The Dow Jones Industrial Average outperformed the major indexes on Tuesday, thanks to strong walmart (WMT) earnings. Tesla (TSLA) CEO Elon Musk scored a rare victory in his fight with Twitter (TWTR). base of coins (CURRENCY) and riot block chain (RIOT) tanked as Bitcoin struggled.
Meanwhile, a series of notable actions including costco wholesale (COST), core group (HUBG) and Fact Set Investigation (FDG) made bullish moves.
Volume rose on the Nasdaq and the New York Stock Exchange, according to preliminary data.
The benchmark 10-year Treasury yield rose two basis points to 2.81%. West Texas Intermediate crude oil fell about 3% to just over $86 a barrel.
Economic data was mixed on Tuesday. US industrial production rose a better-than-expected 0.6%, above June’s flat reading. On the other hand, 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 blue-chip indices but closed well at daily lows, falling 0.2%. Ross Stores (ROST) stood out on the Nasdaq-100, gaining 2.8%.
The S&P 500 managed to gain ground after shaking off initial weakness, inching up 0.2%. Take-Two interactive software (TTWO) impressed here, gaining 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 throughout the session with the Russell 2000 falling 0.1%.
The Innovator IBD 50 ETF (FFTY), a gauge of growth stocks, suffered the most, falling 1.3%.
Dow Jones Today: Walmart Earnings Rise Index
The Dow Jones Industrial Average outperformed after two retail components reported solid gains in the second quarter. It ended the day with a 0.7% gain.
Walmart shares outperformed the Dow Jones, jumping 5.1% and outperforming its 200-day moving average, according to MarketSmith analysis. The retail giant attracted buying interest after outperforming earnings and sales views that have shrunk twice in the last three months.
In addition, it reaffirmed the orientation for the second half of the year.
Management said the company had canceled billions of dollars in orders to help bring inventory levels in line with expected demand.
Home Depot further bolstered the Dow, beating second-quarter earnings views. It ended the session with a gain of 4.1%.
Investors were relieved after the company reaffirmed guidance. More than half of its online orders were fulfilled in person during the quarter, boosting floor traffic, while professional sales growth outpaced consumer sales growth.
Tesla shares fall despite Elon Musk’s victory on Twitter
Tesla shares fell even as CEO Elon Musk scored 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 company has to collect, review and produce documents from only one: former consumer general manager Kayvon Beykpour.
Musk is seeking more information on the number of bot accounts on the platform. He is trying to walk away from the $44 billion takeover deal due to the number of bots and fake accounts on the website.
Tesla shares ended the day down 0.9%. It’s has formed a consolidation with a buy point of 1,152.97, according to MarketSmith analysis.
TSLA stock is still a long way off its entry, making the company one to watch for now. It has managed to hold above the key 200-day moving average.
Twitter shares fell late after spending most of the session in positive territory. closing 0.2%.
Coinbase Stock Hits as Bitcoin Falls
Coinbase stock took it by surprise as Bitcoin fell again, punishing other cryptocurrencies.
COIN has been trying to hold its own after cutting its full-year forecast last week. But shares of Coinbase fell nearly 2% Tuesday on above-average volume.
It fell below its 10-day moving average again, but held steady above the 21-day exponential moving average. It remains 64% below since the beginning of 2022.
Bitcoin pared losses on the day but remained stuck below the $24,000 mark after shedding 0.4% in the last 24 hours, according to CoinDesk.
Other cryptocurrency plays were also reversed. Grayscale Bitcoin Trust (GBTC) fell nearly 1% as Bitcoin mining plays riot block chain (RIOT) fell 6.1%.
Meanwhile, troubled cryptocurrency lender Celsius Network will run out of cash in October, according to a court filing. Celsius filed for Chapter 11 bankruptcy in mid-July and is trying to restructure his business.
S&P 500 pauses as five stocks top buy points
Out of Dow Jones: Costco shares move to buying point
Costco is in a buy zone after it topped a mug-with-a-handle buy point of 552.81. The RS line is trying to go higher.
This is a first stage pattern, which is more likely to result in strong profits.
The bullish move earned Costco shares a spot on the prestigious IBD Leaderboard list of top stocks on Tuesday.
Hub Group closed the day off the highs but is actionable after it removed 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 in the top 10% of stocks in terms of price performance over the past 12 months.
FactSet Research closed just below its entry after clearing a double bottom base. The buy point here is 448.69.
Overall performance is excellent, with its IBD composite rating at 98 out of 99. Big Money has been buying shares lately, with its accumulation/distribution rating at “B.”
Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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