The Dow Jones Industrial Average declined over 125 points Tuesday, as Apple inched higher ahead of its “Spring Loaded” product event. Tesla stock jumped on a price-target boost, while Nvidia reclaimed its recent buy point.
Tesla (TSLA) raced 2% higher Tuesday, following Monday’s 3.4% tumble. Dow Jones stock Johnson & Johnson (JNJ) reported strong Q1 estimates early Tuesday. Meanwhile, Netflix (NFLX) will report earnings after the close.
Lam Research, Microsoft and Nvidia are IBD Leaderboard stocks.
Dow Jones Today
The Dow Jones Industrial Average declined 0.3%, while the S&P 500 dropped 0.2%. The tech-heavy Nasdaq composite lost less than 0.1% in morning trade.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1.1% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) inched 0.1% lower. Meanwhile, the SPDR S&P 500 ETF (SPY) was down 0.3%.
Stock Market Rally: Dow, S&P Hit New Highs
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 hit record highs Friday, but are now pulling back.
Meanwhile, the tech-heavy Nasdaq sits just off its own all-time highs amid the index’s recent strength, but is finding resistance around the 14,000 level.
Monday’s Big Picture commented, “Sellers hit leading semiconductor stocks and small-cap stocks in the stock market Monday. The Russell 2000 small-cap index fell below its 50-day moving average, but the Nasdaq composite managed to hold near its short-term 10-day moving average.”
Dow Jones Stocks: Nike Downgrade
Nike stock declined almost 3% Tuesday morning after Citigroup downgraded the stock from buy to neutral and lowered its price target from 160 to 140.
Shares of the Dow Jones stock are more than 10% from their 52-week high and are approaching their long-term 200-day moving average.
Dow Jones Earnings: Johnson & Johnson
Early Tuesday, Johnson & Johnson reported strong Q1 earnings and sales results. The company reported adjusted earnings of $2.59 per share on $22.3 billion in sales.
JNJ stock rallied over 1% early Tuesday, on pace to add to a four-day win streak. Shares are moving further above their 50-day moving average.
Stock Market Earnings: Netflix Earnings
FANG leader Netflix will report its quarterly earnings results late Tuesday. Analysts expect the company to earn $2.98 a share on revenue of $7.14 billion, according to IBD data.
NFLX stock rose about 1% in morning trade and is forming a base with a 593.39 buy point.
Stocks To Buy: Lam Research, Nvidia
IBD Leaderboard stock Lam Research is back in buy range past a 603.70 buy point in a flat base, according to IBD MarketSmith chart analysis. The 5% buy range runs up to 633.89. Shares were flat early Tuesday.
According to Leaderboard commentary, “Lam Research sank back into buy range from a cup base after tumbling Monday morning. Lam is also trying to make a stand at the 21-day exponential moving average. The relative strength line made new highs at the breakout, a bullish sign.”
Graphics-chip maker Nvidia ended Monday just below its 615 buy point in a new cup base amid the day’s 3.5% fall. The 5% buy zone goes up to 645.75. Shares rose 0.5% Tuesday morning to reclaim the buy point.
According to IBD Stock Checkup, Nvidia stock boasts a strong 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Tesla stock raced over 2% higher Tuesday morning, adding to snap back from Monday’s over-3% tumble. Ahead of the open, Mizuho boosted its price target from 775 to 820, while reiterating a buy rating.
Last week, shares of Tesla regained their key 10-week moving average, a critical support level, for the first time since late February. Tesla is forming a new base, but it is too early for a new risk-optimal buy point.
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, Microsoft
Among the top Dow Jones stocks, Apple rallied 0.3% Tuesday, looking to add to Monday’s 0.5% gain. Apple’s “Spring Loaded” product event will begin at 1 p.m. ET. The company is widely expected to unveil new iPads, including a new iPad Pro with a mini-LED display
Apple stock is building a cup base with a 145.19 buy point, according to MarketSmith chart analysis.
Software giant Microsoft moved up 0.3% Tuesday. Microsoft is trading at the top of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.
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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