Dow Jones futures backed off 300 points Tuesday morning, signaling a weak start to the holiday-shortened week. Tesla stock dropped after the company reported weaker-than-expected deliveries in the second quarter.
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Netherlands-based chip equipment maker ASML Holding (ASML) fell hard as chip stocks continued reeling after Micron Technology‘s (MU) weak quarterly report on Friday. Freeport McMoRan (FCX) carved a 3% loss following a price target cut from Deutsche Bank.
Tesla (TSLA) traded down 2% early Tuesday. Meanwhile, Chinese EV giant BYD (BYDDF) reported strong sales in June. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both modestly lower ahead of today’s stock market open.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth (UNH), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay defensive.
UnitedHealth is an IBD Leaderboard stock. Bristol was IBD Stock Of The Day on June 22. AutoZone featured in last week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
Before Tuesday’s open, the Dow Jones futures lost 1% vs. fair value, and S&P 500 futures dropped 1.1%. Nasdaq 100 futures declined 1.2%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 1.4%. The SPDR S&P 500 ETF (SPY) lost 1.2% in early trade.
The 10-year Treasury yield ticked lower to 2.81% Tuesday following last week’s drop to 2.88% that saw the 10-year Treasury yield close below 3% for the first time since June 7. In mid-June, it hit its highest level since April 2011, at 3.48%.
Meanwhile, U.S. oil prices eased lower, with West Texas Intermediate trading around $108 a barrel. In early March, WTI briefly topped out above $130.
Stock Market Volatility
The stock market posted solid action Friday, as the major stock indexes notched moderate gains. The Nasdaq rose 0.9% Friday, slightly lagging gains of almost 1.1% by the Dow Jones Industrial Average and the S&P 500.
Friday’s The Big Picture column commented, “After posting one of the worst first-half performances in decades, the stock market got off to a better start in the second half of 2022.”
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.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is about 1% below a double bottom base’s 181.84 buy point following Friday’s 1.1% gain, according to IBD MarketSmith chart analysis. JNJ shares were unchanged Tuesday morning.
JNJ stock shows a 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.
Drug giant Merck rebounded Friday, but remains about 2% below its flat base’s 95.02 buy point. Early Tuesday, the stock was quiet.
Health care giant and IBD Leaderboard stock UnitedHealth is in buy range past a double bottom’s 507.36 buy point. Shares was flat Tuesday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone shares moved further above their cup with handle’s 2,130.60 buy point Friday amid a 0.5% rise. Shares were flat Tuesday.
Bristol Myers finished about 2% below a flat base’s 78.72 buy point after Friday’s 0.2% loss. Shares are now trying to find support around their key 50-day line. Shares inched lower Tuesday.
Eli Lilly rose 0.15% Friday, extending a win streak to three sessions. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were unchanged early Tuesday.
Quanta Services is tracing a messy cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Last week, shares found strong support around their 50-day line, which is a key level to watch. Quanta stock was flat Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose 1.2% on Friday, snapping a four-day losing streak. Shares threatened to give up those gains Tuesday morning, moving down 2%.
Over the weekend, Tesla said it delivered 254,695 vehicles in the second quarter, below estimates for 264,000. Covid lockdowns and restrictions significantly reduced Shanghai plant production for much of the quarter. Chief Executive Elon Musk has also cited supply-chain woes for limiting output elsewhere.
The stock is sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 45% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 1.6% Friday and are far below their long-term 200-day line. The stock is about 24% off its 52-week high. Apple shares moved down 0.4% Tuesday morning.
Software leader Microsoft climbed 1.1% Friday, as it looks to rebound after finding stout resistance around its key 50-day line last week. The stock closed about 26% off its 52-week high. Microsoft shares declined 0.7% 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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