The Dow Jones Industrial Average fell Tuesday, as Walmart plunged 8% after lowering its profit outlook for the current quarter and full year. Highly awaited earnings results from tech giants Alphabet and Microsoft are due out after the close.
Late Monday, Apple chipmaker NXP Semiconductors reported strong second-quarter results, sparking a 2% rise in morning trade. NXP shares are trying to build a new base after a sharp rebound from its recent lows.
General Motors fell 3% after second-quarter earnings missed while sales topped. Tesla declined around 1% early Tuesday. Elsewhere, Dow Jones tech leaders Apple traded down 0.5% and Microsoft lost 1.5% before today's stock market open. And Dow Jones stock Coca-Cola rallied 1% after reporting better-than-expected results.
In the volatile stock market environment, Dow Jones stock UnitedHealth — as well as ELF Beauty, Quanta Services, Ulta Beauty, Verra Mobility and Vertex Pharmaceuticals — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
UnitedHealth and Vertex are IBD Leaderboard stocks. ELF and Ulta were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After Tuesday's open, the Dow Jones Industrial Average fell 0.4%, and the S&P 500 dropped 0.7%. The tech-heavy Nasdaq composite lost 1.2% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.9%. And the SPDR S&P 500 ETF fell 0.5%.
The 10-year Treasury yield ticked lower to 2.71% Tuesday morning, giving back the entirety of Monday's bounce. On Friday, the 10-year Treasury yield hit its lowest level since late May. Meanwhile, U.S. oil prices extended Monday's gains, as West Texas Intermediate futures rose almost 2% to trade above $98 a a barrel.
Stock Market Rally
The major indexes wavered much of Monday's session but trimmed losses with a rebound in the final hour. The Nasdaq composite cut its loss to 0.4% as technology, internet and consumer discretionary sectors underperformed. The S&P 500 edged up 0.1% while the Dow Jones Industrial Average rose 0.3%. Small caps outperformed: The Russell 2000 climbed 0.6%.
Monday's The Big Picture column commented, "There's still an unsatisfying amount of growth stocks forming sound bases or making big moves above buy points. Just like it's hard to make apple pie without apples, investors are struggling to build exposure with a dearth of winning stocks."
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.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Health insurance giant and IBD Leaderboard stock UnitedHealth is just above its double-bottom-with-handle base's 518.80 buy point after Monday's 1.55% gain, according to IBD MarketSmith chart analysis. Shares rose almost 1% Tuesday.
UNH stock shows a solid 95 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.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: ELF, Quanta, Ulta, Verra, Vertex
ELF Beauty is back below a 33.54 buy point in a cup with handle following a recent skid. The RS line hit a new high last week, which is a sign of big stock market outperformance. ELF shares were down 1% Tuesday.
Quanta Services is putting the finishing touches on a cup-with-handle base that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 133.68 is also in play. Shares inched higher Tuesday.
IBD Big Cap 20 stock Ulta Beauty is building a flat base with 429.58 buy point. The base comes in the wake of a failed breakout past a cup-with-handle's 426.93 entry in June. In recent weeks, the stock decisively reclaimed its 50-day line, setting the stage for a new buy point. Ulta shares fell more than 3% Tuesday.
Verra Mobility continues to trade below a cup with handle's 16.83 buy point in the wake of Monday's 0.4% gain. The stock's RS line continues to show tremendous strength as it hit a another new high last week. Verra shares were down a fraction Tuesday.
IBD Leaderboard stock Vertex Pharmaceuticals is testing a cup-with-handle's 279.23 buy point amid a two-week pullback in shares, according to IBD MarketSmith chart analysis. The biotech leader is in the 5% buy area that goes up to 293.19 amid Monday's 1.2% rise. But investors should wait for a decisive sign of support before purchasing the stock. Vertex stock was up 0.7% Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 1.4% Monday, snapping an eight-day win streak and giving back a small part of last week's earnings-fueled 13.4% surge. Shares are at their highest level since early May, but are still about 35% off its 52-week high.
Shares dropped about 1% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 0.7% Monday, adding to Friday's losses. Apple remains above its 50-day line after bullish action in recent weeks. Shares remain below their long-term 200-day line, which looms as a resistance level to watch. The stock is about 17% off its 52-week high. Apple shares moved down 0.5% Tuesday.
Microsoft dropped 0.6% Monday, falling back below its 50-day line. The stock closed about 26% off its 52-week high. Microsoft traded down 1.5% Tuesday ahead of the company's earnings results after the close. The company is expected to earn $2.29 a share on revenue of $52.3 billion.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
