The Dow Jones Industrial Average fell 175 points on Tuesday amid the early release of economic data and the last trading session in February. retail giant Goal (TGT) rose 3% as earnings fell less-than-expected, but Chief Executive Brian Cornell warned of a “very challenging environment.” And Tesla (TSLA) stock reversed lower, falling 0.5% ahead of Wednesday’s investor day.
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A slew of economic data was due Tuesday, including two housing reports — the Case-Shiller Home Price Index and the Federal Housing Finance Agency’s House Price Index. The Case-Shiller Index was up 5.8% in December from the previous December, beating estimates of 5.3%. The FHFA index fell 0.1% in December, less than the expected 0.3% drop.
The Chicago PMI unexpectedly fell to 43.6 in February versus estimates that had called for a rise to 45.0 from 44.3 in January. And the consumer confidence index fell to 102.9 in February versus an expected rise to 108.5 from 107.1 in January.
On the earnings front Western Petroleum (OXY) missed its fourth-quarter profit targets late Monday, sparking a 1.6% gain in morning trade. The Warren Buffett-backed energy giant reported a 9% drop in earnings to $1.61 per share during the period, while revenue rose 4% to $8.22 billion. For the year, earnings soared 267% to $9.35 per share, while revenue rose 43% to $37.1 billion. Occidental also increased its dividend and announced a $3 billion share repurchase plan.
Elsewhere, advance auto parts (AAP), AutoZone (AZO), Shift4 payments (FOUR), working day (WTAG) and Zoom video communication (ZM) were gain drivers.
AAP shares are up nearly 4% in early trade, while AutoZone shares are down less than 1%. FOUR’s stock rose 9% while Workday’s stock trended higher. Finally, Zoom stock is up 3% in early morning trading.
Other notable companies reporting earnings this week are C3.ai (AI), Costco Wholesale (COSTS), money tree (DLTR), cabbage (KSS), lowes (LOW), Macy’s (M), Ross stores (RUST) and Foreclosure (CRM).
stock market today
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading slightly lower after the market open.
IBD Leaderboard Watch List Palo Alto Networks (PANW), deer (DE), Great brothers (Land wing stop (WING) – as well as Dow Jones stocks American Express (AXP), Cisco systems (CSCO) and JPMorgan Chase (JPM) – are among the top stocks to watch given the recent stock market weakness.
Palo Alto is a stock on the IBD Leaderboard watch list. Deere was a recently chosen IBD Stock of the Day. Cisco Systems and Wingstop were featured in last week’s ‘Stocks Near a Buy Zone’ column.
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Dow Jones Today: Oil Prices, Treasury Yields
After the market open on Tuesday, the last trading day of February, the Dow Jones Industrial Average fell 0.5% while the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite inch higher in the morning’s action.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.1% and SPDR S&P 500 ETF (SPY) was down 0.2% early Tuesday.
On Monday, the US 10-year Treasury yield settled at 3.92%, close to its highest level since November. The 10-year yield then rose to 3.96% on Tuesday.
Oil prices recovered from Monday’s modest losses, with West Texas Intermediate futures up almost 2% to just over $77 a barrel.
Fight for the stock market rally
On Monday, the Dow Jones Industrial Average was up 0.2% and the S&P 500 was up 0.3%. The tech-heavy Nasdaq Composite gained 0.6%.
Monday’s Big Picture column commented, “Monday’s bounce was little relief for indices that have been in downtrends for almost a month. Until the indices show a clear change in direction, investors need to remain cautious.”
Now is an important time to read IBD’s The Big Picture column amidst the now struggling stock market rally.
Five Dow Jones stocks to buy and watch
Dow Jones Stocks To Buy And Watch: American Express, Cisco, JPMorgan
American Express, featured in this week’s “Stocks Near a Buy Zone” column, is building a huge cup-and-handle base that shows a buy point of 182.25. Shares are just 4% below their buy point as they fell 0.55% on Monday. Upbeat, the stock’s line of relative strength is approaching fresh highs, a particularly positive sign ahead of a potential breakout. AXP stock was up 0.6% Tuesday morning.
Banking giant JPMorgan is range-bound above its flat base buy point of 138.76 after gaining 0.9% on Monday, according to chart analysis by IBD MarketSmith. Stocks are also recovering from their key 50-day moving average. JPM shares were up 0.3% early Tuesday.
JPM stocks are showing a solid 94 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Cisco Systems ended a five-day losing streak up 0.5% on Monday but remains below the buy point of a flat base at 50.81. Stocks are attempting to halt their slide around their 50-day moving average and are about 4% below the entry. CSCO shares are down 0.4% on Tuesday.
4 top growth stocks to buy and watch stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
IBD Leaderboard Watch Palo Alto Networks is building the right side of a base that shows a buy point of 193.01 after last week’s rise of more than 10%. PANW shares rose 0.5% Tuesday morning.
Backstory: Last week, the cybersecurity giant announced strong results for the quarter ended in January, during which earnings hit $1.05 per share, up 81% year over year on revenue jumping 26% to 1.7 billion dollars.
Wingstop is back in the 5% pursuit zone behind a cup-with-handle entry of 169.04, which peaks at 177.49 after recent losses. Investors should wait for signs of support before considering buying shares, especially given the deteriorating overall market conditions. WING stock was up 1% early Tuesday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. International locations include Mexico, Colombia, Panama, Singapore and the UK. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total presence to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Buying Points
Shares of Deere rose 1% on Monday but still closed below its 50-day moving average. Shares are 6% below a buy point of 448.50 on a flat basis. DE shares are down on Tuesday morning.
Backstory: As an industrial pioneer, Deere has shrugged off recession and inflation fears to deliver solid profits. Last year, higher commodity prices made farmers buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker reported a 124% increase in earnings per share on a 32.2% increase in total sales, beating both estimates. Earnings growth accelerated for the second straight quarter.
The builder Toll Brothers builds a mug with a handle that has a buy point of 63.29. Bullishly, the stock is showing relative strength at new highs after Monday’s 1.5% surge. TOL stock holds a solid 95 IBD Composite Rating. Toll Brothers shares were up 0.5% early Tuesday.
Backstory: Last week, luxury homebuilder Toll Brothers beat earnings and sales forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month slide in US existing home prices in January showed signs of slowing.
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Stocks to buy and watch in the stock market rally
These are six top stocks to buy and watch in today’s stock market, including two top Dow Jones stocks.
| Company Name | symbol | Correct purchase point | Type of purchase point |
|---|---|---|---|
| deer | (EN) | 448.50 | flat base |
| Great brothers | (TOL) | 63.29 | Cup with handle |
| Cisco systems | (CSCO) | 50.81 | flat base |
| Palo Alto Networks | (PANW) | 193.01 | consolidation |
| JP Morgan | (JPM) | 138.76 | flat base |
| wing stop | (WING) | 169.04 | Cup with handle |
Source: IBD data as of February 28, 2023
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Tesla stock
Tesla shares rose 5.5% on Monday after the company announced that Gigafactory Berlin is now producing 4,000 Model Y vehicles per week. The global EV giant generally considers 5,000 units per week a target for its factories. At its current pace, the Berlin plant is at a rate of 208,000 vehicles per year.
Despite their strong recovery since Jan. 6, shares are still below the 200-day moving average. This key level is emerging as a potential area of resistance. Shares closed around 47% below their 52-week high on Monday.
Tesla shares appeared to contribute to Monday’s gains, rising 1% Tuesday morning.
Tesla will hold its investor day on Wednesday, with Musk teasing plans to unveil its “Master Plan 3” at the event. Analysts say they have few details, and many doubt there will be any new product announcements. According to Musk, his Master Plan 3 is a “pathway to a fully sustainable energy future for the planet.”
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.8% on Monday, recovering above the support around its 200-day moving average. Shares are about 18% off their 52-week high. Apple shares fell 0.5% on Tuesday.
Microsoft shares remain below their 200-day moving average despite gaining 0.4% on Monday. The stock is down more than 20% from its 52-week high after recent losses. MSFT shares fell 0.4% early Tuesday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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