The Dow Jones Industrial Average fell again as the last Fed meeting began. Tesla (TSLA) CEO Elon Musk to make one Twitter (TWTR) postpone this week. Apple (AAPL) rose after it was announced it had signed a deal with Major League Soccer.
X
Meanwhile, a trio of stocks are eyeing entries. HealthEquity (HQY) tested a buy point Quanta Services (PWR) and Ramaco Resources (METC) build bullish bases.
Volume was down on both the Nasdaq and the New York Stock Exchange, according to preliminary data.
Meanwhile, the yield on the benchmark 10-year Treasury rose 10 basis points to 3.47%. West Texas Intermediate crude gave up early gains and slipped more than 2% to trade at just above $118 a barrel.
Yields rose after the latest PPI data was released by the Labor Department. It showed producer prices rose 0.8% in May after rising 0.5% in April, in line with Econoday estimates. Producer inflation rose 10.8% year-on-year, slightly below the 11% estimate.
It comes as the Federal Reserve begins its latest two-day monetary policy meeting on Tuesday. The likelihood of a three quarter point hike in the fed funds rate has increased this week on the back of the latest inflation data.
Nasdaq loses gains as stock market splits
Of the major indices, the Nasdaq performed best. It recovered late and closed down 0.2%. Pinduo (PDD) was the top performer, up 12%.
The S&P 500 closed lows as it lost 0.4%. Swimming pool (POOL) was a major laggard, down 5.2%.
S&P 500 sectors were mostly negative. Only technology and energy made progress. Consumer staples and health care were the worst performers.
Small caps were bitten by the bears, with the Russell 2000 down 0.4%.
However, growth stocks managed to feed on the bears. The innovator IBD 50 ETF (FFTY), a trailblazer for growth stocks, ended the session up 0.8%.
Dow Jones Today: Apple Stock Gains Amid MLS Deal
The Dow Jones Industrial Average lagged the other major indices. It lost about 150 points or 0.5%.
Apple stock was one of the components that made the best progress, although its gain was small. It ended the day up 0.7%.
It comes after the company announced a 10-year deal with Major League Soccer to broadcast games on its streaming service. It’s another step into the sport after the company began streaming Major League Baseball games earlier this year.
JPMorgan also reiterated its overweight stance on Apple stock, with the company saying it was bullish on the outlook 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 today as it rose 5.4%. Procter & Gamble (PG) was the biggest laggard, down 3.1%.
Elon Musk holds Twitter meeting
TWTR stock is higher on Tuesday. It comes after it was revealed that Tesla CEO Elon Musk, who is trying to buy the social media company, will hold a meeting with Twitter officials on Thursday.
The eccentric executive will answer pre-submitted employee questions at a virtual meeting on Thursday, according to CNN.
Uncertainty surrounds Musk’s proposed $44 billion acquisition of the company.
The Tesla boss has said the deal is “on hold” while he waits to hear more about the number of bots and fake accounts on the social media platform.
Twitter stock ended the day well below its highs but was still up 0.5%. It remains rooted below its major moving averages.
Tesla stock also gave up some gains but still closed down 2.4%. The former leaderboard stock is now far from its 50-day moving average.
TSLA also remains rooted well below its current consolidation entry of 1,208.10, MarketSmith analysis shows.
Market anticipates a big Fed rate hike as yields continue to rise
Outside the Dow Jones: 3 Stocks Eye entries
HealthEquity entered its buy range above a narrow-handled cup with an early entry at 66.23. While the grip keeps the spirit of a definitive retreat in base, it doesn’t meet the 5-day minimum in terms of length. So 72.80 could serve as an ideal buy point, or 10 cents above the new cup’s left high.
Stocks break away from their 50-day moving average. While overall performance is good, earnings aren’t ideal. It currently has an EPS rating of 60 out of 99.
The health-savings account company has seen its earnings per share fall in recent quarters, but a rebound is expected for fiscal 2024, which ends in January this year. Wall Street sees earnings up 31% to $1.68 per share.
A few stocks are also worth adding to the watch list after establishing new bullish patterns.
Quanta Services has produced a cup-and-handle base with a buy point of 138.56. Stocks found support at the 50-day moving average amid broader weakness.
The relative strength line has made new highs, an encouraging sign. The company has posted three consecutive quarters of accelerated EPS and revenue growth. His encouraging action earned him a spot on Tuesday’s leaderboard watchlist.
Energy remains a hot topic and coal stock Ramaco Resources formed a cup basis with a potential buy point at 21.10.
Stocks recaptured their 50-day moving average last week for the first time since April. The coal industry group currently tops the 197 IBD industry groups in terms of six-month relative performance.
Analysts expect full-year earnings to skyrocket 559% to $5.93 per share in 2022. Big Money has been buying up the stock for the past few weeks, according to MarketSmith data.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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