The Dow Jones Industrial Average briefly rallied 120 points Tuesday before reversing lower, as inflation cooled slightly, but remained at high levels, in August. Apple stock rallied ahead of its iPhone 13 debut, while Tesla raced higher in today’s stock market.
Tesla (TSLA) looked to add to Monday’s nearly 1% gain, rising over 1% Tuesday morning. The EV leader is just above a new entry. PayPal (PYPL) traded up 0.25% Tuesday, as it continues to offer a new buy point.
Dow Jones Today: Inflation Cools, But Still High
The Dow Jones Industrial Average reversed from early gains to fall 0.4% Tuesday morning. The S&P 500 fell 0.2%, while the tech-heavy Nasdaq traded flat in early action.
Ahead of the market open, the Labor Department said the consumer price index (CPI) in August rose 0.3% from July, slower than the 0.5% increase in July and June’s 0.9% rise. The CPI rose 5.3% in August from a year earlier, down from the 5.4% pace in June and July, on an unadjusted basis.
Stock Market Rally Continues
The Nasdaq is on pace to extend a four-day losing streak with mild losses Tuesday. The S&P 500 looked to rebound from its key 50-day line, while the Dow Jones Industrial Average remains below its own 50-day line.
Monday’s The Big Picture column commented, “Sellers hit leading growth stocks in the stock market Monday, but the rest of the market held up relatively well, with oil and gas stocks leading the way. Solar stocks also outperformed, along with reopening stocks like airlines and hotel operators, amid signs the delta variant wave could be cresting.”
Dow Jones Stocks To Buy And Watch: Nike
Dow Jones leader Nike is tracing a flat base with a 174.48 buy point, according to IBD MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking support at that critical level would be bullish for the stock’s immediate prospects. Shares were down 1% Tuesday.
Through Sept. 10, Nike was the No. 8 performer on the Dow Jones Industrial Average, advancing more than 15%. Goldman Sachs (GS) was the top Dow Jones stock with a year-to-date gain of 53% through Sept. 10.
Stocks To Buy And Watch: Palantir, Shopify, Yeti
Shopify continues to trace a flat base that shows a 1,650.10 buy point. According to IBD Stock Checkup, SHOP stock boasts a 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
SHOP stock lost nearly 1% Tuesday and is falling further below its 50-day line that it gave up last week.
IPO Leader Yeti is approaching a flat base’s 105.72 buy point, but fell 0.3% Tuesday morning. Bullishly, the stock’s relative strength line is near new highs, indicating strong stock market outperformance. The RS line should hit a new high on the breakout day, confirming the stock as a market leader.
Yeti was featured in last week’s IPO Leaders column.
PayPal stock rose 0.25% Tuesday, looking to rebound from Monday’s 0.7% loss. The top stock is right at its 50-day moving average line.
IBD Leaderboard stock Tesla stock rallied more than 1% early Tuesday, adding to Monday’s nearly 1% gain. Tesla stock is in buy range above an alternate entry at 730. In recent weeks, shares regained their 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 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, Apple moved up 0.3% Tuesday, rallying from its key 50-day support level. Apple stock is still in buy range above a 148 trendline buy point.
Apple is holding an online event titled “California Streaming” starting at 10 a.m. Pacific time. Analysts widely expect the company to introduce its 15th-generation smartphones, the iPhone 13 series, as well as Apple Watch Series 7 wearables.
Software giant Microsoft gained 0.7% Tuesday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.
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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