Dow Jones Industrial Average rises Apple (AAPL) and UnitedHealth (UNH) are the top performers. tesla (TSLA) rose as CEO Elon Musk confirmed the layoffs and issued a warning. Bitcoin rallied above the $20,000 level after last week’s meltdown.
There has been no breakout activity following the recent tough action. But Dollar General (DG) is worth watching after being bullied towards a buy point.
Volume split, fell on the Nasdaq and came flat on the New York Stock Exchange, according to early data. This is not comparable due to the quaternary witchcraft.
Meanwhile, the yield on the benchmark 10-year Treasury bond rose seven basis points to 3.31%. West Texas Intermediate crude was up 1% early to trade at around $111 a barrel.
Nasdaq Jumps as Growth Shares Rise
The Nasdaq was skilfully responding after last week’s smackdown. The technology-heavy index rose 2.5 percent. Lucid Engines (LCID) showed the highest performance with an increase of 7.6%.
The S&P 500 was also in rally mode, rising by the same amount as the Nasdaq. Diamond Back Energy (FANG) stood out here as it gained 8.2%.
All S&P 500 sectors were positive. Energy, consumer appreciation, and technology were among the top-performing areas.
Small hats also gave bears a bloody nose. Russell 2000 exploded 1.9%.
Growth stocks also impacted the session, up 3.5% with the Innovator IBD 50 ETF (FFTY), a precursor to growth stocks.
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The Dow Jones Industrial Average was also having a strong session, gaining more than 600 points, or 2.2%. The key is back above the 30,000 level.
Apple stock was one of the best performers, up 3.3%. However, recent painful action means it remains below its 50-day moving average, according to MarketSmith analysis.
But today it was UnitedHealth that had the best payoff at the Dow Jones. It still rose 6.3% while closing highs.
Walt Disney (DIS) was the worst performer, down 1.1%. It was one of only three components that gave up the floor on Tuesday.
Tesla Stock Rises As Elon Musk Confirms This Move
Tesla shares were rising after CEO Elon Musk confirmed Tuesday that the automaker is looking to cut 10% of its workforce.
“Tesla is cutting its salaried workforce by about 10% over the next possibly three months,” the eccentric executive said at a Bloomberg event.
While he still expects his company’s hourly workforce to grow, he said the firm is “growing a little too fast in some areas.”
The news supported TSLA stock, which is moving away from current consolidation lows. It was the best performing company on both the Nasdaq and S&P 500 as it closed the day up 9.4%.
Still, it stands far from a potential entry of 1,208.10, according to MarketSmith analysis. Legacy Leaderboard stock is roughly 10% below its 50-day moving average.
Musk also said that a recession was “inevitable at some point.”
“As for whether there will be a recession in the near term, it is more likely than not,” he added.
Musk also gave an update on his controversial takeover. excitement (TWTR). He highlighted three “unresolved issues” that needed to be addressed: fraudulent accounts, securing debt financing, and gaining shareholder approval. Twitter stock closed Tuesday with gains of 2.9%.
Bitcoin Leaps After Attack
Bitcoin was recovering after a serious sell-off. Whether this is just a dead cat spatter remains to be seen.
It was trading just under $21,000 as it gained 3.5% in the last 24 hours, according to CoinDesk.
The cryptocurrency has been rocked as investors flee to exits as they discard risky assets from their portfolios.
“Rising borrowing costs, margin calls, and over-leveraged speculation have helped accelerate the selling pressure over the past two weeks,” Oanda senior market analyst Edward Moya wrote in a note to clients. Said. “The entire cryptocurrency market is seeing some buyers emerging as the selling pressure may have been excessive.”
Games like Bitcoin Riot Blockchain (RIOT) and Coinbase Global (COIN) exploded. Bitcoin miner RIOT rose 9.5% and cryptocurrency exchange COIN rose 12.2%.
Still, both stocks are miles away from their all-time highs. Both are below their main moving averages.
The Grayscale Bitcoin Trust (GBTC) was also in rally mode and ended the session with 12.3% gains.
Non-Dow Jones: Dollar Rises Towards Entry
With the market still in the grip of a correction, investors should be looking for watchlist candidates.
The dollar is a good candidate as it rises towards a gripped bottom at 240.07 buying point on Tuesday.
The RS line has been looking strong in recent weeks and has reached new highs.
Shares of the discount retailer are now moving away from the key 50-day moving average. DG stock fell 1.1% last week to 230.80 but looks strong now.
As the recession approaches, even Dollar General customers are having to tighten their belts. US consumers, the backbone of economic growth, are not as optimistic as they are often these days.
Dollar General has struggled to beat the sales and earnings growth rates it posted during the pandemic. However, the company raised its outlook for the year in its latest quarterly report, as shoppers continue to seek deals to alleviate inflation woes.
DG stock sites near the top of the Retail-Discount and Diversity industry group. dollar tree (DLTR) and BJs Wholesale (BJ) is also among the group’s top-rated stocks.
The Dollar General went on the air a little towards the end of Tuesday’s IBD Live show on Zoom.
Please follow Michael Larkin on Twitter. @IBD_MLarkin For more information on growth stocks and analytics.
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