yields soared after the Labor Department unveiled the latest Producer Price Index data. It showed producer prices rose 0.8% in May after rising 0.5% in April, meeting Econoday estimates. Producer inflation jumped 10.8% year over year, just below the 11% estimate.
It comes as the Federal Reserve begins its last two-day policy meeting on Tuesday. The odds of a Fed funds rate hike increased by three-quarters of a point this week due to the latest inflation data.
Nasdaq loses gains as stock market splits
The Nasdaq has outperformed the major indices. It rose late to close 0.2% higher. Bindudu (PDD) performed better with a gain of 12%.
The S&P 500 closed off its lows, losing 0.4%. Swimming pool (POOL) was significantly behind, down 5.2%.
The S&P 500 sectors were mostly negative. Only technology and energy have made progress. Consumer goods and healthcare were worse off.
The little hats were bitten by the bears, as the Russell 2000 index fell 0.4%.
However, growing stocks managed to feed the bears. The Innovator IBD 50 ETF (FFTY), the leader in developing stocks, ended the session 0.8% higher.
Dow Jones today: Apple stock gains amid MLS deal
The Dow Jones Industrial Average was lagging behind the other major indices. It loses about 150 points or 0.5%.
Apple stock was one of the components that made the best progress, although its gains were slight. It ended the day 0.7% higher.
This comes after the company announced a 10-year deal with Major League Soccer to broadcast matches on its live streaming service. It’s another step in sports, after the company began broadcasting Major League Baseball games this year.
JPMorgan also reiterated that Apple shares are overweight, with the company saying it is optimistic about the prospects for Apple TV+. The bank expects to generate around $4.8 billion in revenue by 2025.
But Boeing (BA) was the best performer on the Dow Jones Index today as it rose 5.4%. Procter & Gamble Company (PG) was the biggest loser, declining by 3.1%.
Elon Musk will hold a Twitter meeting
TWTR stock rose on Tuesday. It comes after it emerged that Tesla CEO Elon Musk, who is trying to buy the social media company, will hold a meeting with Twitter employees on Thursday.
The eccentric CEO will answer previously submitted employee questions in a virtual meeting Thursday, according to CNN.
Uncertainty surrounds Musk’s $44 billion takeover of the company.
The Tesla chief said the deal is “on hold” as he waits to see how many bots and fake accounts are on the social media platform.
Twitter stock ended the day off its highs but up 0.5%. It is still rooted below its main moving averages.
Tesla stock also gave up some of the gains but closed 2.4% higher. The ex-leaderboard stock is now well away from the 50 day moving average.
TSLA is also still rooted well below the current consolidating entry level at 1,208.10, according to MarketSmith analysis.
The market is waiting for a significant increase in the Fed rate as yields continue to rise
Outside the Dow: 3 stock eye entries
HealthEquity moved into its buying range above a narrow handle cup with an early entry at 66.23. However, the handle, while retaining the spirit of the final retraction within the base, does not meet the 5-day minimum in terms of length. Therefore, 72.80 might act as the ideal buying point, or 10 cents above the left-hand top of the new mug.
Stocks are pulling back from the 50-day line. While the overall performance is good, the earnings are not perfect. It currently has an EPS rating of 60 out of 99.
The Health Savings Accounts company has reported declining EPS over the past several quarters, but a rebound is expected in fiscal year 2024, which ends in January of that year. Wall Street expects earnings to rise 31% to $1.68 per share.
A couple of stocks are also worth adding to your watch list after building new bullish patterns.
Quanta Services designed a cup pedestal with a handle at a price of 138.56 purchase points. Stocks found support at the 50-day line amid broader weakness.
The relative strength line has reached new highs, which is an encouraging sign. The company boasts three consecutive quarters of accelerated earnings per share growth and sales. Her encouraging work made her a spot on the leaderboard on Tuesday.
Energy remains a hot area and Ramaco Resources coal stock formed a teacup base with a potential buy point of 21.10.
Stocks retraced the 50-day streak last week for the first time since April. The coal industry group currently sits atop the 197th IBD industry group in terms of relative performance for six months.
Analysts expect full-year earnings to rise 559% in 2022 to $5.93 per share. According to MarketSmith data, Big Money has snapped up the stock in recent weeks.
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