Dow Jones Dips Ahead of CPI Inflation Data; Tesla shares up

The Dow Jones Industrial Average and other major stock indexes ended lower on Tuesday, ahead of CPI inflation reports set for release later in the week. Tesla (TSLA) was among the early decliners, putting its recent rally, which had lifted the stock by nearly 48%, at risk of ending.

Dow, S&P 500, and Nasdaq Dip as Treasury Yields Rise and Oil Prices Climb

After the opening bell, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 slipped 0.1%. The Nasdaq Composite, heavily weighted in tech stocks, also declined by 0.1% in early trading.

Meanwhile, the 10-year Treasury yield edged up to 4.39% on Tuesday morning. Oil prices saw a rise, with West Texas Intermediate futures hovering around $68.705 per barrel.

Among ETFs, the Invesco QQQ Trust (QQQ) saw a slight dip, and the SPDR S&P 500 ETF (SPY) also ticked lower following the market open.

Tesla Stock Slides After Five-Day Rally

Tesla shares surged another 9% on Monday, extending their winning streak to five consecutive sessions. During this rally, the electric vehicle giant’s stock soared by as much as 47.7%, reaching an intraday high of 358.64.

This marked Tesla’s best performance since the five-day stretch ending March 25, 2020, when the stock gained 49.3%, according to Dow Jones Market Data. The stock's all-time high remains at 414.50, reached on November 4, 2021.

However, Tesla's momentum hit a pause on Tuesday, with the stock sliding 3% in morning trading.

Stock Market Movers

Tuesday's earnings reports brought some notable stock movements. Home Depot (HD) rose 0.3% in early trading, while On Holding (ONON) saw a 4% drop, and Shift4 (FOUR) lost 3%.

Honeywell (HON) stood out, jumping 4.5% after news broke that Elliott Investment Management had acquired a $5 billion stake in the company.

Investor focus this week is shifting to inflation data, with the Consumer Price Index (CPI) due for release on Wednesday and the Producer Price Index (PPI) on Thursday. Additionally, Federal Reserve Chairman Jerome Powell is set to speak Thursday at 3 p.m. ET, adding to market anticipation.

Market Update: Dow Jones and Tech Stocks

On Monday, the Dow Jones Industrial Average gained 0.7%, while the S&P 500 and Nasdaq both rose by 0.1%.

In a recent IBD Live show, the team discussed current market conditions and strategies for navigating stock market volatility.

Among the top stocks to watch today are Broadcom (AVGO), Costco Wholesale (COST), and Deckers Brands (DECK). Major Dow Jones components such as Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), and Salesforce (CRM) are also in focus. Amazon was highlighted in the Stocks Near A Buy Zone column.

There were six new stocks on IBD MarketSurge’s “Breaking Out Today” list, with On Holding topping a 52.80 buy point in a flat base. Investors can monitor for potential breakouts through IBD’s “Near Pivot” list, or explore additional stock ideas via IBD’s Stock Lists, including IBD 50, Big Cap 20, and Stocks Near A Buy Zone.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.