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Sunday, June 26, 2022

Dow Jones Falls As Fed Minutes Due; Nvidia, Robinhood Earnings On Deck

The Dow Jones Industrial Average briefly dropped 100 points Wednesday ahead of the Fed’s policy notes from its July meeting. Lowe’s and Target reported earnings ahead of the open, while Nvidia and Robinhood earnings are due late. Tesla stock rebounded in morning trade.




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Among Dow Jones leaders, Apple (AAPL) dropped 0.1% Wednesday, while Microsoft (MSFT) moved up 0.6% in today’s stock market. Home Depot (HD) remains below a recent buy point.

Tesla (TSLA) rallied over 3% Wednesday morning, on pace to snap a three-day losing streak. The EV giant remains squarely below a recent buy point.

Among companies reporting earnings, Lowe’s (LOW) and Target (TGT) reported ahead of the stock market open. Nvidia (NVDA) and Robinhood Markets (HOOD) will report their Q2 results after the close.

Among the top stocks to buy and watch, RH (RH) and Shopify (SHOP) are in or near new buy zones.

Nvidia, Microsoft and Tesla are IBD Leaderboard stocks. Apple is an IBD SwingTrader stock. Nvidia and Shopify featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Fed Minutes Due Out

The Dow Jones Industrial Average lost 0.1% Wednesday, while the S&P 500 dropped 0.15%. The tech-heavy Nasdaq composite erased early gains and is trading slightly lower in midday trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35351.73 +8.45 +0.02
S&P 500 (0S&P5) 4452.35 +4.27 +0.10
Nasdaq (0NDQC ) 14676.87 +20.69 +0.14
Russell 2000 (IWM) 217.28 +0.88 +0.41
IBD 50 (FFTY) 45.36 +0.59 +1.32
Last Update: 10:36 AM ET 8/18/2021

The Fed minutes from the July policy meeting are due out at 2 p.m. ET. The notes will offer more insight into when the Federal Reserve may start to scale back easy-money policies. Fed officials are nearing consensus on beginning to taper bond purchases in about three months, the Wall Street Journal reported this week.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 0.6% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded a fraction higher. Meanwhile, the SPDR S&P 500 ETF (SPY) trimmed its loss to less than 0.1%.

Stock Market Rally

The Dow Jones industrials and the S&P 500 added to Tuesday’s losses, while the Nasdaq was on pace to extend a losing streak to three sessions.

Tuesday’s Big Picture commented, “Given this mixed economic message, IBD readers could reasonably conclude that Tuesday’s harsh initial selling likely also got fueled by concerns over how government policy over Covid-19 may affect the critical back-to-school shopping season and general spending.”

For more stock market commentary, check out IBD’s The Big Picture.


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Dow Jones Stocks To Buy And Watch: Home Depot

Home Depot stock is back below a cup with handle’s 333.55 buy point following Tuesday’s earnings sell-off.

Shares rebounded 1% Wednesday morning, but are still 4% below the buy point. The stock is trying to find support at its 50-day line.

Stock Market Earnings: Lowe’s, Target

Retail giants Lowe’s and Target reported earnings ahead of the open Wednesday.

Lowe’s reported better-than-expected Q2 results early Wednesday, sparking an 8% advance in morning trade. Shares are finding support around their long-term 200-day line and are trying to recapture their 50-day line.

Target modestly beat earnings as back-to-school shoppers stocked up on apparel and offered a solid outlook. But Target stock fell about 1% on slowing store and digital growth. Shares are trying to find support around their key 50-day moving average.

Nvidia, Robinhood Earnings On Deck

IBD Leaderboard stock Nvidia is tracing a flat base with a 208.85 buy point, according to IBD MarketSmith chart analysis. Per Leaderboard analysis, “Unlike the previous base that failed, the prior base spent more time above the 50-day line. Because the previous base undercut a prior pattern, the base count has reset. So, the latest pattern was first stage. These are more likely to succeed.” Nvidia stock moved up almost 1% Wednesday.

Nvidia reports second-quarter results after the close Wednesday. The graphics-chip maker is expected to earn $1.02 per share on sales of $6.3 billion.

Also late Wednesday, Robinhood will report its Q2 results. Analysts expect the company to lose 15 cents per share. Revenue is expected to surge 114% year over year to $521 million. In the year-ago period, Robinhood earned 7 cents per share on sales of $244.2 million.

HOOD stock is about 45% off its post-IPO highs. Shares rose over 4% Wednesday morning.

Stocks To Buy And Watch: RH, Shopify

RH briefly topped a 724.11 buy point in a cup with handle last week. It is now about 5% below the entry after three straight days of losses. The 5% buy area tops out at 760.32. Shares gained 0.6% Wednesday.

Shopify is just below a 1,499.85 buy point in a cup base, while trying to find support at its key 50-day moving average. Shares rose over 1% Wednesday. The IBD Stock Checkup shows SHOP stock with a strong 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Tesla Stock

Tesla stock rallied over 3% Wednesday morning, on pace to snap a three-day losing streak. Shares remain squarely below a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, IBD SwingTrader stock Apple moved down 0.1% Wednesday, threatening to add to Tuesday’s 0.6% loss. Apple stock is in a new buy area above a 148 trendline buy point. The stock hit an all-time high on Aug. 18 at 151.68 before reversing lower.

Software giant Microsoft gained 0.6% early Wednesday, falling further from Monday’s record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.

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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