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Dow Jones Falls As Home Depot, Walmart Report Strong Earnings; Tesla Stock Reverses

The Dow Jones Industrial Average briefly declined 100 points Tuesday, as Home Depot and Walmart both reported strong earnings results. Tesla stock reversed higher in morning trade, as it looks to retake a key long-term support level.


Among the Dow Jones leaders, Apple (AAPL) rallied 0.3% Tuesday, while Microsoft (MSFT) moved down 0.1% in today’s stock market. Goldman Sachs (GS) and JPMorgan (JPM) are in buy zones after recent breakouts.

Meanwhile, Dow Jones components Home Depot (HD) and Walmart (WMT) reported earnings results ahead of the market open.

Tesla (TSLA) reversed almost 3% higher Tuesday.

Among the top stocks to buy and watch, Alphabet (GOOGL), ASML (ASML), Jefferies Financial Group (JEF) and Cameco (CCJ) are in or near buy zones.

ASML and Microsoft are IBD Leaderboard stocks. Jefferies was Wednesday’s IBD 50 Stocks To Watch pick. Cameco was Monday’s IBD Stock Of The Day, while Alphabet was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

The Dow Jones Industrial Average traded down 0.25% early Tuesday, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite pared gains to 0.4% in midday trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) rose 0.2% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded up 0.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.2%.

Split Stock Market Rally

The Dow Jones Industrial Average and S&P 500 eased from their recent all-time highs following Monday’s modest losses. Meanwhile, the tech-heavy Nasdaq is about 6% off its record high, as tech stocks continue to struggle.

Monday’s Big Picture column commented, “With the Nasdaq still below its 50-day moving average, the troubled tech trade still hasn’t resolved itself yet. But plenty of other sectors are attracting money, including metals and financials. The best strategy now is to avoid what’s not working (large-cap technology stocks) and go with what’s working (energy, financials, materials).”

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

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Dow Jones Earnings: Home Depot, Walmart

Dow Jones stocks Home Depot and Walmart reported earnings ahead of the open Tuesday.

Home Depot easily beat first-quarter estimates early Tuesday. The company’s earnings jumped 86% to $3.86 a share as sales rose 33% to $37.5 billion.

HD shares declined 0.5%, on pace to extend a losing streak to three sessions.

Walmart reported strong Q1 results, topping analyst estimates. The discount retail giant reported EPS of $1.69 on revenue of $138.31 billion.

Walmart stock jumped 2% Tuesday morning and is trying to regain its long-term 200-day line.

Dow Jones Stocks: Goldman, JPMorgan

Dow Jones financial leader JPMorgan is in the 5% buy zone past a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares are about 2% above the entry amid Tuesday’s slight gain.

On May 5, Dow Jones stock Goldman Sachs broke out past a 356.95 buy point, entering a buy range that goes up to 374.80. Goldman shares gave up the entry on May 12 before retaking the entry on Thursday. The stock gained 0.3% Tuesday morning.

Stocks To Buy And Watch: Alphabet, ASML, Jefferies, Cameco

FANG stock leader Alphabet is rebounding from its 50-day line. Shares are on pace to extend their win streak to four sessions with a 0.4% gain Tuesday.

Alphabet is an IBD Leaderboard stock. Per Leaderboard commentary, “Alphabet is in a buy zone as it stages a rebound from its 10-week line. It has also moved back above its 21-day exponential moving average, another encouraging sign.”

The stock broke out on April 5 past a 2,145.24 entry in a flat base. The 5% buy area goes up to 2,252.50. So while shares are extended from that entry, they are in buy range from support at the 50-day average.

IBD Long-Term Leader ASML is trying to rebound from its critical 50-day line, placing the chip leader in a new buy area. It is the second time since March that ASML has found support around the same level. The most recent base formed from July to October. Shares rallied almost 1% Tuesday.

ASML is also an IBD SwingTrader stock.

Jefferies is building a cup with handle, offering a 34.52 buy point. Shares are fighting to hold their 50-day line. The stock gained 0.2% Tuesday morning.

According to IBD Stock Checkup, JEF stock boasts a strong 97 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.

Monday’s IBD Stock Of The Day Cameco is in the 5% buy zone past a 19.81 buy point in a cup base, according to IBD MarketSmith chart analysis. Shares dipped 0.4% Tuesday.

Bullishly, the stock’s RS line made a new high Monday, confirming the uranium miner as a stock market leader.

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Tesla Stock

Tesla stock reversed early losses and rose nearly 3% Tuesday, following Monday’s 2.2% loss. Shares are trying to find support around their long-term 200-day moving average, but are falling further below that level.

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 rebound from Monday’s 0.9% decline. Shares are fighting to regain their 50-day line.

Last week, the stock triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point.

IBD Leaderboard stock Microsoft moved down 0.1% Tuesday, as it trades just below a flat base’s 246.23 buy point, according to IBD MarketSmith chart analysis. The buy zone goes up to 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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