Stock Market

Dow Jones Falls; Tesla Up Despite Delivery Data; This Stock Drops As Warren Buffett Raises Stake

The Dow Jones fell despite rallying into the close, with Nike (NKE) and Apple (AAPL) making some of the best gains. Tesla (TSLA) rose despite disappointing delivery data. A Warren Buffett stock fell even as it emerged Berkshire Hathaway (BRKB) had raised its stake.

A trio of stocks made bullish moves amid the mixed action. MGP Ingredients (MGPI) tested a buy point while Dollar Tree (DLTR) and Funko (FNKO) showed strength as they continued to build bullish bases.




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Volume was lower on both the Nasdaq and the New York Stock Exchange according to early data.

The yield on the benchmark 10-year Treasury note fell eight basis points to 2.83%. West Texas Intermediate crude oil plunged 8% to trade at just under $100 per barrel.

Nasdaq Gains As Tech Stocks Flex

The Nasdaq outshone the other major indexes, rising 1.8%. Zoom Video Communication (ZM) was among the best performers as it gained 8.5%.

The S&P 500 managed to fight its way out of negative territory, rising 0.2%. E-commerce stock Etsy (ETSY) was among the best performers here, popping 10.6%.

The S&P 500 sectors were mostly negative. Technology, consumer discretionary and communication services were the only areas in positive territory. Energy was the worst laggard, with utilities following closely.

Small caps also fought back against the bears, with the Russell 2000 gaining 0.7%.

Growth stocks also surged back, though the Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, closed fractionally negative.

Dow Jones Today: Nike, Apple Stock Lead

The Dow Jones Industrial Average was off lows for the day, but still struggling. It remained down about 0.7%.

Nike was the best performing stock in the index. It ended the day up 3.1% but remains about 9% below its 50-day moving average, MarketSmith analysis shows.

Other stocks doing well on the Dow Jones today included Apple and Microsoft (MSFT). AAPL rose 1.9% while MSFT gained 1.3%.

Both are trading below their 50-day moving averages.

Chevron (CVX) was the worst laggard, dropping 2.6%. It remains up nearly 20% for the year however.

Tesla Stock Rises Despite Delivery Data

Tesla stock managed to reverse higher despite disappointing new delivery data.

Tesla was managing to bounce back despite reporting second-quarter deliveries of 254,695 electric vehicles. This was also below what analysts had expected. It was also down nearly 18% vs. Q1’s record of 310,048 but up 26.5% vs. a year earlier.

Tesla produced 258,580 vehicles in Q2 vs. 305,407 in Q1, nearly all Model 3 sedans and Model Y crossovers.

Tesla Shanghai was shut down for much of April and only resumed full output in early June. The recently opened Tesla Berlin and Austin plants are producing relatively few vehicles, partly due to supply-chain issues. The EV giant said June was a record month for production.

Tesla stock closed at highs for the day as it rose 2.6%. It remains down about 42% since the start of 2022 however.

The former Leaderboard stock remains stuck well below its 50-day moving average. It is near the lows of a consolidation pattern with a 1,208.10 entry.

Warren Buffett Stock Falls After BRKB Buys More

Warren Buffett stock Occidental Petroleum (OXY) fell in open trading after moving higher premarket on the news Berkshire Hathaway had raised its stake in the oil company.

With energy the worst performing sector of the day, Occidental stock was dragged 2.2% lower. Nevertheless, OXY stock remains up around 90% so far in 2022. It lost ground on the key 50-day moving average, MarketSmith analysis shows.

Buffett’s firm Berkshire Hathaway acquired a further 9.9 million more shares, according to a SEC filing. It now owns more than 163 million shares, or more than 17% of the company.

Berkshire Hathaway stock was down more than 1% for the session.

Among other oil stocks, Callon Petroleum (CPE) plunged 8.6% while Diamondback Energy (FANG) dropped 5.8%. Apache parent APA (APA) tumbled 7.4%.

The Vanguard Energy Index Fund ETF (VDE) fell 4.2%, but remains up 20.5% since the start of the year. It is well off recent highs though.


Techs Lead Rally Amid Recession Fears; Markets See End To Fed Hikes


Outside Dow Jones: These 3 Stocks Make Bullish Moves

MGP Ingredients closed below its buy zone after briefly passing a flat base entry of 104.10. Its relative strength line has just hit a new high, a bullish sign.

Earnings are a key strength, while it is in the top 2% of stocks in terms of price performance over the past 12 months.

The firm produces distilled spirits including gins, vodkas and whiskeys.

A couple of names also saw their RS lines hit new highs as they try to reach buy points of their own.

Dollar Tree is closing in on a cup-with-handle buy point of 165.45. Overall performance at the bargain retailer is excellent, which is reflected in an IBD Composite Rating of 96.

Big Money has been buying up stock of late, MarketSmith data shows.

Funko has also formed a cup-with-handle base, this time with a buy point of 25.18. This is an early, second stage pattern. The stock holds a best possible Composite Rating. In total, 93% of shares are currently held by funds.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.

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