The Dow Jones Industrial Average briefly dropped 125 points Tuesday amid better-than-expected housing data and the start of the Federal Reserve's two-day meeting. Meanwhile, Tesla stock reversed from sharp losses Tuesday morning after the electric-vehicle giant dove below the 200 price level Monday. And CAT stock dived on earnings results.
Early Tuesday, the Case-Shiller Home Price Index topped estimates, rising 1% in August vs. July's 0.9% increase. It was expected to climb 0.7%. Also, the Federal Housing Finance Agency House Price Index grew 0.6% on the month in August, above estimates for a 0.5% increase. Year over year, the FHFA index grew 5.6%.
The Fed meeting kicks off Tuesday, with an interest rate decision on Wednesday at 2 p.m. ET on Wednesday. Markets see zero chance of a rate hike and only a slim chance of an increase at the subsequent meeting on Dec. 13.
On the earnings front, Tuesday's earnings movers included Amgen, Arista Networks, Caterpillar and Lattice Semiconductor. They were joined by Monolithic Power, Pinterest and Pfizer.
Amgen shares dropped nearly 3% in early trade, while ANET stock soared 11%. CAT stock tumbled more than 5%, while Lattice shares plunged another 15%. MPWR stock jumped around 6%, as Pinterest shares raced 18% higher.
Finally, Pfizer shares were down more than 1% in early action.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 inched lower. The tech-heavy Nasdaq composite lost 0.3% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.3%, while the SPDR S&P 500 ETF moved up 0.1% early Tuesday.
The yield on the 10-year U.S. Treasury bond ticked lower to 4.85% Tuesday. On Monday, the benchmark settled at 4.87%.
Oil prices bounced modestly, as West Texas Intermediate futures rose almost 1%, still trading below $83 a barrel.
Stock Market Correction
On Monday, the Dow Jones Industrial Average rallied 1.6%, or 510 points, while the S&P 500 moved up 1.2%. The tech-heavy Nasdaq composite advanced 1.2%.
Monday's Big Picture column commented, "The Nasdaq is now two days into a rally attempt and the S&P 500 just started one. On the fourth day of a rally attempt, it is possible for a follow-through rally confirmation to occur. That possibility adds some drama to this week's market."
Now is an important time to read IBD's The Big Picture column, with the current outlook still in market correction status. Be sure to read how to handle a weak market environment.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
International Seaways, Lululemon Athletica, Light & Wonder and Tradeweb Markets — as well as Dow Jones stocks Walmart and UnitedHealth — are among the best stocks to watch in the deepening stock market correction.
International Seaways and LNW stock are recent IBD Stocks Of The Day. Lululemon and Walmart both featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks To Watch
Dow Jones retail titan Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. Shares snapped a three-day losing streak Monday, rallying 1.2%. WMT stock found support at its key 50-day line. WMT stock fell 0.1% Tuesday.
Healthcare giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock climbed 0.9% Tuesday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Tradeweb In Buy Range
International Seaways is trying to break out past a cup-with-handle's 48.40 entry, but gave up the entry during Monday's 2.4% drop. Keep in mind the market correction should keep you from buying breakout stocks. INSW stock inched lower Tuesday morning.
Lululemon climbed 1.3% Monday, still below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was slightly lower Tuesday morning.
Casino games maker Light & Wonder bounced 0.7% Monday, as shares continue to trace a flat base with a 79.97 buy point. LNW stock was flat early Tuesday.
Tradeweb broke out of a flat base's 87.53 buy point Thursday after the company's third-quarter earnings. TW stock added 1.2% Monday and is showing unusual strength in a weak environment. TW stock was up 0.5% in morning trades Tuesday.
Best Stocks In Today's Stock Market Action
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 |
|---|---|---|---|
| International Seaways | 48.40 | Cup with handle | |
| UnitedHealth | 546.78 | Handle entry | |
| Lululemon | 406.94 | Flat base | |
| Tradeweb Markets | 87.53 | Flat base |
Source: IBD Data As Of Oct. 30, 2023
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Magnificent Seven Stocks: Amazon, Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla rose 0.5% early Tuesday, while Amazon edged lower and Nvidia slid 3.6%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded lower after today's stock market open.
Amazon made a bullish move back above its 50-day line Monday, with a 3.9% advance. Shares are approaching an early entry at 134.48.
Graphics-chip giant Nvidia rose 1.6% Monday, rising for a second consecutive day. Last week, shares undercut the 400 price level for the first time since mid-June.
Tesla stock dived 4.8% Monday, closing below the 200 price level for the first time since May 26. Shares tumbled further below their 200-day line after giving up that key level in recent sessions. Shares are more than 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple added 1.2% Monday, extending Friday's gains. Shares are trying to stem their recent slide around the 200-day line, but are still below that level. Apple delivers its fiscal fourth-quarter report late Thursday. AAPL stock fell 0.8% Tuesday morning.
Microsoft stock bounced 2.3% Monday, adding to Friday's gains and erasing a large part of Thursday's dive. Shares are finding support around their 50-day line and moving closer to an early buy trigger at 346.20. MSFT stock dropped 0.1% early Tuesday.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
