Dow Jones Sells Off As Retail Sales Miss; Home Depot, Walmart Report Earnings

The Dow Jones Industrial Average sold off 300 points Tuesday, after weak retail sales data steepened early declines. Home Depot and Walmart reported earnings ahead of the open. Tesla stock skidded in morning trade.


Among Dow Jones leaders, Apple (AAPL) dropped 0.5% Tuesday, while Microsoft (MSFT) moved down 0.8% in today’s stock market. Home Depot (HD) and Walmart (WMT) reported earnings ahead of the open, while Disney (DIS) fell further below a recent buy point.

Tesla (TSLA) slid another 3% Tuesday morning, threatening to extend a losing streak to three sessions. The EV giant fell further below a recent buy point.

Among the top stocks to buy and watch, Nvidia (NVDA), RH (RH) and Shopify (SHOP) are in or near new buy zones.

Nvidia, Microsoft and Tesla are IBD Leaderboard stocks. Apple is an IBD SwingTrader stock. Nvidia and Shopify featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Retail Sales Miss

The Dow Jones Industrial Average lost 0.8% Tuesday, while the S&P 500 declined 0.8%. The tech-heavy Nasdaq composite sold off 1.15% in midday trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35371.46 -253.94 -0.71
S&P 500 (0S&P5) 4453.65 -26.06 -0.58
Nasdaq (0NDQC ) 14676.44 -117.32 -0.79
Russell 2000 (IWM) 217.13 -1.94 -0.89
IBD 50 (FFTY) 45.20 -0.03 -0.07
Last Update: 10:32 AM ET 8/17/2021

Early Tuesday, retail sales fell 1.1% in July from the previous month, worse than the Econoday estimate for a 0.2% fall.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1.1% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 1.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.6%.

Stock Market Rally

The Dow Jones industrials and the S&P 500 dropped from Monday’s record highs, while the Nasdaq looked to add to Monday’s mild losses.

Monday’s Big Picture commented, “The stock market took a step back early Monday, with most of the selling concentrated in the Nasdaq composite. But the weakness amounted to just another test of the 21-day exponential moving average for the Nasdaq, and the index closed well off session lows in another display of resilience.”

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Stocks To Buy And Watch: Disney

Disney stock is moving up the right side of a new base. Shares are approaching a 203.12 buy point in a consolidation, while an early entry at 186.39 is also in play. Shares briefly topped the entry on Friday following the company’s strong Q3 results.

Shares lost 1.5% Tuesday morning and are about 5% below the buy point.

Dow Jones Earnings: Home Depot, Walmart

Dow Jones retailers Home Depot and Walmart reported earnings ahead of the open Tuesday.

Home Depot reported EPS of $4.53 on sales of $41.1 billion. Analysts had expected the company to earn $4.43 a share on sales of $40.4 billion. Shares tumbled over 5% in morning trade. The stock closed Monday above a cup with handle’s 333.55 buy point.

Meanwhile, Walmart topped earnings and sales estimates, reporting EPS of $1.78 on revenue of $141 billion. Analyst estimated discount giant Walmart to earn $1.57 per share on revenue of $136.7 billion. Walmart shares are building the right side of a cup base, showing a 153.76 buy point. Shares rallied about 0.3% in early Tuesday trade.

Stocks To Buy And Watch: Nvidia, RH, Shopify

IBD Leaderboard stock Nvidia is tracing a flat base with a 208.85 buy point, according to IBD MarketSmith chart analysis. Per Leaderboard analysis, “Unlike the previous base that failed, the prior base spent more time above the 50-day line. Because the previous base undercut a prior pattern, the base count has reset. So, the latest pattern was first stage. These are more likely to succeed.” Nvidia stock moved down 2.5% Tuesday. Nvidia reports second-quarter results late Wednesday.

RH is trying to break out past a 724.11 buy point in a cup with handle. The 5% buy area tops out at 760.32. Shares lost nearly 3% Tuesday.

Shopify is back at a 1,499.85 buy point in a cup base, while trying to find support at its key 50-day moving average. Shares declined 1% Tuesday. The IBD Stock Checkup shows SHOP stock with a strong 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Tesla Stock

Tesla stock dropped another 3% Tuesday morning, threatening to add to Monday’s sharp losses. Shares are back below a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, IBD SwingTrader stock Apple moved down 0.5% Tuesday, looking to snap a four-day win streak. Apple stock is in a new buy area above a 148 trendline buy point. The stock hit an all-time high on July 15 at 150.

Software giant Microsoft lost 0.8% early Tuesday, easing from Monday’s record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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