Dow Jones futures slashed losses Tuesday morning, propped by oil and energy issues surging as Europe rolled out sanctions in response to Russian President Vladimir Putin moving to annex two Ukrainian breakaway regions. Chevron led the Dow industrials. Fertilizer maker CF Industries and Marathon Oil paced the S&P 500. Home Depot and Macy’s were key earnings movers Tuesday, while Diamondback Energy, Matador Resources and Palo Alto Networks will report earnings after the stock market closes.
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Among the Dow Jones leaders, Apple (AAPL) lost 0.8% and Microsoft (MSFT) traded down 0.7% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, is still in buy range following a recent breakout.
CF Industries (CF) bolted 4.6% higher in premarket action. The Deerfield, Ill.-based company stands to benefit from natural gas input prices driven higher for European producers by the Ukraine conflict. Oil stocks held all 19 of the other 20 largest premarket gains on the S&P 500.
Electric-vehicle leader Tesla (TSLA) dropped more than 2% premarket Tuesday, threatening to extend a losing streak to three sessions.
Amid a volatile stock market rally, Anthem (ANTM), Northern Oil & Gas (NOG), Deere (DE) and Wyndham Hotels & Resorts (WH) are among Tuesday’s top stocks to watch. All four stocks are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Wyndham was a recent IBD Stock Of The Day.
Dow Jones Today: Russia-Ukraine Crisis
Ahead of the stock market open Tuesday, Dow Jones futures traded down 0.4% vs. fair value, while S&P 500 futures pared early losses to a fraction. Nasdaq 100 futures were off 0.55% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.5%, and the SPDR S&P 500 ETF (SPY) moved down 0.1% before Tuesday’s open.
The 10-year Treasury yield ticked up above 1.94% Tuesday morning. On Friday, the 10-year Treasury yield closed just above 1.93% after two straight days of losses. Meanwhile, U.S. oil prices jumped more than 3% Tuesday, with West Texas Intermediate crude climbing back above $93 a barrel.
LNG Stocks In Focus Amid Europe’s Energy Search, As Russia/Ukraine Sabers Rattle
U.S. natural gas prices bolted almost 5% higher, after German Chancellor Olaf Scholz halted the certification process for the Nord Stream 2 pipeline that would transport Russian gas to Germany. The $11 billion project, completed late last year, was a critical question for Germany in relation to Russia’s rising threat against Ukraine.
On Monday, Russian President Vladimir Putin recognized the independence of two Russian-led breakaway regions of Ukraine and sent in Russian troops. The move effectively annexed the regions to Russia, marking what many leaders in the West consider an invasion of the independent country.
Stock Market Rally Struggles
The stock market posted more disappointing action Friday, as the major stock indexes closed with more losses. Amid the recent volatility, now is an important time to read IBD’s The Big Picture column.
Friday’s The Big Picture cautioned, “But overall, weakness remains broad across Wall Street, and most major indexes are in increasing danger of returning to a correction phase. At this stage, a healthy wad of cash is an excellent position in the portfolio.”
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.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Dow Jones Earnings: Home Depot
Dow Jones home improvement retailer Home Depot (HD) reported strong results early Tuesday, sloughed off an early gain and dropped 2.3% in premarket trade. HD shares are below their long-term 200-day line, about 18% from their 52-week high.
Four Dow Jones Stocks To Watch Now
Stock Market Earnings: Macy’s, Diamondback, Matador, Palo Alto
Department store chain Macy’s (M) surged 9% early Tuesday after reporting fourth quarter results that topped Wall Street’s estimates.
Energy leaders Diamondback Energy (FANG) and Matador Resources (MTDR) will report after the close Tuesday. FANG shares are extended past a 117.81 buy point, while Matador remains above its 50-day line after a failed breakout past a 47.33 cup-base entry. Shares rose 3.3% and 1.9%, respectively, in early action.
Lastly, cybersecurity leader Palo Alto Networks (PANW) will also report late Tuesday. The company is expected to earn $1.65 a share on sales of $1.27 billion. Shares are below their 50-day line following last week’s heavy losses.
Dow Jones Stocks To Watch: American Express
American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares are still in the 5% buy range that tops out at 198.59 after two straight day of losses. AXP stock traded a fraction higher in premarket Tuesday.
Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Anthem, Deere, Northern, Wyndham
IBD Leaderboard stock Anthem is about 5% away from a 470.12 flat-base entry following Friday’s 1.1% fall. The stock is right at its 50-day line. Anthem shares were down 0.2% in premarket Tuesday.
Heavy machinery maker Deere fell sharply Friday after its quarterly earnings results. Shares are about 5% below their cup with handle’s 388.20 entry. DE stock moved down almost 2% early Tuesday.
Northern Oil & Gas, is about 5% away from a cup with handle’s 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares jumped about 3% premarket Tuesday.
Last Tuesday’s IBD Stock Of The Day, Wyndham Hotels, is trying to break out past a flat base’s 91.51 buy point, and remain below the entry despite Friday’s 0.3% gain. WH shares traded flat premarket Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dropped more than 2% Tuesday morning, threatening to add to Friday’s 2.2% skid and extend a losing streak to three sessions. The stock is setting up for another test of its long-term 200-day moving average, and is still sharply below the 50-day moving average. There is no proper entry in sight, as the stock continues to consolidate.
The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 31% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock declined 0.9% Friday, falling further below the key 50-day line. Shares are building a cup-with-handle base with a 176.75 buy point. Apple shares declined 0.8% premarket Tuesday.
Software leader Microsoft lost 1% Friday, extending a losing streak to three sessions. Last week, the top Dow Jones stock gave up support around its long-term 200-day line. MSFT stock moved down 0.7% Tuesday morning.
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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