The major stock indexes toggled between narrow gains and losses in morning trade Tuesday. The Dow Jones industrials lost about 50 points, despite gains by Dow Jones stocks Visa (V) and Walmart (WMT). Dow stock Verizon Communications (VZ) was a blue-chip loser.
Software star Salesforce.com (CRM) was lower after quarterly earnings late Monday. Meanwhile, among Exchange Traded Funds, SPDR S&P Retail ETF (XRT) gained 0.6%, as it looked to recover from Monday's near-2% swoon. Retail giants Target (TGT) and Kohl's (KSS) reported bullish earnings results early Tuesday.
Early morning losses eased momentarily after ISM non-manufacturing numbers (59.7 vs. 57.2 estimate) and new home sales (621,000 vs 590,000 estimate) were comfortably above consensus views at 10 a.m ET.
Current Stock Market Action
The tech-heavy Nasdaq composite fell as much as 1.2% Monday before closing down just 0.2%. For Tuesday, the Nasdaq was just below break-even in morning trade. Last week, the Nasdaq made it 10 straight up weeks. The S&P 500 was off 0.2%, while the Dow Jones industrials lost 0.2%. Year to date, the Nasdaq is up about 14%, while the S&P 500 and Dow followed up with gains of about 11% apiece.
The Nasdaq regained its long-term 200-day moving average line, a potential resistance area, in recent weeks and continues to maintain that key level. The S&P 500 and Dow Jones industrials have also reclaimed that key level in recent weeks and are squarely above it.
Dow Jones Stocks: Visa, Walmart Stock
Among the Dow Jones stocks, Visa and Walmart were two of the top performers in morning trade Tuesday. Visa stock is in buy range from a 145.82 buy point, as it nears a new high. Shares moved up 0.5%.
Walmart stock gained over 1% amid a rally in retail stocks, as it tries to regain a cup with handle's 99.45 buy point.
Early Tuesday, Target and Kohl's reported their Q4 earnings results and bullish guidance, sending their respective shares up 3.8% and 4.9%. Target had its strongest total same-store sales growth in more than a decade at 5%. Target stock is battling to regain its long-term 200-day line, while Kohl's stock is finding support at its 50-day line.
Elsewhere, Verizon stock declined 1%, as it looks for support at its 50-day line. The 5G stock is near a double-bottom buy point at 58.79.
Stock Market Earnings: Ciena, Salesforce
After the stock market close Monday, Salesforce.com reported strong Q4 results, but weaker-than-expected guidance, sending shares down 1.4%. Salesforce.com stock is in the buy range of a cup with handle's 153.37 buy point after a breakout on Feb. 1. The 5% buy zone tops out at 161.04.
Leaderboard stock Ciena (CIEN) beat the Street's fiscal-Q1 estimates early Tuesday, sending shares soaring at the stock market open. But shares reversed lower, falling 4.4%. The maker of optical communications devices hit a new high before turning down.
Top Stocks To Watch: Lululemon Stock
Among the IBD 50 stocks, Lululemon stock trimmed its early advance to 0.6%, remaining below a recent cup-with-handle buy point at 152.28. The stock briefly reclaimed that level last week before falling back below it.
According to the IBD Stock Checkup, Lululemon stock has a 94 out of a highest-possible 99 IBD Composite Rating. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge the strengths of a company.