Stock Market Rally Continues To Struggle Amid Rising Inflation and Interest Rates

Strategic Insights -

The Dow Jones Industrial Average rallied slightly on Tuesday after the consumer price index (CPI) came out ahead of the market open, following Monday's stock market sell-off. The 10-year Treasury yield erased its early gains, snapping a seven-day win streak. U.S. oil prices jumped nearly 4% to above $98 a barrel. Amid the market's uptrend struggles, several Dow Jones financial leaders, including American Express, Broadcom, Edwards Lifesciences, Raytheon Technologies, and Shell, are among Tuesday's top stocks to buy and watch.

Key Takeaways:

  • The Dow Jones Industrial Average rose 0.8% on Tuesday, while the S&P 500 moved up 1.1%, and the tech-heavy Nasdaq traded up 1.6% in morning trade.
  • The 10-year U.S. Treasury yield extended its win streak to seven sessions, rising to 2.78% on Monday, before erasing gains on Tuesday, reaching a high of 2.82% on Tuesday morning, its highest level since December 2018.
  • The consumer price index measures the rate of price inflation on common goods, with March rising 1.2% for a year-over-year rate of 8.5%, the fastest increase since December 1981.
  • American Express is tracing a cup-with-handle base, showing a 194.45 buy point, and is a Dow Jones financial stock to buy and watch.
  • Broadcom fell 1.1% on Monday, closing in on the 7%-8% loss trigger, and has a handle entry at 645.41.
  • Edwards Lifesciences continues to advance up the right side of a cup-with-handle base, showing a 131.83 buy point, and is a watchlist stock.
  • Raytheon Technologies is within striking distance of a 104.44 buy point and is trading just 2% off the latest entry.
  • Shell is just below a flat base's 56.23 buy point and is an oil-and-gas producer to watch.
  • Tesla Stock rallied almost 4% early Tuesday, looking to rebound from Monday's 4.8% decline, and is nearing a cup-with-handle's 1,152.97 buy point.
  • Apple shares moved down 2.55% on Monday, further below a 176.75 buy point in a double-bottom base, and is a Dow Jones Leader to watch.
  • Microsoft tumbled 3.9% on Monday, falling further below their 50-and 200-day lines, and is nearly 20% off its 52-week high.

Statistics:

  • The Dow Jones Industrial Average rose 0.8% on Tuesday.
  • The S&P 500 moved up 1.1% on Tuesday.
  • The tech-heavy Nasdaq traded up 1.6% in morning trade on Tuesday.
  • The 10-year U.S. Treasury yield rose to 2.78% on Monday and briefly reached 2.82% on Tuesday morning, its highest level since December 2018.
  • The consumer price index measures the rate of price inflation on common goods, with March rising 1.2% for a year-over-year rate of 8.5%, the fastest increase since December 1981.
  • American Express' buy point is 194.45.
  • Broadcom's handle entry is 645.41.
  • Edwards Lifesciences' buy point is 131.83.
  • Raytheon Technologies' buy point is 104.44.
  • Tesla Stock's buy point is 1,152.97.
  • Apple's double-bottom base entry point is 176.75.

Sources:

  • "Dow Jones Industrial Average" - no date
  • "Consumer Price Index" - no date
  • "Treasury Yield" - no date
  • "American Express" - no date
  • "Broadcom" - no date
  • "Edwards Lifesciences" - no date
  • "Raytheon Technologies" - no date
  • "Shell" - no date
  • "Tesla Stock" - no date
  • "Apple" - no date
  • "Microsoft" - no date