Dow Jones futures fell slightly Tuesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally suffered broad losses Tuesday, with the major indexes and leading stocks falling as overall breadth deteriorated. Tesla stock, Home Depot (HD) and CrowdStrike (CRWD) tested or broke key levels as related names also came under pressure.
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Early Wednesday, Target (TGT) headlines key earnings, along with Lowe’s (LOW), Children’s Place (PLCE), TJX Cos. (TJX) and Analog Devices (ADI).
A weak retail sales report, Home Depot earnings, geopolitical concerns stemming from Afghanistan, and more China pressure on tech firms weighed on stocks Tuesday.
The Nasdaq fell to its 10-week moving average. But this wasn’t just about techs.
The July retail sales report weighed on many consumer names on Tuesday, but several sectors were hard hit.
One exception is the broad medical sector. Dexcom (DXCM), UnitedHealth (UNH), HCA Healthcare (HCA), InMode (INMD), Intuitive Surgical (ISRG), Idexx Laboratories (IDXX) and Zoetis (ZTS) are holding up well or advancing. Many of those are actionable or nearly so.
The video embedded in this article analyzes CRWD stock, Idexx Labs and Copart, as well as the market action.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.2%. Nasdaq 100 futures retreated 0.3%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The 200-Day Average: The Last Line Of Support?
Tesla, Auto Sector Hit
Auto sales fell sharply, the latest evidence that potential buyers are turned off by soaring prices. That’s a bad sign for automakers from Tesla (TSLA) to General Motors (GM). The news also hit auto dealerships such as AutoNation (AN).
Tesla stock fell 3% to 665.71 on Tuesday, but rallied off lows to close just above its 50-day and 200-day lines. On Monday, TSLA stock slumped 4.3%, undercutting a 700.10 early entry, as the NHTSA announced a new Autopilot probe with new language suggesting the agency is stepping up oversight. On Thursday, Tesla is holding an AI Day event.
GM stock lost 4.7% on Tuesday. The stock is below its 200-day line and at its worst levels since February. AutoNation sank 6.3%, erasing Monday’s bullish bounce.
Auto price shock should be good news for salvage operator Copart (CPRT) and retailers such as Advance Auto Parts (AAP), but they also retreated on Tuesday. CPRT stock did find support at its 50-day line, setting up a possible buying opportunity. Copart is the IBD Stock Of The Day.
Home Depot, Retail Sales Hammer Housing
The retail sales report showed spending on home improvement and furniture weakened. A separate homebuilder optimism index declined. Finally, Home Depot’s U.S. same-store sales missed as the number of customers declined.
Home Depot stock gapped…
Read More: Dow Jones Futures: Market Rally Retreats, Tesla, Home Depot, CrowdStrike