The Dow Jones Industrial Average closed off lows after pulling back amid reports of missile strikes inside Poland. The new Warren Buffett holding Taiwan Semiconductor And Donald Trump SPAC (TSM) rose Taking the Digital World (DWAC) fell ahead of Trump’s expected announcement of another presidential bid.
Strong Walmart ( WMT ) gains helped boost retail stocks. Meanwhile, some prominent stocks have tested buy points MercadoLibre (MELI), Tenaris (TS) and Shift4 payments (FOUR).
Volume on both the Nasdaq and the New York Stock Exchange increased, according to preliminary data.
The yield on the benchmark 10-year Treasury note fell 10 basis points to 3.77%. West Texas Intermediate crude oil rose 1% to around $87 a barrel.
Markets rose early on encouraging producer price index data. Producer prices rose 8% in October, below the 8.5% reading in September and also below the consensus estimate of 8.3%. Core prices rose 6.7%, below September’s reading of 7.2% and below consensus of 7.2%.
But after the news of a missile attack in Poland, the market hit a high. A US official told the Associated Press that the missiles crossed into NATO member Poland, killing two people. It is not known where the rockets came from. Polish officials have not confirmed the news that the missiles belong to Russia.
Russia claimed that these reports were “deliberate provocation aimed at escalation”. The strike, reported in Poland, comes amid a wider crackdown in Ukraine, one of the biggest so far in the Russia-Ukraine war.
Nasdaq Small Caps Pop to Highs
The Nasdaq closed off the day’s highs, but was still up 1.5%. Datadog ( DDOG ) attracted attention as it rose 10.2%.
The S&P 500 gained 0.9%. SVB Finance (SIVB) was strong here, up 9.2%.
S&P 500 sectors were mostly positive, with technology and communications services the top gainers. Health and materials were the only areas to close in the negative.
Small caps impressed, with the Russell 2000 ending the day up 1.5%.
The Innovator IBD 50 ETF (FFTY) was also strong at the call price for growth stocks. increased by 1.4%.
Today’s Dow Jones: Apple Stock, Nike Shine
The Dow Jones Industrial Average hit an all-time high but managed to break out of the red. It was mostly flat, albeit slightly positive.
Outside of Walmart, apple ( AAPL ) was among the top performers on the Dow Jones today. Its 1.2% gain saw it close to its 200-day moving average.
Nike (NKE) had a better session, though it rose 2.2%.
On the downside, UnitedHealth (UNH) struggled, giving up 2.1%. Insurer Travelers (TRV) also decreased by 1.8%
Walmart earnings boost retailer stocks
Walmart shares were the top performer on the Dow Jones today. A boost was given due to Tuesday’s earnings report.
The company reported 3% EPS growth of $1.50 per share, and revenue rose 8.7% to $152.8 billion.
Analysts were expecting Walmart to report EPS of $1.32 on revenue of $147.67 billion. Comparable store sales increased 8.2% overall, while the e-commerce segment expanded 16%.
Walmart shares rose within a consolidation pattern after gaining 6.5%. MarketSmith analysis shows that the buy point for Dow Jones stocks here is 160.87.
Other retail stocks also got a boost.
Target (TGT) rose 4%, BJs Wholesale club (BJ) advanced by 3% Costco Wholesale (COST) increased by 3.3%.
New Warren Buffett Stock Rockets
Taiwan Semiconductor shares rose Tuesday on news led by Warren Buffett. Berkshire Hathaway (BRKB) bought the shares of the company.
According to the company’s latest 13F filing, the firm bought 60 million shares worth more than $4.1 billion.
TSM shares ended the session near highs as they gained 10.5%. It has now broken away from the 50-day moving average and is approaching the 200-day line.
In October, Taiwan’s Semi, also known as TSMC, the world’s largest contract chipmaker, posted a beat and upbeat Q3, defying weakness in the chip sector.
This isn’t Warren Buffett’s only new stock. Berkshire Hathaway also opened positions Louisiana Pacific (LPX) and Jefferies Finance (JEF). LPX shares rose 7.8%, while Jefferies rose 2.1%.
Nasdaq Rallies Past Missile Attack; Main Resistance Ahead
Donald Trump SPAC dives
SPAC Digital World Acquisition fell sharply ahead of Trump’s expected announcement of his presidential bid on Tuesday. He is expected to make the announcement from his Mar-a-Lago estate at 9:00 p.m.
DWAC shares lost 8.8% to end the session near the day’s lows. That’s down about 51% year-to-date, but at a 12-month low.
The stock represents the bottom 16% of stocks by stock market performance over the past 12 months.
The fate of Trump-linked private equity firm Digital World Acquisition remains up in the air.
The firm trying to take the former president’s Trump Media and Technology Group public has once again been on the primary ballot. A shareholder vote on whether to approve an extension to the deadline to complete the merger has been postponed until November 22.
Currently, Trump Media and Technology Group’s flagship product is Truth Social, a conservative social media site that is a right-leaning alternative to Twitter.
Outside the Dow Jones: 3 Stock Test Entries
A trio of notable names tested the points of purchase.
Tenaris is in a buy zone after clearing the cup-with-handle buy point at 34.19. Steel stocks are effective up to 35.90.
Tenaris is the largest supplier of steel tubing used in the construction of oil and gas wells. Earnings are expected to increase by 123% in 2022.
MercadoLibre is also effective after crossing the 1,018.10 handle buy point. The Latin American e-commerce game has seen the RS line make a splash.
Meanwhile, Shift4 Payments may also be in action after clearing the 51.52 standard entry.
News that the Chickasaw Nation, the 13th largest Native American tribe in the U.S. and operator of 23 casinos and various other establishments in Oklahoma, has selected the company to process payments at all of its casino locations gave the payment fund a boost.
Follow Michael Larkin on Twitter @IBD_MLarkin for further analysis of growth stocks.
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