Dow Jones futures fell ahead of economic data; Tesla shares fall on target price drop

Dow Jones futures fell on Tuesday morning, as global markets struggled after a price drop. The Bank of Japan’s sudden monetary policy change. The Dow Jones Industrial Average is on a four-day losing streak, with Walt Disney and Nike leading the decline. And Tesla stock saw its price target cut at multiple analyst firms on Tuesday.


Economic data to be released on Tuesday includes consumer confidence and existing home sales. The December consumer confidence index is expected to edged higher to 101.0 from November’s 100.2, Meanwhile, Econoday’s consensus figure shows current home sales. November’s drop further, to an annualized rate of 4.20 million from October’s 4.43 million. Both readings will be published at 10 a.m. ET.

heico (HEI) rose 1.5% pre-market on Tuesday after the company posted better-than-expected quarterly earnings and sales results. General factory (geographic information system) fell 1.5% despite beating Wall Street’s sales and earnings targets.

Other earnings reports this week include Micro technology (MU) and Dow Jones stock Nike (NKE).

Steel momentum (STLD) will join the S&P 500 and Microcomputer (SMCI) will join the S&P MidCap 400, effective before the market opens on Thursday, according to the S&P Dow Jones Index. Steel Dynamics was up 0.7 percent, while SMCI stock was up 7% in early morning trading.

electric car giant Tesla (TSLA) fell 1% on Tuesday morning after multiple targeted price drops from Daiwa, Evercore ISI and Mizuho. Dow Jones Technology Leader Apple (AAPL) and Microsoft (MSFT) higher than before stock market today open.

IBD Rankings Share Neurobiological Science (NBIX), KLA (KLAC), O’Reilly . Auto Parts (ORLY) and Flowers for rent (URI) — as well as the name of Dow Jones caterpillars (CAT), warehouse at home (HD) and UnitedHealth Corporation (UNH) — among the top stocks to consider on an investor’s watchlist.

Neurocrine and United Rentals are IBD Rankings share. UnitedHealth has been featured in the last week Stocks near the Buy Zone column. Recent Caterpillar and United Rentals IBD shares of the day companies.

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Dow Jones today: Oil prices, Treasury yields

Before Tuesday’s opening bell, Dow Jones futures were down 0.1% from fair value. S&P 500 futures lost 0.2%. Tech-heavy Nasdaq 100 futures were down 0.5% in morning trade.

U.S. trade activity largely resisted the selling that devastated markets across Asia on Monday, after the Bank of Japan doubled its 10-year bond yield cap to 5%. . The move created ripples in global bond markets and sent the yen up sharply. Tokyo’s Nikkei 225 index fell 2.6%, while other leading Asian markets ended lower.

European markets recovered from an early bump and turned mixed near the middle of the session. US Treasuries fell, sending 10-year yields 9 basis points higher to 3.66%, signaling a third consecutive rally.

Between us exchange-traded fundsNasdaq 100 Invesco QQQ Trust tracker (National Assembly member) fell 0.3% and the SPDR S&P 500 ETF (spy) fell 0.1% early Tuesday.

Meanwhile, US oil prices traded up less than 1% on Tuesday, but are still on track to add to Monday’s gains. West Texas Intermediate futures rose to nearly $76 a barrel in morning trading. Natural gas prices fell more than 5% in the first half, heading for a third straight drop after falling 11% on Monday.

Stock market recovers under pressure

On Monday, technology and small-cap stocks once again underperformed, sending the Nasdaq composite down 1.5% and the Russell 2000 index 1.4%. The Dow Jones Industrial Average was the best gainer, down just 0.5%. The S&P 500 lost 0.8%, closing below the 50-day moving average for the second day in a row.

Monday’s The Big Picture Category commented: “The legendary Santa Claus rally represents the period from Christmas to the first two trading days of 2023. The Dow Jones Industrial Average is up 1.38% on average during this period since since 1950 while the S&P 500 is up 1.32% on average, according to data compiled by Dow Jones Market Data.Both indexes are trading higher about 78% of the time. suggests buyers are willing to seize the falling knives at year’s end, but skepticism could be high enough to spark some short selling.”

Now is a great time to read IBD . Big Picture Column in the context of stock market volatility.

Five Dow Jones stocks to buy and watch now

Dow Jones Stocks to Watch: Caterpillar, Home Depot, UnitedHealth

Dow Jones member Caterpillar continues to trade near a 239.95 buy point in a flat base, based on IBD MarketSmith . Pattern Recognition, after Monday’s slight decline. The stock has found support at the stock’s 21-day exponential moving average and the stock’s relative strength line is heading to new highs. CAT stock inched higher on Tuesday.

CAT stock shows 97 strong out of perfect 99 IBD Composite Ratingfollow Check out IBD stock.

Home improvement retailer Home Depot is about 4% below a cup base’s 329.77 buy point after reversing last week’s breakout move. HD stock traded 0.5% lower Tuesday morning after Credit Suisse downgraded the stock from good to neutral, with the main risk being a slowing housing market.

Healthcare giant UnitedHealth Group is looking for a flat base model that has a buy point of 558.20. Shares are about 6% away from the latest entry after giving up support near the 50-day line last week. UNH stock is currently trying to stem the recent slide around the 200-day line. Shares added 0.3% early Tuesday.

Top 4 growth stocks to watch in the near futurerand the stock market recovered

Top stocks to watch: KLA, Neurocrine, O’Reilly, United Rentals

Chip gear leader KLA has mostly held up amid the market weakness and is about 2% below cup-with-handle’s 392.60 entry following Monday’s modest drop. KLA stock inched lower ahead of Tuesday’s marketing.

IBD Rankings Neurocrine stock is trying to find support at the 50-day level amid two-week losses. A strong bounce would be bullish for the stock’s immediate outlook and potentially lead to the formation of a new base. Meanwhile, a strong breach could mean the stock needs more consolidation. NBIX stock was unchanged on Tuesday.

O’Reilly Auto Parts is attempting to find support at the 50-day moving average this week and sustains it just above a flat base of 750.98. A major bounce off the 50-day line could provide the next entry, but the market’s bulls are currently under pressure, which increases the risk of buying the stock. ORLY stock is inactive on Tuesday.

United Rentals is still just below the 368.04 point of purchase in one cup with handle sample. The stock is about 5% below the buy point and further weakness will trigger the 7%-8% loss rule. URI shares unchanged on Tuesday.

stocks to watch

These are the top five stocks to watch in today’s stock market, including the top three Dow Jones stocks.

Company name Icon Exact point of purchase base type
KLA (KLAC) 392.60 cup with handle
Flowers for rent (URI) 368.04 cup with handle
caterpillars (CAT) 239.95 flat sole
warehouse at home (HD) 329.77 cup with handle
UnitedHealth (UNH) 558.20 flat sole
Source: IBD Data as of December 19, 2022

Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live

Tesla shares

Tesla shares fell as much as 2.9% on Monday before reducing losses to just 0.2%. TSLA stock hit a new 52-week low at 145.82. Shares were down 1% Tuesday morning, as shares were slashed with price targets at Daiwa, Evercore ISI and Mizuho.

Daiwa lowered its target from 240 to 177, partly due to “Twitter distraction”. Evercore cut its target from 300 to 200, citing weaker demand. And Mizuho lowered its target from 330 to 285 due to the challenging global auto market.

On Monday, TSLA stock hit its lowest level since November 2020. Shares closed down about 63% from their 52-week high.

Leading the Dow Jones: Apple, Microsoft

Between Dow Jones stock, Apple stock sold off 1.6 percent on Monday, hitting its lowest level since mid-June. AAPL stock just ended at a 52-week low, set on June 16 at 129.04. Shares are down about 27% from their 52-week high. Shares traded down 0.4% on Tuesday.

Microsoft fell 1.7% on Monday, as shares sought support around their 50-day line amid a three-day losing streak. The software giant is still down about 30% from a 52-week high. MSFT stock fell 0.5% early 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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