The Dow Jones industrial index rose on Tuesday ahead of a two-day meeting of the Federal Reserve. The war between Russia and Ukraine, a sharp market drop in China and the possibility of a Fed rate hike this week remain key moments in the stock market today. Treasury bond yields remained at their highest levels since July 2019, while U.S. oil prices plummeted.
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After opening on Tuesday, Kupa Software (COUP) fell 27% due to quarterly income statement and management guidance for the current fiscal year.
Among the leaders of the Dow Jones an Apple (AAPL) rose 0.6% and Microsoft (MSFT) today the stock market added 1.5%. UnitedHealth (UNH), watchable Dow Jones shares closed on Monday within striking distance of a new buying point.
Electric vehicle leader Tesla (TSLA) turned lower on Tuesday, threatening to add to Monday’s sharp losses. Overnight, Tesla raised prices in China and the US for the second time in less than a week.
In a still volatile market driven by headlines Costco (PRICE), Quanta Services (WEU), Regeneron Pharmaceutical (REGN) and Vertex Pharmaceuticals (VRTX) are among the best Tuesday stocks to keep an eye on. Keep in mind that current stock market conditions should keep investors mostly in cash and on the sidelines.
Microsoft, Tesla and Vertex are on the IBD leaderboard. Quanta was a recent promotion of the day by IBD. Costco and Regeneron were featured in the “Stocks Near the Buy Zone” column this week.
Dow Jones today: Fed meeting
After the market opened on Tuesday, the Dow Jones Industrial Average rose 0.5% and the S&P 500 rose 0.4%. Nasdaq cut profit to 0.4% in morning trading.
Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker was up 0.95% and the SPDR S&P 500 ETF (SPY) was up 0.8% after opening on Tuesday.
Chinese markets are on a second day of hard selling, with Hong Kong’s Hang Seng down 5.7% and the Shanghai Composite down 5%. Markets in Europe traded lower in the middle of the session, with the Frankfurt DAX and CAC-40 in Paris down over 1%.
The 10-year US Treasury yield fell to 2.12% after rising to 2.14% on Monday, the highest level since July 2019.
U.S. oil prices fell more than 8% on Tuesday as West Texas Intermediate crude traded below $94 a barrel. Chevron (CVX) fell more than 3% to the bottom of the Dow Industrial Average. Oil stocks have bottomed out in the S&P 500. Occidental Petroleum (OKSI) and APA Corporation. (APA) the hardest.
The two-day Fed meeting begins on Tuesday. The central bank is expected to raise interest rates by a quarter of a percentage point, the first increase since 2018. The Fed’s decision will be made at 2:00 pm ET Wednesday.
Stock Market Correction
The stock market was more disappointing on Monday as the high-tech Nasdaq ended with big losses.
Monday The Big Picture commented: “Monday’s stock market correction worsened again as 2020 glamorous stocks continued to fall more than key indices. And the Nasdaq Composite Index fell 2% to reach its intraday low on February 24. Translation: His last rally attempt failed.
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Four Dow Jones stocks to watch now
Dow Jones stocks to watch: UnitedHealth
Managed care giant UnitedHealth shows a 500.10 buy point with a double bottom based entry handle. The stock closed on Monday 3% below its last entry after gaining 1.05% on the session. UNH shares rose 0.6% early Tuesday. UNH was IBD’s stock of the day on Monday.
In a bullish scenario, the relative strength line for stocks is near 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: Costco, Quanta ServicesRegeneron, Vertex
According to IBD MarketSmith’s chart analysis, Costco stock is now showing a cup and handle with a buy point of 545.39. In a bullish scenario, the stock relative strength line has already reached new highs, which is a sign of extreme strength, especially during periods of significant market weakness. Costco shares rose 0.8% early Tuesday.
Last week, Quanta Services shares topped 113.81 early buy points and just below 124.79 consolidated buy points. PWR shares fell 0.1% early Tuesday.
Regeneron Pharmaceutical broke early entry at 645.10 decisively during Monday’s session. Meanwhile, the stock is approaching the buy point of 673.96 on a flat base. REGN shares rose 0.4% on Tuesday.
Shares of IBD Leaderboard Vertex Pharmaceuticals show a flat base with a buy point of 255.03. According to Leaderboard analysis, Vertex Pharmaceuticals is up half position from the quarter on a solid bounce off its 50-day line in recent sessions. VRTX shares rose 1% early Tuesday.
Join IBD experts as they analyze leading stocks during the current stock market correction on IBD Live.
Tesla shares
Tesla shares fell nearly 1% early Tuesday, extending their 3.6% fall on Monday. The stock remains sharply below its long-term 200-day moving average.
Early Tuesday morning, Tesla raised car prices in China and the US for the second time in less than a week. In the US, Tesla raised the prices of all its models by 5-10%. Sunday CEO Elon Musk tweeted“Tesla and SpaceX have seen significant inflationary pressures in the raw materials and logistics industry lately.”
The stock traded as high as 1243.49 on Nov. 4, but fell about 38% from that all-time high by the end of Monday.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock broke its long-term 200-day line with sharp losses on Monday. Apple shares rose 0.6% on Tuesday.
Software leader Microsoft fell 1.3% on Monday, extending its losing streak to three sessions. Stocks are still well below the 200-day line as they continue to build a new base. MSFT shares rose 1.5% 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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