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Monday, July 4, 2022

Dow Jones Falls, Tech Stocks Dive As Tesla Stock Slides On Earnings; Apple Sells Off Before Earnings

The Dow Jones Industrial Average briefly fell 250 points Tuesday, as Tesla stock reversed lower despite strong earnings results late Monday. Tech titan Apple sold off ahead of its earnings after the close.




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Among Dow Jones leaders, Apple (AAPL) lost 1.7% Tuesday, while Microsoft (MSFT) moved down 0.1% in today’s stock market. Apple and Microsoft earnings are due out Tuesday. Home Depot (HD) is approaching a new buy point, but dropped nearly 1% Tuesday.

Tesla (TSLA) looked to give back a part of Monday’s solid gains, falling over 3% Tuesday morning. The EV giant reported strong results late Monday.

Among the top stocks to buy and watch, Advanced Micro Devices (AMD), Roku (ROKU) and Twitter (TWTR) are in or near buy zones.

Microsoft is a IBD Leaderboard stock. Roku is an IBD SwingTrader stock. AMD and Twitter were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

The Dow Jones Industrial Average declined 0.5% Tuesday, while the S&P 500 traded down 0.8%. The tech-heavy Nasdaq composite sold off 1.9% in morning trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35010.02 -134.29 -0.38
S&P 500 (0S&P5) 4401.37 -20.93 -0.47
Nasdaq (0NDQC ) 14682.79 -157.92 -1.06
Russell 2000 (IWM) 216.99 -3.20 -1.45
IBD 50 (FFTY) 44.60 -0.82 -1.81
Last Update: 10:28 AM ET 7/27/2021

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1.5% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 0.7%. Meanwhile, the SPDR S&P 500 ETF (SPY) declined 0.5%.

Stock Market Rally Resumes

The S&P 500 looked to snap a five-day win streak Tuesday following Monday’s record highs. The Nasdaq and Dow also hit record highs on Monday. The Dow Jones industrials are fighting to hold the 35,000 level.

Monday’s Big Picture column commented, “The stock market started one of its most important weeks of the year with small gains. That may not last as Wall Street girds itself for several big earnings reports and a Fed meeting this week.”

For more stock market commentary, check out IBD’s The Big Picture.


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Dow Jones Earnings: Microsoft

Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares lost 0.1% Tuesday, easing from all-time highs. The stock is extended above the 5% buy zone, which goes up to 276.45.

Microsoft earnings are due late Tuesday. Analysts expect the software giant to earn $1.91 a share on revenue of $44.1 billion.

Dow Jones Stocks To Buy And Watch: Home Depot

Dow Jones stock Home Depot is tracing a cup base with a 345.79 buy point. Shares lost nearly 1% Tuesday.

The stock is about 5% away from its new buy point after last week’s rebound from the 50-day moving average.

Stocks To Buy And Watch: AMD, Roku, Twitter

Chip giant Advanced Micro Devices is tracing a cup-with-handle base that shows a 95.54 buy point, according to IBD MarketSmith chart analysis. Shares rallied over 1% Tuesday. The company will report earnings after the close.

AMD stock was featured in this week’s Stocks Near A Buy Zone column.

According to the IBD Stock Checkup, AMD stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Friday’s IBD Stock Of The Day, Roku, surged past a double-bottom-with-handle’s 463.09 buy point, according to IBD MarketSmith chart analysis, during Friday’s 12.6% surge. The 5% buy zone goes up to 486.24. Shares tacked on over 1% Tuesday morning and are nearly extended.

Roku was added to IBD Leaderboard Friday. Per Leaderboard analysis, the stock topped a trendline entry around 431. Roku is also an IBD SwingTrader stock

Social media giant Twitter is trying to break out past a double-bottom-with-handle’s 72.17 buy point. Shares topped the entry on Friday following the company’s strong earnings results, but closed just below the entry. Shares moved up 0.1% Tuesday morning.


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Tesla Earnings

Tesla earnings topped second-quarter forecasts late Monday. The company earned $1.45 per share on revenue of $11.96 billion. Analysts expected earnings to more than double to 90 cents a share compared to the year-ago quarter. Sales were seen jumping 89% to $11.39 billion.

The company said it expects Model S production will continue to increase throughout the rest of the year.

Tesla Stock

Tesla stock reversed from early gains to fall about 3%. The electric-vehicle giant is again trying to find support around its long-term 200-day moving average. Another strong show of support at these levels would be bullish for the stock’s prospects.

On the downside, Tesla’s RS line remains far from its old highs. A lagging RS line is a sign of an underperforming stock relative to the broad market. Tesla stock remains about 27% off its all-time high, even as the major indexes reached record highs Monday.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple Earnings

Among the top Dow Jones stocks, Apple sold off 1.7% Tuesday. The stock hit an all-time high on July 15 at 150. Apple stock is back out of the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

The iPhone maker will report earnings after the close Tuesday. Apple is expected to earn $1.01 a share on sales of $73.2 billion.

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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