The Dow Jones Industrial Average fell again as the Fed’s most recent meeting began. Tesla (TSLA) CEO Elon Musk will Twitter (TWTR) Moving this week. apple (AAPL) is on the rise after a deal with Major League Soccer.
Meanwhile, three stocks are eyeing the entry. health equity (HQY) to test the buy point while Quanta Service (pressurized water reactor) and Lamarco Resources (METC) is building a bullish base.
Trading volumes on both the Nasdaq and the New York Stock Exchange were down, according to preliminary data.
Meanwhile, the yield on the benchmark 10-year Treasury note rose 10 basis points to 3.47%. West Texas Intermediate oil pared early gains, falling more than 2 percent to trade just above $118 a barrel.
Yields are rising after the Labor Department released the latest producer price index data. Producer prices rose 0.8% in May, in line with Econoday’s forecast, after rising 0.5% in April, data showed. Producer inflation rose 10.8% year-on-year, slightly below expectations of 11%.
The Fed began its two-day policy meeting on Tuesday. The odds of a three-quarters hike in the federal funds rate this week have increased due to recent inflation data.
Nasdaq loses gains as stock market splits
The Nasdaq was the best performer among the major indexes. It was up 0.2% in late trade. Pinduoduo (PDD) was the best performer, up 12%.
The S&P 500 closed down 0.4%. pool (POOL) fell 5.2%, a larger decline.
S&P 500 sectors were mostly negative. Only technology and energy have advanced. Consumer staples and healthcare were the worst performers.
Small-cap stocks were bitten by bears, with the Russell 2000 down 0.4%.
Still, growth stocks are trying to shake off the bears. The bellwether Innovator IBD 50 ETF (FFTY) for growth stocks closed up 0.8%.
Dow Jones Today: Apple Stock Gains in MLS Trading
The Dow Jones Industrial Average lagged other major indexes. It fell about 150 points, or 0.5%.
Apple stock was one of the biggest gainers, albeit modestly. It ended the day up 0.7%.
Previously, the company announced a 10-year deal with Major League Soccer to stream games on its streaming service. It’s another move by the company into sports after it began broadcasting Major League Baseball games this year.
JPMorgan also reiterated its overweight in Apple shares, with the company saying it is bullish on the prospects of Apple TV+. The bank expects to generate about $4.8 billion in revenue by 2025.
but Boeing (BA) was the best performer in the Dow today, up 5.4%. Procter (PG) fell the most, down 3.1%.
Elon Musk will hold a Twitter conference
TWTR stock edged higher on Tuesday. It follows news that Tesla CEO Elon Musk, who is trying to buy the social media company, will hold a meeting with Twitter employees on Thursday.
According to CNN, the eccentric executive will answer pre-submitted employee questions during a virtual meeting on Thursday.
Uncertainty surrounds Musk’s proposed $44 billion takeover of the company.
The Tesla chief said the deal was “on hold” as he waited to learn about the number of bots and fake accounts on the social media platform.
Twitter stock closed off its highs but was still up 0.5%. It remains rooted below its main moving average.
Tesla stock also gave up some gains, but still closed up 2.4%. The top-ranked stock is now well off its 50-day moving average.
TSLA is also well below the current consolidation entry of 1,208.10, MarketSmith analysis shows.
Markets await big Fed rate hike as yields continue to soar
Beyond the Dow: 3 stocks to watch
HealthEquity has entered its buy range above the narrow stem with an early entry at 66.23. However, the handle, while maintaining the spirit of a final pullback at the bottom, did not meet the 5-day minimum in terms of length. Therefore, 72.80 could be an ideal buy point, or 10 cents above the left-side peak of the new cup.
Shares are moving away from their 50-day line. While the overall performance was good, the earnings were not ideal. It currently has an EPS rating of 60 out of 99.
The health savings account company’s earnings per share have declined over the past few quarters but are expected to rebound in fiscal 2024, which ends in January of that year. Wall Street expects EPS to rise 31% to $1.68.
Several stocks are also worth adding to one’s watch list after establishing a bullish new pattern.
Quanta Services makes a cup base with a handle for a point of purchase of 138.56. Shares found support at the 50-day line amid broader weakness.
The relative strength line has made new highs, which is an encouraging sign. The company had three consecutive quarters of accelerating EPS and sales growth. Its encouraging action earned it a spot on the leaderboard watch list on Tuesday.
Energy remains a hot area, with coal stock Ramaco Resources forming a cup bottom with a potential buy point at 21.10.
Shares regained their 50-day line last week for the first time since April. In terms of six-month relative performance, the coal industry group currently ranks first among the 197 IBD industry groups.
Analysts expect full-year 2022 profits to surge 559% to $5.93 a share. Big Money has been snapping up the stock in recent weeks, according to MarketSmith.
Follow Michael Larkin on Twitter @IBD_MLarkin Learn more about growth stocks and analytics.
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