The Dow Jones Industrial Average dropped Tuesday morning, while tech stocks dived, as Snap (SNAP) plunged 39% after warning that its second-quarter profit and revenue would be below the low end of its own previous outlook. Meanwhile, Zoom Video (ZM) stock climbed around 5% after reporting better-than-expected first-quarter results late Monday.
Along with Zoom, Advance Auto Parts (AAP), Heico (HEI) and reported late Monday, while Abercrombie & Fitch (ANF), AutoZone (AZO), Best Buy (BBY) and Ralph Lauren (RL) are among the companies reporting Tuesday morning.
AAP shares fell around 4% while Heico stock was down nearly 2%. AutoZone shares rallied 2% as Abercrombie stock dived 30%. And Best Buy stock rose 2.8%. And Ralph Lauren fell more than 1% in early trade.
Electric-vehicle giant Tesla (TSLA) traded down 4% Tuesday morning. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) lost 1.15% and 1.1%, respectively, in today’s stock market.
As the stock market rally continues to struggle, Dow Jones leaders Chevron (CVX) and Merck (MRK) – along with Livent (LTHM), Exxon Mobile (XOM), Eli Lilly (LLY), and World Wrestling Entertainment (WWE) – are among IBD’s top stocks to watch for Tuesday.
Microsoft is an IBD Leaderboard stock. Merck is on IBD SwingTrader. Livent and World Wrestling Entertainment were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After Tuesday’s open, the Dow Jones Industrial Average moved down 0.75%, and the S&P 500 lost 1.4%. The tech-heavy Nasdaq dived 2.7% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 1.9%. The SPDR S&P 500 ETF (SPY) fell 1.1%.
The 10-year Treasury yield ticked down to 2.81% Tuesday morning after closing Monday at 2.85%. On Friday, the 10-year Treasury yield closed at its lowest level since April 26. Meanwhile, US oil prices climbed less than 1%, with West Texas Intermediate crude trading above $ 110 a barrel.
Struggling Stock Market Rally
The major stock indexes posted solid gains Monday. Monday’s action was a step in the right direction following last week’s heavy selling, but it wasn’t enough to switch the market status back into a confirmed uptrend.
Monday’s The Big Picture column commented, “Notably, volume was significantly lower than on Friday, off 17% on the Nasdaq. In the prior session, trading may have gotten a boost from equity and index options that expired the same day. Even then, the slower activity suggested that institutional investors held back from committing much capital to the market rebound. “
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. Shares rebounded from their 50-day line Monday, rising 2.3%. CVX shares traded down a fraction Tuesday.
CVX stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Merck, a Dow Jones and IBD SwingTrader stock, is trading towards the top of a buy range above a cup-with-handle’s 89.58 buy point, as shares gained 0.3% Monday. The 5% buy area goes up to 94.06. MRK shares were slightly higher Tuesday morning.
The stock’s relative strength line hit more new highs Friday, a strong indicator of stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Watch: Livent, Exxon, Eli Lilly, WWE
Lithium producer and Tesla supplier Livent is approaching an early buy point at 29.68, rising 3.7% Monday, according to IBD MarketSmith chart analysis. Meanwhile, Livent stock continues to rally up the right side of a cup base that has a conventional entry at 33.14. Keep an eye out for a potential handle to offer a more risk-optimal entry. LTHM shares dropped nearly 1% Tuesday morning, following a raised profit outlook from lithium giant Albemarle (ALB).
Energy giant Exxon Mobil is at the top of a buy range above a cup-with-handle’s 89.90 buy point, rising 2.2% Monday. Shares are at the top of the 5% buy area that goes up to 94.40. XOM shares fell a fraction Tuesday.
Pharmaceutical giant Eli Lilly rose 1.25% Monday. Shares of the IBD Leaderboard stock are finding support around their 50-day moving average line and are approaching a flat base’s 314.10 buy point. An early buy trigger at 309.54 is also in play. Eli Lilly shares were flat Tuesday.
World Wrestling Entertainment is one of the top stocks to watch after it closed Monday within striking distance of a flat base’s 63.81 buy point. WWE shares rallied 1.3% Monday. extending a win streak to five sessions. The stock was down 1% Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock rose 1.7% Monday, recovering a small part of Friday’s 6.4% tumble and snapping a three-day losing streak. Shares dropped 4% Tuesday morning, threatening to give back Monday’s gains. The stock is sharply below its 50- and 200-day moving averages.
Tesla stock traded as high as 1,243.49 on Nov. 4 and is more than 45% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 4% Monday. The stock remains far below its long-term, 200-day line. AAPL stock moved down 1.15% Tuesday.
Software leader Microsoft gained 3.2% Monday, but remains sharply below its 50- and 200-day lines. The stock closed more than 25% off its 52-week high. MSFT shares dropped 1.1% Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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