Dow Jones Rises, But Tesla, Moderna Lead Growth Sell-Off; 5 Stocks Near Buy

Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures.

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The stock market rally showed divergent action Tuesday, with the Dow rallying, the Nasdaq slumping and S&P 500 somewhere between.

Tesla (TSLA), Moderna (MRNA), Nvidia (NVDA) and Enphase Energy (ENPH) were notable losers, with Apple (AAPL) setting a new bear market low.

On the positive side, Dow Jones giant Caterpillar (CAT), Deere (DE), ATI (ATI), Freeport-McMoRan (FCX) and Schlumberger (SLB) are industrial, metal, mining and energy plays in or near buy points. Underlying commodity prices rose solidly Tuesday, helped by China continuing to roll back Covid restrictions.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures edged higher. Nasdaq 100 futures were flat, with TSLA stock extending losses overnight.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally had a mixed session, with industrial and metal stocks holding up or rising while growth plays struggled.

The Dow Jones Industrial Average inched up 0.1% in Tuesday’s stock market trading. The S&P 500 index fell 0.4%, with Tesla stock the day’s worst performer, followed by Moderna and Nvidia. The Nasdaq composite declined 1.4%. The small-cap Russell 2000 gave up 0.7%.

Apple stock sank 1.4% to 130.03. Intraday, AAPL hit 128.76, just undercutting its bear market low.

Tesla stock plunged 11.4% to 109.01, its worst one-day loss in 11 months, amid a Shanghai plant shutdown, weak China sales data and other news. TSLA stock has now crashed 44% just this month to the lowest levels since August 2020. Volume has been very high all month, signaling institutional selling. TSLA stock fell slightly in extended trade.

Nvidia stock slumped 7.1% to 141.21, breaking below its 50-day line. NVDA stock has tumbled 19% from its Dec. 13 intraday high of 187.90.

MRNA stock sank 9.5% to 180.17, tumbling below a 188.75 cup-with-handle buy point, according to MarketSmith analysis. Moderna blasted out of that base on Dec. 13 on bullish cancer vaccine trial data, soaring 20% that day and hitting 217.25 the following session. But MRNA stock has round-tripped a 15% gain and more.

ENPH stock tumbled 6.6% to 274.54, now well below the 50-day line after undercutting that level on Friday.

U.S. crude oil prices fell 3 cents to $79.53 a barrel after topping $80 Tuesday morning.

The 10-year Treasury yield jumped 11 basis points to 3.86% after soaring 27 basis points last week.

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ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 0.6%. The VanEck Vectors Semiconductor ETF (SMH) slumped 1.8%. NVDA stock is a major SMH holding.

The SPDR S&P Metals & Mining ETF (XME) rose 0.8%. FCX stock and ATI are XME components. The Industrial Select Sector SPDR Fund ETF (XLI) edged up 0.3%, with Caterpillar and DE stock both top 10 holdings.

The U.S. Global Jets ETF (JETS) descended 1.3%. SPDR S&P Homebuilders (XHB) dipped 0.3%. The Energy Select SPDR ETF (XLE) advanced 1.1%, with SLB stock a key component. The Financial Select SPDR ETF (XLF) was just below break-even. The Health Care Select Sector SPDR Fund (XLV) gave up 0.3%.

Reflecting stocks with more speculative stories, ARK Innovation ETF (ARKK) tumbled 4.15%, hitting a fresh five-year low. ARK Genomics (ARKG) slumped 3.8%, closing in on June’s bear market low. Tesla stock remains a major holding across Ark Invest’s ETFs.

Five Best Chinese Stocks To Watch Now

Stocks To Watch

Caterpillar stock rose 1.4% to 243.14, clearing a 239.95 buy point from a flat base right next to a deep cup base. Breakouts have struggled over the past year, but the 6%-deep base lowers the risk somewhat. The relative strength line is at its best level in nearly 10 years.

Deere stock edged down 0.2% to 436.15, still close to its 21-day line with the 10-week line catching up. DE stock has been trading tightly after a strong run. It’s on track to have a shallow flat base at the end of the week with a 448.50 buy point. A move above the Dec. 21 high of 444.51 would offer an early entry in Deere stock. The RS line for DE stock is at a record high.

ATI stock popped 3.8% to 31.45, rebounding from the 10-week line and hitting a trendline entry. The official buy point is 31.84 from a handle. The RS line for ATI is at a three-year high.

Freeport-McMoRan stock rose just over 2% to 38.88, bouncing from the 21-day and 10-week lines. That offers an early entry from a long, deep cup-with-handle base with a 41.26 buy point. FCX stock is not yet extended from its 50-day line, which has just crossed the…