The Dow Jones Industrial Average dropped Tuesday, as Wall Street reacted to earnings reports from index components Home Depot and Walmart. Meanwhile, artificial intelligence leaders Nvidia and Super Micro Computer dived on the stock market today.
After the opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 dropped 0.7%. The tech-heavy Nasdaq composite was down 1.4% in morning trading.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.6%, as the SPDR S&P 500 ETF fell 0.4%.
The 10-year Treasury yield inched down to 4.26%. Further, oil prices continue to hold near their recent highs, as West Texas Intermediate futures were slightly lower, trading around $78.20 a barrel.
This week, investors will be focused on the latest minutes from the Federal Reserve, due Wednesday, to gain insight into the future path of interest rates. Atlanta Fed President Raphael Bostic spoke out Thursday to say he sees two rate cuts ahead in 2024, though he also said he will "adjust and adapt" if inflation falls faster than expected. Bostic is a voting member of the Federal Open Market Committee.
Stock Market Today: Home Depot, Walmart Earnings
After Tuesday's open, Home Depot sold off 2% in morning trade despite reporting better-than-expected fiscal fourth-quarter earnings.
Walmart rallied 5% after the discount retailer reported better-than-expected fiscal fourth-quarter earnings early Tuesday, but gave a mixed outlook. The Dow Jones retail giant also said it would buy television maker Vizio for $2.3 billion.
Also this week, artificial intelligence giant Nvidia, along with Palo Alto Networks and e-commerce play MercadoLibre are set to report earnings.
Elsewhere, Super Micro dived more than 13% in morning trading. Shares are threatening to extend Friday's 20% plunge.
Dow Jones Falls
On Friday, the Dow Jones Industrial Average declined 0.4%, while the S&P 500 dropped 0.5%. The tech-heavy Nasdaq composite ended the session down 0.8%.
Friday's Big Picture column commented, "Small caps struggled the most on the stock market, with the Russell 2000 falling 1.4%. It remains above the 2,000 mark, however, and is up about 1% since the start of the year. Growth stocks also were mauled by the bears, with the Innovator IBD 50 exchange traded fund tumbling 1.4%."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Today
Birkenstock, Lennar, Toll Brothers and UiPath — plus Dow Jones components Procter & Gamble and Walmart — are among the best stocks to buy and watch in the current market rally.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Walmart Rallies On Earnings
Consumer products giant Procter & Gamble gained 0.3% Friday, rising for a second straight day. Still, shares are just below their 158.38 buy point in a cup base, according to IBD MarketSmith pattern recognition. Procter shares were up 0.8% Tuesday.
Amid Tuesday's early gains, discount retail leader Walmart is moving out of its buy range past a 163.57 entry in a cup with handle..
4 Top Growth Stocks To Watch In The Stock Market Rally
Lennar, Toll Brothers Eye Buy Points
Birkenstock is forging a choppy cup base with a 52.12 buy point, according to IBD MarketSmith. An early entry at 51.09 is also in play. That could transform into a proper handle. Birkenstock shares fell 0.3% Tuesday morning.
Homebuilder Lennar remains below its flat base's 156.01 buy point amid Friday's 2.6% drop. Lennar shares lost 0.6% early Tuesday.
Fellow homebuilder Toll Brothers is bouncing from its 50-day line and is approaching a flat base's 105.91 buy point. Toll stock fell 1% Tuesday.
UiPath dropped 2.8% Friday, further below a 26.53 cup-base entry. UiPath shares fell 1.8% early Tuesday.
Best Bets On Stock Market Today
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Feb. 12, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia and Tesla fell 5.4% and 4.3%, respectively, in morning action Tuesday.
Nvidia shares reversed a fraction lower Friday, still just off record highs and closing more than 40% past a 505.48 buy point in a flat base after a Jan. 8 breakout move.
Tesla dropped 0.2% Friday, ending a two-day rally. Shares remain at their highest level since Jan. 24.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded lower after Tuesday's stock market open.
Apple is forming a flat base with a buy point at 199.62. But Apple stock must first retake the key 50-day moving average, as it searches for support around its long-term 200-day line. Shares dipped 1.1% Tuesday.
Microsoft shares remain out of buy range past a 384.30 buy point in a flat base. The software giant was down 1.3% Tuesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
