Stocks thrashed in mixed trade Tuesday as the market groped its way through the holiday-shortened week. Earnings were an active force in early trade, sending Dollar Tree (DLTR), Dycom Industries (DY) and Xpeng (XPEV) sharply higher, while knocking Zoom Video (ZM) for a loop. Chevron (CVX) paced the Dow Jones today, as strong moves in oil prices and bond yields also influenced morning trade.
The Nasdaq Composite dropped 0.5%, while the S&P 500 held to a loss of less than 0.1%. Oil stocks held six of the top 10 gains on the S&P 500, as oil prices climbed despite an international effort led by the U.S. to counteract recent oil and gasoline price increases. Diamondback Energy (FANG) entered a buy area as the stock rebounded from support at its 50-day/10-week moving average.
Dollar Tree reversed its premarket losses and rallied 4.8% to the top of the Nasdaq 100, after reporting third-quarter earnings and announcing it would ratchet its in-store price limit up to $1.25. The gain put shares almost 12% above a breakaway gap buy point at 124.67, after the stock’s explosive Nov. 15 reaction to news that activist investor Mantle Ridge had amassed a $1.8 billion stake, a more-than 5% share of the chain.
Markets will close on Thursday for the Thanksgiving Day holiday, and will run a short session on Friday, closing at 1 p.m. ET. That has the market positioning for a heavy day of economic reports — including weekly jobless claims, October durable goods orders and revisions to third-quarter GDP estimates — on Wednesday.
Dow Jones Today: Chevron Leads, Salesforce Lags Ahead Of Earnings
The Dow Jones Industrial Average defended a 0.1% advance. Chevron swung highest on the Dow Jones today, up 1.2% as oil prices climbed, despite Biden administration efforts to engineer a coordinated release of international strategic petroleum reserves. The White House claimed China, India, Japan, South Korea and the U.K. were set to act in concert with the U.S. The U.S. planned to release 50 million barrels of crude oil as part of the attempt to pressure oil prices lower.
However, West Texas Intermediate futures climbed 1.3% in morning trade to near $78 a barrel. Oil prices have been pulling back since touching a high above $85 in late October.
At the bottom of the Dow Jones today, Salesforce.com (CRM) dropped 1.4%, despite Jefferies maintaining its buy rating and boosting its price target on the stock to 360, from 325. Citi held its rating at neutral, and raised its PT to 308, from 280.
Salesforce is now angling toward a fourth straight decline, trading about 2% above its 50-day moving average, and up a bit more than 6% since clearing a 275.32 buy point in September.
Stocks To Watch: Mp Materials, Xpeng, SiTime
Volatility remained the name of the game for now on the IBD 50 list. SiTime (SITM) led the roster with a 13%, rallying on news that it would join the S&P MidCap 400 at the start of trade on Tuesday. The stock has charted some wide recent daily and weekly moves, but has held in a range between its 10-week line and a high of 301.52 chalked up on Nov. 5.
On Holding (ONON), MP Materials (MP) and Cleveland Cliffs (CLF) also scored strong gains. MP Materials was almost at the boundary of its buy range, above a cup base buy point at 40.78. The buy zone ends at 42.82.
Earnings news sent China-based EV maker Xpeng up 11%, and watchmaker Movado (MOV) to a 9% gain. Both stocks are capitalizing on recent breakouts.
You can find Alan R. Elliott on Twitter @IBD_Aelliott
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