The Dow Jones Industrial Average closed at lows after reversing amid reports of rockets hitting inside Poland. Warren Buffett’s New Outfit Taiwan semiconductor (TSM) surged as Donald Trump’s SPAC Acquisition of the digital world (DWAC) plunged ahead of the expected announcement of another Trump presidential bid.
Strong walmart (WMT) earnings helped boost retail stocks. Meanwhile, some notable stocks tested buy points, including Free market (MELI), Tenaris (TS) and Shift4 Payments (FOUR).
Volume was up on both the Nasdaq and the New York Stock Exchange according to early data.
The yield on the benchmark 10-year Treasury fell 10 basis points to 3.77%. West Texas Intermediate crude jumped 1% to trade near $87 a barrel.
Markets were boosted early on by encouraging data on the Producer Price Index. Producer prices rose 8% in October, below the September reading of 8.5% and also below the consensus estimate of 8.3%. Core prices rose 6.7%, below the September reading of 7.2% and below consensus of 7.2%.
But the market was shaken after a report of a rocket attack in Poland. A US official told The Associated Press that rockets ripped through NATO member Poland, killing two people. We did not know where the rockets came from. Polish officials did not confirm the report that the missiles were Russian.
Russia claimed the reports were a “deliberate provocation aimed at escalation”. The reported strike in Poland came amid a much wider barrage of strikes in Ukraine, one of the largest in the Russian-Ukrainian war to date.
Nasdaq Off Highs As Small Caps Pop
The Nasdaq closed the day’s highs but still rose 1.5%. Datadog (DDOG) stood out with an increase of 10.2%.
The S&P 500 gained 0.9%. SVB Financial (SIVB) was strong there, up 9.2%.
S&P 500 sectors were mostly positive, with technology and communications services posting the best gains. Health and Materials were the only areas to close negative.
Small caps impressed, with the Russell 2000 ending the day up 1.5%.
The Innovator IBD 50 (FFTY) ETF, a proxy for growth stocks, was also strong. It increased by 1.4%.
Dow Jones Today: Apple Stock, Nike Shine
The Dow Jones Industrial Average was off the highs but managed to break out of the red. Although slightly positive, it was basically flat.
Outside of Walmart, Apple (AAPL) was among the top performers in the Dow Jones today. Its 1.2% gain took it closer to its 200-day moving average.
Nike (NKE) had an even better session as it jumped 2.2%.
On the decline, UnitedHealth (UNH) struggled, dropping 2.1%. Insurer Travelers (TRV) also lagged, falling 1.8%
Walmart earnings boost retail inventory
Walmart stock was the best performer in the Dow Jones today. He received a boost due to his earnings report on Tuesday morning.
The company reported a 3% increase in EPS to $1.50 per share while revenue rose 8.7% to $152.8 billion.
Analysts had expected Walmart to report Q3 EPS of $1.32 on revenue of $147.67 billion. Same-store sales increased 8.2% overall, while the e-commerce segment grew 16%.
Walmart stock rose in a consolidation pattern after gaining 6.5%. The buy point for Dow Jones stock here is 160.87, according to MarketSmith analysis.
Other retail stocks also received a boost.
Target (TGT) jumped 4%, bj wholesale club (BJ) gained 3% while Wholesale Costco (COST) increased by 3.3%.
New Warren Buffett Stock Rockets
Taiwan Semiconductor shares soared on Tuesday on news led by Warren Buffett Berkshire Hathaway (BRKB) bought back shares of the company.
The company has purchased about 60 million shares worth more than $4.1 billion, according to the company’s latest 13F filing.
TSM stock ended the session near highs gaining 10.5%. It has now exploded away from its 50-day moving average and is approaching the 200-day line.
In October, Taiwan Semi, also known as TSMC, the world’s largest contract chipmaker, achieved a beat-and-raise in the third quarter, defying weakness in the chip sector.
However, this is not the only new action of Warren Buffett. Berkshire Hathaway has also opened positions in Louisiana Pacific (LPX) and Jefferies Financial (I F). LPX stock rose 7.8% while Jefferies rose 2.1%.
Nasdaq rallies behind past missile attack; Coming Key Resistance
Donald Trump’s SPAC Dives
The acquisition of SPAC Digital World fell sharply ahead of Trump’s expected announcement regarding his presidential bid on Tuesday. He is expected to make his announcement at 9 p.m. ET from his Mar-a-Lago estate.
DWAC stock ended the session near the lows of the day, plunging 8.8%. It’s down about 51% for the year, but it’s been down for 12 months.
The stock is in the bottom 16% of stocks in terms of stock market performance over the past 12 months.
The fate of Digital World Acquisition, the special-purpose acquisition company linked to Trump, remains up in the air.
The company, which is trying to take the former president’s Trump Media and Technology Group public, has once again cast a key vote. A shareholder vote on whether to approve an extension of the deadline to complete the merger has been pushed back until Nov. 22.
Trump Media and Technology Group’s main product at present is the conservative social media site Truth Social, a right-wing alternative to Twitter.
Outside of Dow Jones: 3 stock test entries
A trio of notable names worth considering have tested Buy Points.
Tenaris is in a buy zone after breaking through a cup buy point with a handle of 34.19. Steel stock is mineable down to 35.90.
Tenaris is the largest supplier of steel tubing used in the construction of oil and gas wells. Revenues are expected to increase by 123% in 2022.
MercadoLibre is also actionable after breaking above a buy point of 1,018.10. The Latin American e-commerce game has seen its RS lineup skyrocket.
Meanwhile, Shift4 Payments is also exploitable after breaking free from a standard entry of 51.52.
Payments stock was boosted by news that the Chickasaw Nation, the 13th largest Native American tribe in the United States and operator of 23 casinos and various other businesses in Oklahoma, has chosen the company to process payments at all of its casinos. .
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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