The Dow Jones Industrial Average fell 175 points on Tuesday, amid the advance release of economic data and the final trading session of February. Retail giant Target (TGT) rose 3% as earnings fell less than expected, but chief executive Brian Cornell warned of a “very challenging environment”. And You’re here (TSLA) reversed lower, falling 0.5% ahead of Wednesday’s investor day.
A slew of economic data was due for release on Tuesday, including two housing reports – the Case-Shiller House Price Index and the Federal Housing Finance Agency House Price Index. The Case-Shiller index was 5.8% higher in December than the previous December, above estimates of 5.3%. The FHFA index fell 0.1% in December, less than the expected decline of 0.3%.
Chicago’s PMI unexpectedly fell to 43.6 in February, against estimates that called for an increase to 45.0 from 44.3 in January. And the consumer confidence index fell to 102.9 in February, against an expected rise to 108.5 from 107.1 in January.
On the earnings side, western oil (OXY) missed its fourth-quarter profit targets on Monday night, sparking a 1.6% rise in morning trade. The Warren Buffett-backed energy giant reported a 9% drop in earnings to $1.61 per share in the period, while revenue rose 4% to $8.22 billion. On the year, earnings jumped 267% to $9.35 per share while sales jumped 43% to $37.1 billion. Occidental also increased its dividend and announced a $3 billion share buyback plan.
Somewhere else, Advanced auto parts (PA), Auto area (AVOID), Shift4 Payments (FOUR), Working day (WDAY) and Focus on video communications (ZM) were earnings drivers.
AAP shares rose nearly 4% in early trade, while AutoZone shares lost less than 1%. FOUR stock jumped 9%, while Workday stock rose slightly. Finally, Zoom stock jumped 3% in early morning trading.
Other notable companies reporting earnings this week are C3.ai (AI), Wholesale Costco (COST), dollar tree (DLTR), Kohls (KSS), Lowe’s (WEAK), Macy’s (M), Ross Stores (ROST) and Selling power (CRM).
stock market today
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded slightly lower after the stock market opened.
IBD Ranking Watchlist Stock Palo Alto Networks (PANW), Deere (OF), Toll Brothers (To 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, with recent stock market weakness.
Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent Stock Of The Day IBD pick. Cisco Systems and Wingstop were featured in the Stocks Near A Buy Zone column last week.
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Dow Jones Today: Oil Price, Treasury Yields
After Tuesday’s market open, the last trading day of February, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 was down 0.2%. The tech-heavy Nasdaq composite edged higher in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.1% and the SPDR S&P 500 ETF (SPY) fell 0.2% early Tuesday.
On Monday, the 10-year US Treasury yield stood at 3.92%, holding near its highest level since November. Then on Tuesday, the 10-year yield rose to 3.96%.
Oil prices rebounded from modest losses on Monday, with West Texas Intermediate futures rising nearly 2% to just over $77 a barrel.
Stock market rally struggles
On Monday, the Dow Jones Industrial Average rose 0.2% and the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite rose 0.6%.
Monday’s Big Picture column commented: “Monday’s rebound brought little relief to indices which have been trending lower in price for nearly a month. Until indices showed a definite change in direction, investors should remain cautious.”
Now is an important time to read IBD’s The Big Picture column amid the struggling stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: American Express, Cisco, JPMorgan
Featured in this week’s Stocks Near A Buy Zone column, American Express is building a giant mug base with handle that shows a buy point of 182.25. Shares are only 4% below their buy point, as they fell 0.55% on Monday. On the upside, the stock’s relative strength line is approaching new highs, a particularly positive sign before a possible breakout. AXP shares rose 0.6% on Tuesday morning.
Banking giant JPMorgan is in the buy range above its fixed base buy point of 138.76 after Monday’s 0.9% gain, according to IBD MarketSmith’s chart analysis. Stocks are also rebounding from their main 50-day moving average. Shares of JPM rose 0.3% early Tuesday.
JPM stock is posting a solid 94 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. The composite rating is designed to help investors easily find the highest growth stocks.
Cisco Systems ended a five-day losing streak with a 0.5% rise on Monday, but remains below the buy point of 50.81 on a flat basis. Stocks are trying to stop their slide around their 50-day line and are around 4% below the entry. CSCO shares edged down 0.4% on Tuesday.
4 best growth stocks to buy and watch in the market Stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
Palo Alto Networks is building the right side of a base that has a buy point of 193.01 following last week’s more than 10% jump. PANW stock rose 0.5% on Tuesday morning.
Pass: Last week, the cybersecurity giant announced strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, with an increase 26% of its revenue to $1.7 billion.
Wingstop is back in the 5% chase zone after a 169.04 cup entry with a handle that peaks at 177.49 after recent losses. Investors should wait for signs of support before considering buying stocks, especially amid deteriorating general market conditions. WING stock rose 1% early Tuesday.
Pass: The Dallas-based restaurant chain has more than 1,900 locations in the United States and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Purchase Points
Deere shares climbed 1% on Monday but still closed below their 50-day line. The shares are 6% below a buy point of 448.50 in a flat basis. DE stock fell slightly on Tuesday morning.
Pass: An industry gauge, Deere shrugged off recession and inflation fears to generate strong earnings. Last year, rising commodity prices allowed farmers to buy both new and improved machinery. In the first fiscal quarter ended Jan. 29, the tractor maker posted a 124% increase in earnings per share on a 32.2% increase in total revenue, both beating estimates. Earnings growth accelerated for a second straight quarter.
Homebuilder Toll Brothers builds a mug base with handle that boasts a buy point of 63.29. On the upside, the stock shows a relative strength line to new highs after Monday’s 1.5% rise. The TOL stock is posting a strong composite rating of 95 IBD. Shares of Toll Brothers rose 0.5% early Tuesday.
Pass: Last week, luxury homemaker Toll Brothers beat profit and revenue forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month decline in US existing home prices showed signs of slowing in January.
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Stocks to buy and watch in the stock market rally
These are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Point of purchase type|
|Toll Brothers||(TOL)||63.29||Mug with handle|
|Cisco Systems||(CSCO)||50.81||Flat bottom|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|JP Morgan||(JMP)||138.76||Flat bottom|
|wing stop||(WING)||169.04||Mug with handle|
Source: IBD data as of February 28, 2023
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Tesla stock rose 5.5% on Monday after the company announced that Gigafactory Berlin was now producing 4,000 Model Y vehicles per week. The global electric vehicle giant generally considers 5,000 units per week to be the goal of its factories. At its current rate, the Berlin plant is in production for 208,000 vehicles per year.
Despite their strong rebound since Jan. 6, stocks are still below the 200-day line. This key level appears as a potential resistance zone. Shares closed Monday about 47% off their 52-week high.
Tesla stock appeared to add to Monday’s gains, rising 1% on Tuesday morning.
Tesla will hold its Investor Day on Wednesday, with Musk teasing his intention to present his “Master Plan 3” at the event. Analysts say they know few details and many doubt there will be any new product announcements. Musk says his Blueprint 3 is about a “pathway to a fully sustainable energy future for Earth.”
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.8% on Monday, bouncing above support around their 200-day line. The shares are around 18% off their 52-week high. Apple shares fell 0.5% on Tuesday.
Microsoft shares remain below their 200-day line despite Monday’s 0.4% gain. The stock is more than 20% off its 52-week high after recent losses. MSFT stock was down 0.4% early Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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