The Dow Jones industrial average rose on Tuesday as the index posted a four-day advance. Blue chip stocks Home Depot (HD) and Walmart (WMT) earnings were higher following Tuesday’s open. Early trade was generally muted as markets looked ahead to the Fed minutes, with both the Fed’s latest policy meeting and US retail sales coming out on Wednesday.
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Contract manufacturer Factory (FN) rose to an early lead, up more than 10%, after delivering a solid second-quarter report and strong guidance late Monday. Zoom in on video contacts (ZM) fell to the bottom of the Nasdaq 100, down more than 3% after being downgraded by Citi.
Electric vehicle leader Tesla (T.S.L.A) traded up about 1% on Tuesday morning. Elsewhere, Dow Jones Technology Leaders Apple (APL) and Microsoft (MSFT) and then two inches down Today’s stock market Open.
In a healthy stock market environment, Dow Jones stocks Coke (There is) and Merck (MRK) – as well as Albemarle (ALB), Costco (cost), Monolithic Power Systems (MPWR) and Ollie’s Bargain Outlet (Ollie) — are among the best stocks to buy and watch.
Albemarle is a IBD Leaderboard Stock. Albemarle and Costco were featured Near the column of this week’s stock buy zone.
Dow Jones today: Treasury yields, oil prices
Early Tuesday, the Dow Jones Industrial Average was up 0.1%, and the S&P 500 was down 0.1%. The tech-heavy Nasdaq lost 0.4% in morning trade.
in the middle Exchange-traded fundsNasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.4% and the SPDR S&P 500 ETF (espionage) was inching lower in morning trade.
The 10-year Treasury yield rose to 2.81% early Tuesday, down from Monday’s low of 2.79%. The 10-year Treasury yield has rebounded in recent weeks after hitting its lowest level since early April.
Meanwhile, US oil prices erased early losses on Tuesday morning after hitting recent lows on Monday. West Texas Intermediate futures were higher, trading above $89 a barrel.
The minutes of the Federal Reserve’s latest meeting are due out on Wednesday morning. The minutes are expected to hint at the central bank’s thoughts on possible interest-rate hikes at its September meeting.
At the most recent central bank meetingThe Fed offered a 75-basis-point rate hike for the second straight meeting, and Fed Chairman Jerome Powell noted in September that a third such hike “would be appropriate.”
Stock market rally
On Monday, the Nasdaq composite once again outperformed the major indexes. It closed at the highest for the day as it rose 0.6%. It has declined by more than 17% so far in 2022.
Monday’s The Big Picture column “Equity rally showed resilience despite Monday’s good earnings. Indices bounced back to marginally higher after coming under initial pressure amid fresh data.”
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Dow Jones Earnings: Home Depot, Walmart
Home improvement retailer Home Depot announced its second quarter results Early Tuesday. The company earned $5.05 a share on sales of $43.79 billion, topping analyst estimates. Shares of HD rose more than 1% in morning trade.
Discount retailer Walmart extended its winning streak to seven sessions on Monday, rising 0.3%. Walmart’s second quarter earnings Estimated $1.77 per share on revenue of $152.9 billion. WMT shares rose 5% after the open.
Five Dow Jones Stocks to Watch Now
Dow Jones Stocks to Watch: Coca-Cola, Merck
Dow Jones Soda Company Coca-Cola is forming a flat base with a buy point of 67.30. A handle entry also plays at 65.14. Shares bounced back from their 50-day line on Monday’s 1.3% rally, nearing an early entry. Stocks rose early Tuesday.
Merck is also forming a flat base, showing a 95.82 buy point. Shares are trying to hold above their 50-day line amid Monday’s 0.5% decline. IBD MarketSmith Chart analysis. Merck shares fell 0.5% on Tuesday.
Share of MRK Showing a solid 94 out of a perfect 99 IBD Joint Assessment, for one IBD Stock Checkout. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Best Growth Stocks to Buy and WatchRent stock market rally
Top stocks to watch: Albemarle, Costco, Monolithic, Ollie’s
IBD Leaderboard The stock and lithium producer Albemarle are in buy range following last Friday’s breakout of the big cup with a handle of 273.78. Point of purchase. 5% buy zone goes up to 287.47. Earlier last week, the stock topped the minor cup with handle at 250.25 buy point. Shares rose 0.9% on Monday, extending their winning streak to four sessions. The stock was up 0.2% on Tuesday morning.
Retail giant Costco forms a cup with a handle showing a buy point of 552.81. The stock rose 1.6% on Monday and is about 3% away from a recent entry. Shares rose 1.4% in early trading Tuesday.
Latest IBD stock of the day Monolithic Power Systems added a handle to a cup base last week, moving the perfect buy point from 580.10 to 541.49. Meanwhile, shares are above the 514.80 entry. The stock fell 1% on Tuesday.
Ollie’s Bargain Outlet is recovering from that 10 week line – An important support level – placing the best discount seller in a new buying zone. Stocks also carve a Handle after a large cup base, placing a recent buy point at 72.37. Current price action is about 10% away from that entry. Shares rose 1.3% Tuesday morning.
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares rose 3.1% on Monday, closing at their highest level since May 4. Shares are trying to resolve resistance around their 200-day line again, which is a key level to watch. Tesla shares rose nearly 1% Tuesday morning.
The stock is about 25% off its 52-week high. A 3-for-1 stock split will occur on August 24.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones StocksApple shares rose 0.6% on Monday, and the stock remained flat A cup continues to form the right side of the base It has a buy point of 179.71. Another explanation could be a big double bottom that extends into January. Either way, the point of purchase remains the same. Consider creating a possible handle and providing minimal entry.
Happily, the stock’s relative strength line is already at new highs, indicating the performance of the larger stock market. Shares were down 0.4% Tuesday morning.
Microsoft gained another 0.5% on Monday, ending just shy of the long-term 200-day line, a key resistance area to watch. The stock was down 0.4% in early trading Tuesday.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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