June 12, 2024

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Dow Jones Falls 275 Points; Tesla Stock Skids To End Historic 2022

Dow Jones Falls 275 Points; Tesla Stock Skids To End Historic 2022

The Dow Jones Industrial Average fell 275 points Friday morning at the start of the final trading session of 2022. Tesla stock reversed from early losses in morning trade, set to finish with its worst yearly performance on record, crashing more than 65{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.


Electric-vehicle leader Tesla (TSLA) rose nearly 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded lower after today’s stock market open.

Cardinal Health (CAH), Medpace (MEDP), IBD Leaderboard stock Tenaris (TS) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to consider for investor watchlists. Keep in mind the ongoing market weakness should keep investors on the sidelines.

Tenaris is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health is featured in this week’s Stocks Near A Buy Zone column.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

After Friday’s opening bell, the Dow Jones Industrial Average moved down 0.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the S&P 500 lost 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The tech-heavy Nasdaq composite dropped 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and the SPDR S&P 500 ETF (SPY) moved down 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Friday.

The 10-year Treasury yield rose to 3.84{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday morning, with the yield on pace to rise sharply for a second straight week.

Meanwhile, U.S. oil prices traded less than 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} lower Friday, as West Texas Intermediate futures traded down about 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on the week, near $78 a barrel, following a two-week advance.

Stock Market Correction

On Thursday, the Dow Jones Industrial Average rallied more than 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and the S&P 500 rose nearly 1.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq and small-cap Russell 2000 both advanced 2.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} each. Through Thursday’s close, the Nasdaq declined 33{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year to date, its worst annual performance since 2008. The Dow Jones industrials and S&P 500 are set to post 2022 losses of 8.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 19.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, respectively.

Thursday’s The Big Picture column commented, “Despite Thursday’s gains, IBD’s stock market outlook remains at ‘market in correction’ due to the amount of weakness in recent weeks. That means investors should primarily be on the sidelines in preparation for a new confirmed uptrend. Thursday was Day 1 of a new rally attempt, so a potential follow-through day could occur as soon as next week (Day 4 or later of the rally attempt).”

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Amgen, Caterpillar, Chevron

Drugmaker Amgen continues to trace a flat base amid a potential four-week losing streak. Shares ended a four-day losing streak with a 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} rise Thursday, but are still below their 50-day line. For now, the correct buy point is 296.77, but the stock needs to decisively retake its 50-day first. AMGN stock is up more than 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the year through Thursday. Shares traded up 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday.

Dow Jones member Caterpillar finished back above a 239.95 buy point in a flat base Thursday, according to IBD MarketSmith pattern recognition. The buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. CAT stock has a year-to-date gain of just over 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and is one of the top-performing Dow Jones stocks this year. Shares inched lower Friday.

CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

Energy giant Chevron is trying to again clear its 50-day line amid Thursday’s 0.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain, as the stock continues to trace the right side of a flat base that has a 189.78 buy point. CVX stock is the Dow’s year-to-date leader, up 52{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Shares were down 0.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday morning.

4 Top Growth Stocks To Watch In The Current Stock Market Correction

Top Stocks To Watch: Cardinal Health, Medpace, Texas Roadhouse

Cardinal Health, a recent IBD Stock Of The Day, is holding close to a 81.67 buy point in a flat base. Shares declined 1.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Thursday. CAH stock was down 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday.

Medpace continues to rebound from its 50-day line, rallying more than 3.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Thursday. For now, the correct buy point looms at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday.

Texas Roadhouse shows a new buy point at 101.85 in a flat base, but is now consolidating below its 50-day line. The restaurant leader will look to recover that key benchmark over the coming sessions, but the stock is at its recent lows. TXRH stock traded down 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday morning.

IBD Leaderboard stock Tenaris is trying to break out past a 35.15 flat-base entry. Shares rose 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Thursday to retake the entry. The RS line hit a new high this week. TS stock fell 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday morning. Keep in mind the weak stock market outlook means investors should avoid new stock buys.

Stocks To Watch

These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.

Company Name Symbol Correct Buy Point Type Of Base
Cardinal Health (CAH) 81.67 Flat base
Tenaris (TS) 35.15 Flat base
Texas Roadhouse (TXRH) 101.85 Flat base
Caterpillar (CAT) 239.95 Flat base
Chevron (CVX) 189.78 Flat base
Amgen (AMGN) 296.77 Flat base
Source: IBD Data As Of Dec. 28, 2022

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock extended its rebound Thursday, surging more than 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Shares hit a 52-week low this week at 108.76. And they closed about 70{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their 52-week high.

Shares looked to to their recent rebound, rising nearly 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after reversing from early losses Friday morning.

TSLA stock is set to finish 2022 with its worst annual performance on record, losing more than $700 billion in market valuation amid investor concerns about production disruptions, demand worries and Chief Executive Elon Musk’s focus on Twitter (TWTR). Tesla stock is down more than 65{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} this year.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares jumped 2.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, ending a four-day losing streak and rebounding from their lowest level since June 2021. The stock is around 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high and down 27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} since the start of the year. Shares lost 0.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday morning.

Microsoft stock rallied 2.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Thursday, but is still below the 50-day line. The software giant is about 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high with a year-to-date loss of more than 28{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. MSFT stock moved down 0.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Friday.

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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