Dow rises after headline inflation report; Fed meeting to begin

The Dow Jones Industrial Average rose on Tuesday morning, as the market headed for a modest recovery after Monday’s stock market plunge. More inflation data was released with the Labor Department’s Producer Price Index early Tuesday, while the highly anticipated two-day Federal Reserve meeting will also begin.


inspiration (ORCL) announced its earnings after Monday’s close. Oracle shares jumped 12% in morning trading after the company reported better-than-expected earnings and sales results.

Amazon (AMZN) and China-based stocks backed Nasdaq. Amazon traded 1%, eyeing a five-day sell-off, after JPMorgan reiterated the stock’s overweight rating and price target of 200. Among ETFs that track China-based issuances, the KraneShares CSI China Internet ETF (KRANEShares CSI China Internet ETF) KWEB) rose 3% and the iShares MSCI China ETF (MCHI) was up 2% in early trade.

electric car giant Tesla (TSLA) reversed nearly 1% on Tuesday. CEO Elon Musk confirmed the launch of the full self-driving program within two weeks. Elsewhere, technology leaders at Dow Jones apple (AAPL) and Microsoft (MSFT) erased early gains after the stock market opened today.

Amid a deep correction in the stock market, the leader of Dow Jones chevron (CVX), as well Carlisle (CSL), the health (HQY), Northrop Grumman (NOC) and world wrestling entertainment (WWE), among the biggest stocks to watch in IBD on Tuesday.

World Wrestling Entertainment is a shareholder of the IBD Leaderboard. And WWE appeared in the stock column near the buy zone for this week.

Dow Jones today: Treasury yields, oil prices, Fed meeting, inflation

After Tuesday’s opening, the Dow Jones Industrial Average rose 0.1%, and the S&P 500 was trading flat. The Nasdaq Composite Technology Weight Index reversed 0.2% lower in morning trade.

Among the exchange-traded funds, the Nasdaq 100 index tracking the Invesco QQQ Trust (QQQ) is down 0.1%. The SPDR S&P 500 ETF (SPY) is up 0.15% in early trade.

The 10-year Treasury yield fell to 3.35% on Tuesday morning after Monday’s rally to 3.36%, its highest level since April 2011. Meanwhile, US oil prices remain near recent highs, with West Texas Intermediate trading above 121 dollars per barrel. In early March, West Texas Intermediate crude briefly exceeded $130 a barrel.

Labor Department data 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. The Producer Price Index is a measure of pricing power based on the selling prices that domestic producers receive for their production.

The Federal Reserve will begin its last two-day policy meeting on Tuesday, and it is widely believed that the central bank will raise its benchmark interest rate by half a percentage point on Wednesday. But expectations that the Fed will have to move more aggressively this year have been rising since Friday’s heated inflation report.

sell stock market

The stock market sold off on Monday, as the major stock indexes ended heavy losses, starting the week on a bearish note.

Monday’s column, The Big Picture commented, “After the opening gap, indexes remained weak until closing. The four-day streak of losses in major indexes is now the largest since March 2020, according to market data from Dow Jones. Sharply lower rivals that year’s collapse Covid market. Except this time, we are already at least five months into a market downturn.”

If you are new to IBD, consider taking a look at the CAN SLIM Stock Trading System and Basics. Recognizing chart patterns is one of the keys to investing guidance. IBD offers a wide range of developing stock listings, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies close to a point of purchase, or develop custom displays at IBD MarketSmith.

Five Dow Jones stocks to watch right now

Dow Jones stocks to watch: Chevron, Merck, Travelers

Energy giant Dow Jones and energy giant Chevron have abandoned their flat base buying point of 174.86, according to IBD MarketSmith chart analysis, after Monday’s 4.6% drop. CVX Stock boasts a perfect 99 IBD compound rating, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics. CVX shares rose 1.5% Tuesday morning.

merck (MRK), a Dow Jones and IBD Big Cap 20 stock, fell more than an 89.58-handle buy point Monday, as the shares fell another 2.5%. The stock gave up the support around the key 50-day line on Friday, which is a sell signal. MRK shares were slightly lower on Tuesday morning.

insurance giant travelers (TRV) Continues to build a flat base at 188.08 buy points. Shares are down more than the 50-day streak after Monday’s 0.9% drop. Travelers’ shares were up 0.4% early Tuesday.

Two of the most important growth stocks to watch at Cursstock market correction

Stocks to watch: Carlisle, HealthyQuality, Northrop, WWE

IBD’s latest stock for the day Carlisle is showing a steady base at 275.23 buying points, even as the stock tumbled 4.6% on Monday to give up its 50-day line. Carlyle shares were down 0.4% Tuesday morning.

HealthEquity tracks a cup with a handle at 66.23 buying points, as shares fell 0.9% Monday. The stock is finding support around the major 50-day line and is only 2% away from the most recent entry. Keep in mind that a weak market environment should keep you on the sidelines. Shares were up 1.1% on Tuesday morning.

Northrop Grumman is trying to find much-needed support at the 50-day moving average, but remains about 3% below the handle cup buy point at 477.36. Shares of the National Oil Corporation rose on Tuesday.

IBD Leaderboard Stock World Wrestling Entertainment is testing 63.81 buying points for a flat base, according to IBD MarketSmith chart analysis, as WWE shares surged Monday. On May 25th, the stock made a strong breakout after entering. But stocks are just above the latest entry in the new wave of market selling. WWE shares traded 0.5% higher on Tuesday.

According to leaderboard commentary, the WWE stock’s relative strength streak is at an all-time high and has been gaining ground since January. The base is the first stage, which is a bonus for the graph.

Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock fell 7.1% on Monday, adding to Friday’s 3.1% decline. Stocks threatened to add to those losses, trading down about 1% on Tuesday morning.

The stock is still sharply below its 50 and 200 day moving averages. Tesla stock traded as high as 1,243.49 in November. 4. Stocks are about 48% of this record.

Dow Jones Leaders: Apple and Microsoft

Among Dow Jones shares, Apple shares sold 3.8% on Monday, hitting their lowest level since June 2021. The stock is well below the long-term 200-day streak and about 28% from its 52-week high. AAPL stock traded flat on Tuesday, with Deutsche Bank maintaining its buy rating, but lowering its target price from 200 to 175.

Software leader Microsoft lost 4.2 percent on Monday, still sharply below its 50 and 200-day streaks. The stock has closed more than 30% from its 52-week high. MSFT stock remained unchanged on Tuesday.

Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

You may also like:

Top growth stocks to buy and watch

Learn how to time the market with IBD’s ETF Market Strategy

Find the best long-term investments with IBD long-term leaders

MarketSmith: Research, charts, data, and training in one place

How to Find Growth Stocks: Why IBD Simplifies the Search for Top Stocks

Leave a Comment