The Dow Jones Industrial Average reversed lower Tuesday morning, looking to rebound from Monday’s stock market dive. Treasury yields jumped, while US oil prices advanced above $ 125 a barrel after Bloomberg reported that President Biden is set to ban US imports of Russian energy. Russia’s ongoing Ukraine invasion, along with the West’s response, remains the key focal point in the stock market today.
Before Tuesday’s open, Dick’s Sporting Goods (DKS) and Olaplex (OLPX) reported their quarterly results. DKS shares advanced 3%, while OLPX stock jumped about 5% after strong results.
Among the Dow Jones leaders, Apple (AAPL) lost 0.2% and Microsoft (MSFT) fell 0.2% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Monday within striking distance of a new buy point.
Electric-vehicle leader Tesla (TSLA) slid 1.5% early Tuesday, threatening to add to Monday’s skid.
Amid the volatile, headline-driven market, Anthem (ANTM), Costco (COST), CSX (CSX) and Union Pacific (UNP) are among Tuesday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Costco and CSX were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russian Invasion, Oil Prices Surge
After Tuesday’s market open, the Dow Jones Industrial Average lost 0.3% and the S&P 500 dropped 0.4%. The Nasdaq fell 0.55% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dipped 0.1%, and the SPDR S&P 500 ETF (SPY) moved up 0.1% after Tuesday’s open.
The 10-year Treasury yield jumped to 1.85% Tuesday morning, as bonds sold down following plans announced by the European Union to launch a “potentially massive” joint bond issue in order to finance energy and defense spending in the face of Russia’s assault on Ukraine . The 10-year note closed at 1.75% on Monday.
Meanwhile, US oil prices climbed more than 5% Tuesday, as West Texas Intermediate crude topped $ 125 a barrel. WTI briefly surged above $ 130 a barrel on Monday to hit its highest level since September 2008, per Dow Jones Market Data.
Russia continued to bombard Ukrainian cities, after low-level negotiators from both sides met for a third round of talks on Monday. Negotiators agreed on some plans to help people trapped in the fighting, but there was little other progress regarding a cease-fire. Russia’s top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Stock Market Rally Attempt
The stock market posted more disappointing action Monday, as the major stock indexes ended with heavy losses. Despite Monday’s losses, all three major stock indexes remain above their Feb. 24 intraday lows, which means Tuesday will be Day 9 of the ongoing rally attempt.
Monday’s The Big Picture commented, “Once indexes undercut the Feb. 24 lows, the rally attempt is done. To be frank, that technical signal seems to be just a formality. The stock market shows no appetite for risk and the main pain points – Russia, inflation, rate hikes – show no sign of diminishing. “
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Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth is just below a 501.03 buy point in a double-bottom base. Shares ended Monday about 3% away from their latest entry. UNH stock traded down more than 2% Monday. UNH shares moved down another 1% early 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 Correction
Stocks To Watch: Anthem, Costco, CSX, Union Pacific
Anthem is back below a flat base’s 470.12 entry after Monday’s 4.7% decline. Anthem was a recent IBD Stock Of The Day. Shares were down 0.3% Tuesday morning.
Retail giant Costco cut gains to 0.6% Monday, but still handily outperformed the major stock indexes. COST shares are tracing the right side of a cup base that has a 571.59 buy point. COST stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics. Costco shares were down 0.2% early Tuesday.
CSX is trying to break out past a 38.11 buy point in a cup base. The stock broke out past the entry Monday, but reversed 1.1% lower to close below the buy trigger. The 5% buy area goes up to 40.02. CSX shares inched higher early Tuesday.
IBD Leaderboard stock Union Pacific remains in the 5% buy area despite Monday’s 1.2% drop. UNP shares broke out past a 256.21 flat-base entry last week. The 5% buy zone tops out at 269.02. UNP shares were up 0.1% early Tuesday.
Per Leaderboard analysis, Friday’s progress justified a boost in the position size by quarter to a half. The RS line had already been making new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock skidded 1.5% early Tuesday, threatening to add to Monday’s 4% skid and extend a three-day losing streak. Shares are now squarely below their long-term 200-day moving average. Monday’s decisive break below the 200-day line signals further weakness is likely.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 353% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares are about 10% away from the new buy point after Monday’s 2.4% loss. AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. Apple shares lost 0.1% Tuesday.
The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions are hesitant to sell their Apple shares.
Software leader Microsoft fell 3.8% Monday, closing further below the 200-day line. Shares continue to build a new base. MSFT stock inched lower 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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