The Dow Jones Industrial Average and other major stock indexes closed in the red on Tuesday, but finished off session lows, as the Iran-Israel conflict heated up and President Donald Trump called for Tehran to surrender. In trading, a biopharma stock flashed sell signals while Palantir Technologies retreated on the stock market today.
Trump was meeting in the White House's Situation Room with his advisors Tuesday afternoon to discuss options "including a potential U.S. strike against Iran," according to The Wall Street Journal.
The Dow ended down 0.7%, or 299 points. The 30-stock index held below its 200-day moving average after closing on it Monday. The S&P 500 retreated 0.8% and fell below the 6,000 level. The Nasdaq composite gave back 0.9%.
The small-cap Russell 2000 Index slumped 1%. The Russell was above the 2,100 level but remains below its 200-day line.
Volume was significantly lower on the Nasdaq exchange and modestly lower on the New York Stock Exchange vs. Monday. Decliners beat advancers by more than 2-to-1 on both the NYSE and the Nasdaq.
The 10-year Treasury yield sank to 4.38%. Oil prices jumped 4.5% to around $75.10 a barrel. Bitcoin sank to around $105,000.
Among exchange traded funds, the Invesco QQQ Trust dropped 1%, and the SPDR S&P 500 fell 0.9%. The Innovator IBD 50 ETF lost 1.4%.
On the Iran-Israel conflict, reports said Trump is calling for a "real end" to Iran's nuclear program and said Israel had taken control of the skies over Iran. "Our patience is wearing thin," Trump said Tuesday about Iran on a Truth Social post.
Trump on Monday left the G7 conference early, citing the escalated situation in the Middle East, according to another social media post. He also denied that he reached out to Iran for "peace talks," calling that "fake news."
Stock Market Today: Biotech Name Flashes Sell Signals
IBD 50 name Zai Lab stumbled 8.4% and fell below the 39.77 buy point of its consolidation pattern. Shares round tripped an 11% gain from the buy point, triggering a sell signal in addition to the 7% loss sell rule.
Shares have fallen for three straight sessions and are seeking support at their 21-day exponential moving average. The cancer and immune disease treatment stock was the worst performer on the IBD 50 Tuesday.
Another IBD 50 name, Palantir Technologies, gave back 2.3% after reaching a record high Monday. Palantir stock is a holding in the IBD SwingTrader portfolio.
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2:48 p.m. ET
IPO Stock Soars To New High
In stocks, recent IPO CoreWeave – which holds the No. 1 spot on the IBD 50 index – bolted nearly 9% higher in above average volume and reached a record high on the stock market today. Its stock price is now more than quadruple its initial public offering, when it came on the market at 40.
CoreWeave operates a cloud-based platform used for artificial intelligence and is a partner with Nvidia. Nvidia stock edged 0.2% lower Tuesday.
Another new offering, eToro, ceded 3.5% and is on pace for three straight days of losses. The stock is back near its low of 57.50 after reaching nearly 80 on June 10.
A third new issue, Hinge Health, rallied around 4% adding to Monday's 3.9% gain, as it climbs from a recent low. Shares are in an IPO base with a 43.80 buy point.
Outside of new issues, Reddit trimmed larger earlier gains, but was still up nearly 7% in recent action. The social media forum company announced its new Reddit Community Intelligence artificial intelligence powered tool, they call an "engine." The new feature consists of two parts to be used in marketing and advertising campaigns.
1:14 p.m. ET
Travel Stock Has A Bad Trip
India-based MakeMyTrip skidded 8% in enormous volume following the online travel company's announcement of a proposed 14 million share offering and $1.25 billion in convertible notes. The company said it plans to use the proceeds to buy back a portion of its shares from China-based Trip.com.
MakeMyTrip stock fell further below its 200-day line within a long consolidation pattern with a 123 buy point. Meanwhile, Trip.com Group stock climbed nearly 1% Tuesday afternoon and is in a similar 27-week long consolidation with a 77.18 entry point.
KLA rose about 1% and broke out of a long irregular base with an 896.32 buy point. Shares are in a buy zone up to 941.14, according to MarketSurge chart analysis.
The stock got a boost after Oppenheimer raised its price target on the chip-gear maker to 950 from 740 and maintained its outperform rating. KLA stock hit a fresh high on the stock market today.
12:00 p.m. ET
Stock Market Today: Solar Stocks Feel The Heat
Solar stocks sold off sharply in huge volume after Monday night's newly released Senate budget bill showed it would keep a full phaseout of solar and wind energy tax credits by 2028.
SunRun tumbled 42%, and SolarEdge Technologies cratered 37%. Enphase Energy stumbled 25% and was the biggest loser on the S&P 500 Tuesday. Solar stocks have been big underperformers as seen in SunRun's IBD Relative Strength Rating of 23, and Enphase Energy's score of 5.
First Solar stock's drop wasn't quite as dramatic, but shares still sank around 18%.
In other news, Lennar declined 1.7% after the homebuilder reported a miss on fiscal second-quarter earnings but topped sales estimates.
10:47 a.m. ET
Stock Movers: Verve Catapults On Buyout
Verve Therapeutics launched 75% higher in huge volume on news big pharma name Eli Lilly is buying the genetic editing company for $1.3 billion. The stock hit a level not seen since April 2024. Eli Lilly stock gave up 0.7% and sits under its 200-day line, finding resistance.
Jabil bolted 12% higher after the electronics maker handily beat fiscal third-quarter earnings and sales projections. It also provided a fiscal fourth-quarter profit and revenue outlook that was above views. Further, Jabil boosted its fiscal 2025 earnings and sales outlook, with both topping expectations.
Jabil stock is extended from a cup-with-handle buy point at 170.90 and is nearing its 20% profit zone. Shares reached an all-time high on the stock market today.
T-Mobile U.S. sank nearly 4% on news SoftBank sold 21.5 million shares of T-Mobile stock for around $4.8 billion to fund its artificial intelligence infrastructure.
Economic News: Retail Trade, Industrial Production
The U.S. Census Bureau's Monthly Retail Trade Survey showed May retail sales fell 0.9% vs. the 0.6% drop expected and was lower than April's revised 0.1% decrease. The reading without vehicles fell 0.3% vs. the 0.2% rise projected, which lagged the updated flat reading from April.
The Federal Reserve's monthly index showed May's industrial production came in lower than expected with a 0.2% decrease vs. estimates for a 0.1% increase. It also lagged April's revised 0.15% lift higher.
Further, the Fed said May manufacturing bumped up 0.1%, meeting expectations, and showed improvement over a revised 0.5% drop in April.
9:41 a.m. ET
Stock Market Today: Coinbase, Lennar, Tesla
Early movers Tuesday morning included Coinbase Global, Lennar and Tesla.
Coinbase shares declined 1%, while Lennar jumped nearly 4% after the company's earnings results.
Tesla skidded 1.3% in morning trading. Shares of the electric-vehicle giant had been up for six out of the last seven sessions.
8:39 a.m. ET
Circle Keeps Moving Up; Retail Sales Drop
Stablecoin issuer Circle continued to surge, with a 13% advance Monday. On June 5, the company's shares shot up 168% in its trading debut, raising $1.1 billion in an initial public offering after selling an upsized 34 million shares at an above-range price of $31 per share.
Circle stock also jumped more than 4% early Tuesday, putting it near 158 a share.
In economic news, May retail sales dropped 0.9% on the month, below the Econoday estimate for a 0.6% fall. Excluding autos, sales declined 0.3%. They were expected to rise 0.2%.
8:03 a.m. ET
Stock Market Today: Trump Iran News, Fed Meeting Starts
The White House said late Monday that Trump was returning to Washington, D.C., prematurely from the G7 conference in Canada due to the Israel-Iran conflict.
Also on Monday, Trump posted on Truth Social that Iran should have signed the nuclear deal and that "Everyone should immediately evacuate Tehran!" Early Tuesday, Trump posted that he has "not reached out to Iran for 'Peace Talks' in any way, shape, or form."
Elsewhere, May retail sales data is due Tuesday at 8:30 a.m. ET. Sales are expected to fall 0.6% on the month amid lower auto sales, according to Econoday. Excluding autos, however, sales are forecast to rise 0.2%.
Finally, the Federal Reserve's two-day policy meeting kicks off Tuesday. With projections saying no chance of a rate cut Wednesday, markets will focus on whether new projections match March's outlook for 50 basis points in rate cuts this year.
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Dow Jones Leader Goldman Sachs Hits Buy Point
Elsewhere, Dow Jones financial giant Goldman Sachs broke out past a 620.79 buy point in a cup with handle Monday, MarketSurge chart analysis shows. Shares lost 0.6% in premarket trading Tuesday.
Friday's IBD Stock Of the Day was Chili's parent Brinker International, which is above a 177.91 cup-with-handle entry. Brinker stock dipped 0.7% in premarket trades Tuesday.
Finally, Barrick Mining topped a 21.11 entry in a cup with handle during Friday's 3.2% rally. Further, Barrick stock added 0.4% in early action Tuesday.
The ongoing stock market uptrend provides a bullish setting for raising exposure, but investors still need to watch for volatility. Investors should buy stocks with a 21-day average true range, or ATR, of up to 8%. But they should be wary of being too concentrated in high-octane names.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. Further, to find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
And follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
