The Dow Jones Industrial Average dropped 300 points Tuesday morning on rising U.S.-China tensions, as House Speaker Nancy Pelosi heads to Taiwan. Machinery giant Caterpillar slid on weak revenue results, while Uber stock surged more than 14% on better-than-expected sales and being cash-flow positive for the first time.
ANET shares jumped 4% in morning trade on strong second-quarter results. CAT stock slid more than 4%. CF stock rose more than 2%. Devon shares inched higher. Diamondback gained less than 1%. And Mosaic was down nearly 4%.
In the strengthening stock market environment, Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) — as well as Cheniere Energy (LNG), Exxon Mobil (XOM), Quanta Services (PWR), Ulta Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
Dow Jones Today: Treasury Yields, Oil Prices, Pelosi Visit
After Tuesday’s open, the Dow Jones Industrial Average dropped 0.9%, and the S&P 500 moved down 0.6%. The tech-heavy Nasdaq composite lost 0.4% in morning trade.
The 10-year Treasury yield ticked lower to 2.57% Tuesday morning, threatening to fall for sixth-straight session. The 10-year Treasury yield is at its lowest level since early April. Meanwhile, U.S. oil prices slipped, as West Texas Intermediate futures fell a fraction to below $94 a barrel.
House Speaker Pelosi is set to arrive in Taiwan on Tuesday and plans to meet with Taiwanese government officials. Pelosi would become the first House speaker to visit Taiwan since 1997. Beijing, which claims Taiwan as part of its territory, has warned Pelosi not to do so and has threatened to take action should her visit continue.
Stock Market Rally
On Monday, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 moved down 0.3%. The tech-heavy Nasdaq composite declined 0.2%, ending a three-day win streak.
Monday’s The Big Picture column commented, “Overall, losses were mild considering the stock market enjoyed its best month since late 2020 in July. Nevertheless, investors should continue to be nimble and exercise caution in case this is yet another bear-market bounce.”
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 broad range of growth stock lists, such as Leaderboard and SwingTrader.
Dow Jones Stocks To Watch: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a 182.50 buy point. Be on the lookout for a potential handle to offer a lower entry. Chevron stock traded down a fraction Tuesday.
Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base’s 518.80 buy point despite Monday’s 1.3% loss, according to IBD MarketSmith chart analysis. Shares inched higher Tuesday.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Top Stocks To Watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after crossing a trendline entry around 140. Now the stock is trying to break out past a double-bottom’s 146.45 buy point. The relative strength line just hit fresh highs, a positive sign. Shares were up 0.5% Tuesday.
Friday’s IBD Stock Of The Day Exxon Mobil reclaimed the 50-day line last week and topped an aggressive early entry around 93.24. But the energy giant gave up some ground Monday, falling 2.5%. Meanwhile, a cup-base entry at 105.67 is also in play. XOM stock gained 0.5% Tuesday morning.
IBD Leaderboard stock Quanta Services is back at a cup-with-handle base’s 138.56 buy point after Monday’s slight loss, according to IBD MarketSmith chart analysis. Quanta earnings are due on Thursday. The stock was down 0.1% Tuesday.
Ulta Beauty is building a flat base with a 429.58 buy point but is finding it hard to decisively retake its 50-day line amid Monday’s 1.4% gain. The base comes in the wake of a failed breakout past a cup with handle’s 426.93 entry in June. ULTA shares lost 0.5% early Tuesday.
Vertex Pharmaceuticals gave up its cup-with-handle’s 279.23 buy point and fell further below the 50-day line during Monday’s 2.35% decline. The company will report earnings on Thursday. Vertex shares rose 1% Tuesday.
Tesla stock slashed gains to less than 0.1% Monday but still extended its win streak to four sessions. Shares are at their highest level since early May but are finding resistance around their 200-day line, which is a key level to watch.
Shares reversed from early losses to gain 0.5% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.6% Monday, ending a three-day win streak. Last week, the stock regained its 200-day line for the first time since May 5. Apple shares declined 0.6% Tuesday morning.
Microsoft dropped 1% Monday but remains above its 50-day line. Still, the software giant is still ranging below its long-term, 200-day line. The stock closed about 20% off its 52-week high. Microsoft moved down 0.9% 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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