Stocks rise after key inflation report

The Dow Jones Industrial Average rose Tuesday morning as the market tipped for a modest recovery after Monday’s stock market crash. More inflation data was released with the Labor Department’s Producer Price Index early Tuesday, while the much-anticipated two-day Federal Reserve meeting is also set to begin.


oracle (ORCL) reported gains after the close on Monday. Oracle shares rose 12% in morning trade after the company reported better-than-expected earnings and sales results.

Amazon (AMZN) and China-based stocks supported the Nasdaq. Amazon rose 1% and was hoping for a sell-off within five days after JPMorgan reiterated its overweight rating and 200 price target. Among ETFs that track China-domiciled issues, KraneShares CSI China Internet ETF (KWEB) is up 3% and iShares MSCI China ETF (MCHI) is up 2% in early trade.

Giant of electric vehicles Tesla (TSLA) reversed almost 1% lower on Tuesday. Chief Executive Elon Musk confirmed the release of full self-driving software in two weeks. Elsewhere, the technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) erased early gains after the market open today.

Amid a deepening stock market correction, the Dow Jones leads rafters (CVX), as well Carlisle (CSL), HealthEquity (HQY), Northrop Grumman (NOK) and world wrestling entertainment (WWE), are among IBD’s top stocks to watch on Tuesday.

World Wrestling Entertainment is an IBD leaderboard stock. And WWE was featured in this week’s ‘Stocks Near a Buy Zone’ column.

Dow Jones Today: Treasury Yields, Oil Prices, Fed Meeting, Inflation

After Tuesday’s open, the Dow Jones Industrial Average was up 0.1% and the S&P 500 was flat. The tech-heavy Nasdaq Composite slipped 0.2% in morning trade.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.1%. The SPDR S&P 500 ETF (SPY) is up 0.15% in early trade.

The 10-year Treasury yield slipped to 3.35% Tuesday morning after rising to 3.36% on Monday, its highest level since April 2011. Meanwhile, US oil prices remain near recent highs, with West Texas Intermediate above $121 a barrel is trading. In early March, WTI briefly peaked at over $130 a barrel.

Labor Department data 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. The producer price index is a measure of price-setting power based on the selling prices that domestic producers receive for their production.

The Fed will begin its final two-day monetary policy meeting on Tuesday and the central bank is widely believed to hike interest rates by half a percentage point on Wednesday. But expectations that the Fed will be forced to become even more aggressive this year have been rising since Friday’s hot inflation report.

Stock market sell-off

The stock market sold off on Monday as the major stock indexes ended heavy losses and started the week lower.

Monday’s The Big Picture column commented: “After the indices gapped down at the open, they remained weak until the close. The four-day losing streak in the main indices is now the biggest since March 2020, according to Dow Jones Market Data. The steep decline rivals this year’s Covid market crash. That being said, we’ve been in a market downturn for at least five months this time around.”

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Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch right now

Dow Jones Stocks To Watch: Chevron, Merck, Travelers

Dow Jones leader and energy giant Chevron gave up the buy point of its flat base of 174.86 after falling 4.6% on Monday, according to chart analysis by IBD MarketSmith. CVX stock has a perfect IBD Composite Rating of 99 according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics. CVX shares were up 1.5% Tuesday morning.

note (MRK), a Dow Jones and IBD big cap 20 stock, fell further below the cup and handle buy point of 89.58 on Monday as shares fell another 2.5%. The stock gave up support around its key 50-day moving average on Friday, which is a sell signal. MRK shares were slightly lower on Tuesday morning.

insurance giant traveler (TRV) continues to build a flat base with a buy point of 188.08. Shares remain below their 50-day moving average after falling 0.9% on Monday. Travelers shares were up 0.4% early Tuesday.

Two top growth stocks to watchrightent stock market correction

Stocks to watch: Carlisle, HealthEquity, Northrop, WWE

IBD share of the day Carlisle shows a flat basis with a buy point of 275.23, although the stock fell 4.6% on Monday to break its 50-day moving average. Carlisle shares fell 0.4% on Tuesday morning.

HealthEquity records a mug with a handle buying point at 66.23 as shares tumbled 0.9% higher on Monday. The stock is finding support around its key 50-day moving average and is down just 2% from its most recent entry. Remember that the weak market environment should keep you on the sidelines. Shares were up 1.1% on Tuesday morning.

Northrop Grumman is attempting to find much-needed support at its 50-day moving average, but remains about 3% below its cup-with-henkel buy point of 477.36. NOC shares edged higher on Tuesday.

IBD leaderboard stock World Wrestling Entertainment is testing the buy point of a flat base of 63.81, according to IBD MarketSmith chart analysis as WWE shares surged higher on Monday. On May 25, the stock saw a strong breakout past the entry. But shares are just above the latest entry in the new wave of market selling. WWE shares are up 0.5% on Tuesday.

According to leaderboard comment, the relative strength line for WWE stock is at all-time highs and has gained ground since January. The base is the first level, a bonus for the chart.

Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live

Tesla stock

Tesla shares slipped 7.1% on Monday, contributing to Friday’s 3.1% drop. Shares threatened to add to those losses, trading nearly 1% lower as of Tuesday morning.

The stock is still well below its 50-day and 200-day moving averages. Tesla shares traded as low as 1,243.49 on Nov. 4. Shares are about 48% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares sold 3.8% Monday, hitting its lowest level since June 2021. The stock is well below its 200-day long-term moving average and is about 28% off its 52 -week high. AAPL stock traded flat on Tuesday as Deutsche Bank kept its buy rating but lowered its price target to 175 from 200.

Leading software provider Microsoft shed 4.2% on Monday and remains well below its 50- and 200-day moving averages. The stock closed more than 30% below its 52-week high. MSFT shares were flat on Tuesday.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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