The Dow Jones Industrial Average turned lower on Tuesday morning, hoping to recover from Monday’s stock market plunge. Treasury bond yields jumped and US oil prices surged above $125 a barrel after Bloomberg reported that President Biden is about to ban US imports of Russian energy. The ongoing Russian invasion of Ukraine, along with the Western reaction, remains a key moment in the stock market today.
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Before opening Tuesday Dick sporting goods (DKS) and Olaplex (OLPX) reported their quarterly results. DKS shares rose 3% and OLPX shares jumped about 5% after strong results.
Among the leaders of the Dow Jones an Apple (AAPL) lost 0.2% and Microsoft (MSFT) fell 0.2% in today’s stock market. UnitedHealth (UNH), watchable Dow Jones shares closed on Monday within striking distance of a new buying point.
Electric vehicle leader Tesla (TSLA) fell 1.5% early Tuesday, threatening to widen Monday’s decline.
In a volatile market, Hymn (ANTM), Costco (PRICE), COAG (CSX) and Union Pacific (UNP) are among the best Tuesday stocks to watch. Keep in mind that current stock market conditions should keep investors in the cash and on the sidelines.
Microsoft and Tesla are on the IBD leaderboard. Costco and CSX were featured in the “Stocks Near the Buy Zone” column this week.
Dow Jones today: Russian invasion, rising oil prices
After the market opened on Tuesday, the Dow Jones Industrial Average lost 0.3% and the S&P 500 shed 0.4%. The Nasdaq fell 0.55% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.1% and the SPDR S&P 500 ETF (SPY) rose 0.1% after opening on Tuesday.
The 10-year Treasury yield jumped to 1.85% on Tuesday morning as the bonds were sold down after plans announced by the European Union to launch a “potentially large” joint bond issue to finance energy and defense spending in the face of a Russian attack on Ukraine. . The 10-year bond closed at 1.75% on Monday.
Meanwhile, U.S. oil prices rose more than 5% on Tuesday as West Texas Intermediate topped $125 a barrel. WTI briefly rose above $130 a barrel on Monday, reaching its highest level since September 2008, according to Dow Jones market data.
Russia continued shelling Ukrainian cities after low-level officials from both sides met on Monday for a third round of talks. The negotiators agreed on some plans to help people trapped in the fighting, but there has been little progress on a ceasefire. A high-ranking Russian diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Attempted stock market rally
The stock market showed a more disappointing performance on Monday, as major stock indexes closed with big losses. Despite Monday’s losses, all three major stock indexes remain above their February 24 intraday lows, meaning Tuesday will be the 9th day of the ongoing rally attempt.
Monday The Big Picture commented: “Once the indices have broken the lows of Feb. 24, the rally attempt is complete. Frankly, this technical signal seems to be just a formality. The stock market shows no appetite for risk, and the main pain points – Russia, inflation, rising interest rates – show no signs of easing.”
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Four Dow Jones stocks to watch now
Dow Jones stocks to watch: UnitedHealth
Managed care giant UnitedHealth is just below the 501.03 buy point in a double bottom base. Shares closed on Monday about 3% below their last record. UNH shares fell more than 2% on Monday. UNH shares fell another 1% early Tuesday.
In a bullish scenario, the relative strength line of stocks is at new highs, which indicates a significant lead in the stock market.
Four Major Growth Stocks to Watch in the Current SituationRStock Market Correction
Stocks to watch: Anthem, Costco, CSX, Union Pacific
The anthem returned below its entry level at 470.12 after falling 4.7% on Monday. Anthem was recently listed on IBD Stock Of The Day. Shares fell 0.3% on Tuesday morning.
Retail giant Costco cut earnings to 0.6% on Monday but still handily outperformed the major stock indexes. COST shares are trading on the right side of the bottom of the cup with a buy point of 571.59. COST shares show a solid 94 out of a perfect 99 IBD Composite Rating according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical performance. Costco shares fell 0.2% early Tuesday.
CSX is trying to break through the buy point 38.11 in the base of the cup. The stock broke after Monday’s entry but reversed 1.1% lower to close below a buy trigger. The 5% buy zone rises to 40.02. CSX shares rose early Tuesday.
Shares of IBD Leaderboard Union Pacific remain in the 5% buy zone despite falling 1.2% on Monday. Last week, UNP stock broke through the entry level at 256.21. The 5% buy zone peaks at 269.02. UNP shares rose 0.1% early Tuesday.
Friday’s progress justified a quarter or half increase in position size, according to leaderboard analysis. The RS line has already hit new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks during the current stock market correction on IBD Live.
Tesla shares
Tesla shares fell 1.5% early Tuesday, threatening to add to Monday’s 4% drop and extend a three-day losing streak. The stock is now right below its long-term 200-day moving average. Monday’s decisive break below the 200-day line signals the possibility of further weakness.
The stock traded as high as 1243.49 on Nov. 4, but fell about 353% from that all-time high by the end of Monday.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a buy point of 176.75, according to IBD MarketSmith’s chart analysis. The stock is about 10% from its new buy point after losing 2.4% on Monday. AAPL stock found support at its long-term 200-day line on Feb. 24 but remains below its 50-day moving average. Apple shares lost 0.1% on Tuesday.
The stock’s relative strength line remains near recent highs amid a weak stock market, indicating that institutions are hesitant to sell their Apple shares.
Shares in software leader Microsoft fell 3.8% on Monday to close below the 200-day mark. Stocks continue to build a new base. MSFT shares fell early Tuesday.
Don’t forget to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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