Dow Jones up on Walmart earnings; Coinbase Falls When Bitcoin Falls; Elon Musk on Twitter wins
The Dow Jones Industrial Average was the best performer of the major indexes on Tuesday, thanks to strong Walmart (WMT) revenues. Coin base (COIN) and Riot Blockchain (RIOT) fell as Bitcoin struggled. Tesla (TSLA) CEO Elon Musk won a rare victory in his legal battle with Twitter (TWTR).
Meanwhile, a number of notable stocks have included Costco Wholesale (COST), Hub Group (HUBG) and FactSet Research (FDG) made bullish moves.
X
Volume increased on Nasdaq and the New York Stock Exchange, according to preliminary data.
The yield on the 10-year government bond rose two basis points to 2.81%. West Texas Intermediate crude fell about 3% to just over $86 a barrel.
Economic numbers were mixed on Tuesday. US industrial production rose by a better-than-expected 0.6%, higher than June’s flat reading. On the flip side, July housing starts fell 9.6% to an annual rate of 1.446 million units, the lowest level since February 2021.
Nasdaq falls as small caps struggle
The Nasdaq composite underperformed the blue chip indexes, but closed well off lows for the day, falling 0.2%. Ross Stores (ROST) was a Nasdaq-100 standout, gaining 2.8%.
The S&P 500 managed to gain ground after shaking off early weakness, rising 0.2%. Take-Two Interactive Software (TTWO) impressed here with a rise of 7.2%.
The S&P 500 sectors were mixed, with consumer staples and consumer discretionary outperforming, while technology, energy and real estate underperformed.
Small caps struggled through the session, with the Russell 2000 falling 0.1%.
The Innovator IBD 50 ETF (FFTY), a watch for growth stocks, suffered the most, falling 1.3%.
Dow Jones Today: Walmart’s Revenue Growth Index
The Dow Jones Industrial Average outperformed after two retail components reported solid earnings in the second quarter. It ended the day with a gain of 0.7%.
Walmart stock was the best performer on the Dow Jones, jumping 5.1% and breaking through its 200-day moving average, according to MarketSmith analysis. The retail giant sparked buying interest after beating earnings and sales views that were cut twice in the past three months.
In addition, it confirmed the guidance for the second half of the year.
Management said the firm had written off billions of dollars to help adjust inventory levels to expected demand.
Home Depot further boosted the Dow, topping second-quarter earnings views. It ended the session with a gain of 4.1%.
Investors were relieved after the company reaffirmed its guidance. More than half of online orders were placed in person during the quarter, driving floor traffic, while professional sales growth outpaced consumer sales growth.
S&P 500 hits break as five stocks top buy points
Coinbase stock hits as Bitcoin falls
Coinbase stock took it on the chin as Bitcoin fell again, punishing other cryptocurrencies.
COIN has been trying to hold on after cutting its full-year forecast last week. But Coinbase stock was knocked nearly 2% lower Tuesday on above-average volume.
It bounced back below its 10-day moving average, but held steady above the 21-day exponential moving average. It is still down 64% since the start of 2022.
Bitcoin pared losses for the day but remained firmly below the $24,000 mark, having given up 0.4% over the past 24 hours, according to CoinDesk.
Other cryptocurrency games also turned around. Grayscale Bitcoin Trust (GBTC) fell almost 1% while the Bitcoin mining game Riot Blockchain (RIOT) plunged 6.1 percent.
Meanwhile, troubled crypto lender Celsius Network is set to run out of cash by October, according to a court filing. Celsius filed for Chapter 11 bankruptcy in mid-July and is trying to restructure the business.
Tesla shares fall despite Elon Musk’s victory on Twitter
Tesla shares fell even as CEO Elon Musk won a rare victory in his ongoing legal battle with Twitter.
Last week, his lawyers requested documents from 22 Twitter employees. The judge ruled that the social media firm must collect, review and produce documents from just one — former chief consumer officer Kayvon Beykpour.
Musk is seeking more information about the number of bot accounts on the platform. He is trying to walk away from the $44 billion takeover deal because of the number of bots and fake accounts on the site.
Tesla the share ended the day down 0.9 percent. It has formed a consolidation with a buy point of 1,152.97, according to MarketSmith analysis.
TSLA stock is still a long way from entry, making the company one to watch now. It has managed to stay above the key 200-day moving average.
Twitter stock fell late after spending most of the session in positive territory. closes 0.2 percent.
Outside the Dow Jones: Costco shares pass buy point
Costco is in a buy zone after it cleared a cup-with-handle buy point at 552.81. The RS line is trying to swing higher.
This is a first stage pattern, which is more likely to result in strong profits.
The bullish move earned Costco stock a spot on the prestigious IBD Leaderboard list of top stocks on Tuesday.
Hub Group closed the day off highs but is able to trade after it cleared a consolidation pattern. The entry point here is 86.55.
Earnings are very strong for the logistics stock, with its perfect 99 EPS Rating. It is also among the top 10% of stocks in terms of price performance over the last 12 months.
FactSet Research closed just below the entry after earlier clearing a double bottom base. The buy point here is 448.69.
All-around performance is excellent, with its IBD Composite Rating of 98 out of 99. Big Money has been gaining shares lately, with the Accumulation/Distribution Rating coming in at “B.”
Follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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