Dow Jones falls amid these Fed meeting fears; Apple Stock Climbers; Bitcoin is falling

The Dow Jones Industrial Average fell as the latest Federal Reserve meeting began. apple (AAPL) flexed muscles even as most blue chips lost ground. Coin base (COIN) and Riot Blockchain (RIOT) fell as Bitcoin underbids $19,000. Ford (F) nose dived after saying that supply costs are rising.

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A trio of stocks showed strength as they looked at buy points. Neurocrine Life Sciences (NBIX), Eastern Bank shares (EBC) and WillScot Mobile Mini (WSC) surpasses all close entries.

Volume was mixed, falling on the Nasdaq but rising on the New York Stock Exchange, according to early data.

The yield on the benchmark 10-year government bond rose seven basis points to 3.56%. West Texas Intermediate crude fell nearly 2% in trading to just over $84 a barrel.

The Fed meeting begins amid these fears

The latest meeting of the Federal Reserve Open Market Committee began on Tuesday. The pressure is on Fed Chairman Jerome Powell to deliver a tone that satisfies both investors and other stakeholders.

While most economists expect a rate hike of 75 basis points, there are fears that it could be even more severe.

“The possibility of a full percentage point rate hike cannot be completely ruled out,” MSCI Head of Portfolio Management Research Andy Sparks said in a note to clients. “However, such a move would be dramatic and could trigger significant sell-offs in bonds and stocks.”

He believes the FOMC will instead choose to “continue its methodical program of raising interest rates in a manner consistent with previous guidance.”

Nasdaq slips as sales increase

The Nasdaq Composite outperformed other major averages. It closed lower but still fell 1%. Adjust technology (ALGN) was one of the worst performers, falling 4.9%.

The S&P 500 was the worst performer of the major indexes, down 1.1%, although it pared some losses. Iron Mountain (IRM) was a particularly weak performer as it slumped 9.8%.

The S&P 500 sectors were all negative, with real estate and materials the worst performers. Consumer goods and technology gave the least reason.

Bears also beat small caps, with the Russell 2000 ending the session 1.4% lower.

The Innovator IBD 50 ETF ( FFTY ), a watch for growth stocks, was also beaten, falling 1.3%.

Dow Jones today: Apple shares bow

The Dow Jones Industrial Average lost ground on its 50-day moving average as it ended the session down 1%.

Apple shares were the best performers with a gain of 1.6%. The relative strength line hit new highs, a bullish indicator.

Wedbush analyst Daniel Ives, who rates the stock “Outperform” with a $220 target, provided an update on iPhone 14 sales in a research note on Tuesday.

“With the iPhone 14 officially hitting shelves in Apple stores this past Friday, we’re seeing ‘brisk sales’ of iPhone Pro 14 units worldwide out of the gates,” he said. “Wait times for many iPhone Pro 14 models are now four to six weeks for Apple customers and will be extended until November.”

He also said that the mix of purchases for the more expensive iPhone Pro model is 85%-90% versus an iPhone 13 Pro mix in the 60%-65% range at this same stage.

Nike (NKE) was beaten. It was the worst-performing stock on the Dow Jones today after falling 4.5%. It was penalized after Barclays downgraded the NKE share to “Equal Weight” from “Overweight”.

Bitcoin Cedes Level; Coinbase Stock, RIOT Dip

Coinbase stock suffered as Bitcoin fell again. It ended well with highs for the day after falling 2.9%. However, COIN stock volume also fell, showing a lack of conviction.

The stock, which cut its full-year forecast last month, is now trading below all the major moving averages. The COIN share is down around 73% since the beginning of the year.

Bitcoin continues to fall amid a tough environment for risky assets. It was trading around $19,000 after falling about 2% in the past 24 hours, according to CoinDesk.

Other cryptocurrency bets were also near lows for the day. Grayscale Bitcoin Trust (GBTC) skidded around 3.1% as Bitcoin mining played out Riot Blockchain (RIOT) plunged 4.6%.

Ford stock was crushed as costs rose

Ford shares crashed after the firm issued a third-quarter cost warning.

The auto giant said costs were $1 billion higher than expected due to inflation and supply chain issues.

Ford said the shortage has affected 40,000 to 45,000 vehicles. These are mainly high-margin trucks and SUVs. It now expects to deliver the vehicles to dealers in Q4.

Nonetheless, management affirmed full-year guidance, forecasting adjusted earnings between $11.5 billion and $12.5 billion.

Ford stock was the worst performer on the S&P 500 as it gave up 12.3%. It gapped down through its 50-day line in massive volume, which is a sell signal.

Despite the bad news, Morgan Stanley maintained its “Equal Weight” rating on the stock, insisting “We would be buyers on weakness below our $14 target which we leave unchanged.”

Outside the Dow Jones: These 3 stocks are showing strength

With the stock market in the grip of a correction, investors should look for the few stocks that are showing strength near buy points.

Neurocrine Biosciences is near the top of a flat base after crossing a trendline entry near 106. It is shooting for an ideal entry point at 109.36, according to MarketSmith analysis.

The relative strength line for NBIX just hit a new high. It has increased since the earnings report on August 4.

Ingrezza, Neurocrine’s biggest money maker, has helped revenues exceed expectations. The stock is a member of the prestigious IBD Leaderboard list of top stocks.

Eastern Bankshares also saw its RS line hit new highs, despite weak action on Tuesday. It is close to a buy point for cup with handle at 21.55.

The stock is among the top 7% of stocks, measured in terms of earnings development, while this year’s modest gain of 1% is better than most competitors.

The WillScot Mobile Mini also climbed, making a flat base with a buy point of 43.81 on the weekly chart.

Its IBD Composite Rating of 98 places it in the top 2% of stocks in terms of overall performance.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.

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