Dow Jones Gains As Apple Stock, Microsoft Rally; Tesla Falls After Elon Musk Reveals This

The Dow Jones Industrial Average moved about 0.4% higher in early-afternoon trading. Apple (AAPL) and Microsoft (MSFT) led the upside. Tesla (TSLA) stock hit reverse gear after CEO Elon Musk spoke out on a mooted deal. Leaderboard play Generac (GNRC) fell on disappointing results.

A number of stocks passed proper buy points amid the mildly positive action. Skyline Champion (SKY), Goldman Sachs (GS), Tradeweb Markets (TW) and Ingersoll Rand (IR) tested entries.

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Nasdaq Up As Small Caps Lag

The Nasdaq was inching higher, though its gain of 0.1% was slim. Nvidia (NVDA) was one of the best gainers, rising more than 2%.

The S&P 500 also rose by a slender 0.4%. Under Armour (UAA) starred here, rising nearly 20% on a beat and raise.

The S&P sectors were mostly positive, with materials and health leading. Energy and consumer discretionary were the worst laggards.

Small caps were lagging the major indexes, with the Russell 2000 falling 0.2%.

However, growth stocks were getting manhandled the most by the bears, with the Innovator IBD 50 ETF (FFTY) dropping 0.9%. Yet this follows three days of strong gains.

Dow Jones Gains As Apple Stock, Microsoft Fall

Within the 30-stock Dow Jones index, Apple stock rose just over 1%. It is now trying to pull away from its 50-day moving average.

Apple has formed a shallow cup with a 157.36 buy point, according to MarketSmith analysis.

Microsoft stock, a fellow member of the Dow Jones index, was also managing to move higher, rising just under 1%. The stock remains extended from a flat-base buy point of 305.94.

The Leaderboard stock managed to hold onto its status as the world’s most valuable company. It snatched the title from Apple on Friday.

Cisco Systems (CSCO) was the leading Dow Jones stock today, rising nearly 3%. Visa (V) lagged, dipping nearly 2%.

Tesla Stock Hits Reverse Gear After Elon Musk Tweet

Tesla stock slid over 5% premarket Tuesday after CEO Elon Musk tweeted that no contract with Hertz has been signed yet.

He said demand far outstrips production capacity for the firm, and that it would sell cars to Hertz only at the same margins as to consumers. He also said the deal “has zero effect on our economics.”

However, Hertz said deliveries have already begun.

“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations,” a spokeswoman said.

Last week, the EV giant’s shares moved above a $1 trillion valuation milestone on news that Tesla had partnered with Hertz, one of the largest car rental companies in the world, to provide it with 100,000 vehicles by the end of 2022.

Meanwhile, Tesla is recalling nearly 12,000 U.S. vehicles due to a software communication error that may cause unexpected activation of the emergency braking system, according to a notice filed with the National Highway Traffic Safety Administration.

The IBD Leaderboard stock remains well extended past a long cup base buy point of 900.50.

Leaderboard Play Falls After This

Generac fell after its latest earnings report. The stock had tried to power back but the bears were overpowering the bulls.

The stock was down about 5% after its Q3 earnings miss. Plus, the large cap energy grid play fell back into its buy zone from a 467.02 entry.

EPS rose 13% to $2.35, while net sales rose 34% to $943 million. Analysts expected EPS of $2.39 and revenue of $959 million, according to Zacks Investment Research.

The power generation firm also announced it is purchasing Canada-based smart thermostat maker Ecobee in a cash-and-stock deal that could be worth up to $770 million. This price is dependent on Ecobee reaching certain performance targets.

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Fertilizer Stock Action Stinks As Earnings, Sales Miss

Fertilizer stock Mosaic (MOS) was down more than 9% after it missed on the top and bottom lines, though it moved off lows.

It is back below a cup entry of 38.33, but managed to find support at the 50-day moving average.

The phosphate producer reported adjusted EPS of $1.35, which missed Wall Street views for $1.59, according to Zacks Investment Research.

Revenue surged 44% to $3.42 billion, but this was lower than analyst views for $3.8 billion.

This could have implications for the highflying Agricultural Chemicals Industry Group. It was one of Tuesday’s worst groups, and the report could threaten its leadership.

The ag group ranked No. 30 out of all 197 IBD industry groups tracked this week, and had been steadily improving.

Beyond Dow Jones: These Stocks Pass Buy Points

Dow Jones industrials component Goldman Sachs is actionable after clearing a new flat base with a buy point of 420.86.

The banking giant is seeing its relative strength line pick up steam, and offers strong price and earnings performance.

Tradeweb Markets is also in a buy zone after moving past a cup base entry of 89.89. This is a third-stage pattern, which is not ideal.

Overall performance is strong, though stock market performance outshines earnings.

Industrial equipment play Ingersoll Rand broke past a shallow seven-week cup with handle at 55.14. Earnings are due however, which adds risk.

Skyline Champion briefly rose above a flat base at 66.92, but quickly reversed. The mobile home maker now sits underneath its buy point.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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