Dow Jones dives as Tesla slips on slower deliveries in Q2

The Dow Jones Industrial Average fell 500 points on Tuesday morning, signaling a weak start to the short week. Tesla shares slid after the company reported worse-than-expected delivery sales in the second quarter.


Netherlands-based chip equipment manufacturer ASML Holding (ASML) fell sharply as chip stocks continued to reel after Micron Technologyof the (MU) Friday’s weak quarterly report.

Tesla (TSLA) trading was down 3% early Tuesday. Meanwhile, the Chinese electric car giant BYD (I WILL) is reported strong sales in junebut the stock is still down 2%. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) are lower than the following stock market today open.

In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck (A) and UnitedHealth (UNH), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (ONLY) and Quanta Service (PWR), is one of the stocks to watch. Remember that the constant volatility of the stock market is a reason to stay on the defensive.

UnitedHealth is a IBD Rankings share. Bristol is IBD shares of the day on June 22. AutoZone introduced in column Stocks Near A Buy Zone last week.

Dow Jones today: Treasury yields, oil prices

After opening Tuesday, the Dow Jones Industrial Average lost 1.7%, while the S&P 500 fell 1.6%. The multi-tech Nasdaq composite fell 1.4%. Remember that action overnight in Dow futures contract and elsewhere it doesn’t necessarily translate into actual trading the next week stock market meeting.

Between exchange fundNasdaq 100 Invesco QQQ Trust tracker (QQQ) decreased by 1.4%. SPDR S&P 500 ETF (SPY) lost 1.6% in the early trade.

The 10-year Treasury yield fell to 2.81% on Tuesday after last week’s drop to 2.88%, which saw the 10-year Treasury yield close below 3% for the first time since June 7. In mid-June, it hit its highest level since April 2011, at 3.48%.

Meanwhile, oil prices in the US fell more than 4%, with West Texas Intermediate Company trading around $103.50 a barrel. In early March, WTI briefly climbed above $130.

Stock market volatility

The stock market took firm action on Friday, as the major stock indexes posted moderate gains. The Nasdaq rose 0.9% on Friday, lagging slightly behind gains of nearly 1.1% for the Dow Jones Industrial Average and the S&P 500.

Friday’s Big Picture Category commented, “After posting one of the worst first half performances in decades, the stock market got off to a better start in the second half of 2022.”

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Four Dow Jones stocks to watch now

Dow Jones Stocks to Watch: Johnson & Johnson, Merck

Dow Jones Leader Johnson & Johnson is about 1% below double-bottom 181.84 point of purchase after Friday’s 1.1% increase, according to IBD MarketSmith chart analysis. JNJ stock fell 0.3% Tuesday morning.

JNJ shares showing 94 out of 99 perfect IBD Composite Rating, every Check out IBD stock. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical indicators.

Pharmaceutical giant Merck rebounded on Friday, but is still about 2% below the fixed-base 95.02 buy point. Early Tuesday, the stock was up 0.5%.

Healthcare giant and IBD Rankings UnitedHealth stock is in a buying range past the 507.36 buy point of the double bottom. Shares were down nearly 2% on Tuesday morning.

Top 4 growth stocks to watchrent Stock Market Rally

Top stocks to watch: AutoZone, Bristol, Eli Lilly, Quanta

Shares of AutoZone edged higher than a cup-with-handle 2,130.60 buy point on Friday amid a 0.5% gain. Shares fell 1% on Tuesday.

Bristol Myers finished about 2% below a 78.72 buy point of a flat base after falling 0.2% on Friday. Stocks are currently trying to find support around their key 50-day threshold. Shares of Bristol Myers fell 0.6% on Tuesday.

Eli Lilly was up 0.15% on Friday, extending his winning streak to three sessions. The stock is in a 5% buy zone to 329.81. Shares of Eli Lilly were down 0.4% early Tuesday.

Quanta service is tracking a messy cup with a handle with a buy point of 138.56, according to IBD MarketSmith chart analysis. Last week, stocks found strong support around their 50-day line, which is an important level to watch. Quanta stock fell more than 2% on Tuesday morning.

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Tesla shares

Tesla shares rose 1.2% on Friday, marking a four-day losing streak. Shares threatened to give up that gain Tuesday morning, down 3%.

Last weekend, Tesla says it has delivered 254,695 vehicles in the second quarter, lower than the estimate of 264,000. Closures and Covid restrictions significantly reduced factory output in Shanghai for most of the quarter. CEO Elon Musk has also cited supply chain troubles because of output restrictions elsewhere.

The stock is below the 50 and 200 day moving averages. Tesla stock traded at a high of 1,243.49 on Nov. 4. The stock is down about 45% from that record high.

Dow Jones Leaders: Apple, Microsoft

Between Dow Jones Securities, Apple stock rose 1.6% on Friday and is well below their long-term 200-day line. Shares are down about 24% from their 52-week high. Shares of Apple fell 1.3% Tuesday morning.

Software leader Microsoft was up 1.1% on Friday, as it looked set to recover after finding stiff resistance around the key 50-day threshold last week. Shares closed down about 26% from their 52-week high. Shares of Microsoft fell 1.7% early Tuesday.

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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