Dow Jones Falls Amid Key Economic Data; Warren Buffett Stock Jumps Up Upgrade

The Dow Jones Industrial Average fell slightly Tuesday morning amid key economic data, including a consumer confidence reading and two home price indices. Warren Buffett Stocks Western petroleum (OXY) benefited from an analyst upgrade, while the Chinese e-commerce giant Ali Baba (BABA) jumped on a massive restructuring plan.


On the economic front, the Conference Board’s Consumer Confidence Index was released Tuesday at 10 a.m. ET. There are also two house price indices: the Case-Shiller Home Price Index and the FHFA House Price Index. Both were expected at 9 a.m

Wall Street expects the Consumer Confidence Index to reach 101.0 in March, slightly down from February’s 102.9. The Case-Shiller Home Price Index was delayed Tuesday morning. It is expected to rise 3.7% in January from December’s 4.6% increase. Furthermore, the FHFA House Price Index rose 0.2% compared to the 0.2% drop expected for January.

Walgreens Boots Alliance (WBA) rose nearly 2% on Tuesday after the company’s fiscal second-quarter results beat earnings and sales estimates.

Stock Market Today: Warren Buffett Stock Jumps

Warren Buffett shares of Occidental Petroleum rose 3.5% after TD Cowen upgraded the stock to outperform, with a price target of 70. Late Monday, Securities and Exchange Commission documents showed that Buffett’s Berkshire Hathaway (BRKB) increased its stake by 3.66 million shares between March 23 and March 27.

Alibaba, the Chinese equivalent of (AMZN), rose nearly 11% on plans to split its operations into six independently run entities. The move represents the largest structural overhaul in Alibaba’s history.

Giant of electric vehicles Tesla (TSLA) fell 1.6% early Tuesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower after today’s market open.

Align technology (ALGN), IBD SwingTrader Shares Meta platforms (META) and IBD ranking Palo Alto Networks (PANW) — as well as Dow Jones stocks Cisco systems (CSCO) and Nike (NKE) — are among the top stocks to watch during the ongoing correction in the stock market.

Palo Alto is an IBD Leaderboard stock. Cisco was featured in this week’s Stocks section near a buy zone. And Meta is a stock of IBD SwingTrader. Palo Alto, Align, Microsoft and Meta were all recent IBD Stock Of The Day topics.

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Dow Jones Today: Oil Prices, Treasury Yields

After Tuesday’s opening bell, the Dow Jones Industrial Average fell a few inches, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite fell 0.5% during the morning action.

Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.5%, while the SPDR S&P 500 ETF (SPY) also lost 0.2% on Tuesday.

The 10-year US Treasury yield rose to 3.52% on Monday, breaking a three-day losing streak. Last week, the 10-year interest rate briefly reached its lowest level since mid-September. On Tuesday, the 10-year ticked up to 3.56%.

US oil prices continued higher on Tuesday after Monday’s sharp gains, when West Texas Intermediate futures traded above $73 a barrel.

Stock market correction

On Monday, the Dow Jones Industrial Average climbed 0.6%. The S&P 500 trimmed its gains to 0.2%. And the Nasdaq trailed by 0.5% as tech companies lagged.

Monday’s Big Picture column noted, “The Nasdaq and S&P 500 are continuing a rally attempt that began about two weeks ago. But so far there has been no follow-up signal to confirm a new uptrend. stock market left in an ambiguous place, making tentative progress, only to run into sellers.”

This is an important time to read IBD’s The Big Picture column amid the ongoing correction in the stock market.

Five Dow Jones stocks to buy and watch now

Dow Jones stocks to watch: Cisco Systems, Nike

According to IBD MarketSmith pattern recognition, Cisco Systems is approaching the 51.84 buy point from a flat base. Bullish, the stock’s relative strength line reached a new high last week, a sign of outperformance in the stock market. CSCO shares fell 0.4% Tuesday morning.

Nike shares continue to track a flat base with a buy point of 131.41. The stock failed to stay above the 50-day mark last week and encountered resistance. NKE shares moved 0.1% on Tuesday.

3 Top growth stocks to watch Stock market correction

Top stocks to watch: Align, Meta, Palo Alto

Align Technology continues to track a consolidation that has multiple buy points: an early entry of 357.10 and a conventional entry of 368.97. ALGN stocks seek support around the 50-day moving average. If the stock crosses this level, further weakness would be expected. ALGN shares rose 0.2% on Tuesday morning.

backstory: The company makes clear teeth straightening systems called Invisalign. UBS analyst Kevin Caliendo says investors have recently regained confidence in Align stock, which is up 50% this year. The quarterly results of Align and its competitors at the end of December, management commentary, US economic data and a recent surge in demand for Invisalign cases support this view, he said in a note to clients.

backstory: Like social media rivals, Meta is struggling due to a sharp drop in ad revenue as customers grapple with macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the “metaverse,” a virtual reality world that has yet to catch on.

IBD Leaderboard share Palo Alto Networks continues to trade above and below its 192.94 buy point from a handle cup amid Monday’s 0.5% gain. The buy area rises to 202.59 as the stock retakes imports. The share of PANW fell by 0.6% on Tuesday.

backstory: Through acquisitions, Palo Alto Networks has grown into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones, and other devices that access corporate networks.

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Stocks to keep an eye on when the stock market corrects

Here are four top stocks to watch in today’s stock market, including two Dow Jones leaders.

Company Name Symbol Correct point of sale Point of sale type
Meta platforms (META) 197.26 Flat base
Nike (by) 131.41 Flat base
Palo Alto Networks (PANW) 192.94 Cup with handle
Cisco systems (CSCO) 51.84 Flat base
Source: IBD data as of March 27, 2023

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Tesla stock

Shares of Tesla rose 0.7% on Monday as it continues to see some support around the 50-day moving average line. Shares closed around 50% of their 52-week high on Monday. Shares of TSLA fell 1.5% Tuesday morning.

On Tuesday, China’s weekly EV registration data could be a key gauge of demand for Tesla in the world’s largest EV market, which is in the middle of a massive price war started by Tesla.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 1.2% on Monday, ending a two-day profit streak. Stocks remain close to their recent highs. AAPL shares fell 0.6% on Tuesday.

Microsoft shares again try to capture the 276.86 buying point from a flat base, but closed below entry again during Monday’s 1.5% loss. The stock is just below the 5% buy territory rising to 290.70. And shares fell 1.1% early Tuesday.

Microsoft shares rose earlier this month after the company announced it was adding artificial intelligence tools to its popular Office productivity applications. That follows the company’s investments in AI startup OpenAI, the company behind the high-profile ChatGPT application.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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