Dow Jones Falls As Apple Drops From Record Highs; Zoom Stock Crashes 17% On Earnings

The Dow Jones Industrial Average fell 100 points before paring losses Tuesday, as Apple stock dropped from all-time highs. And Zoom stock crashed 17% on weak earnings guidance.


Among the Dow Jones leaders, Apple (AAPL) lost 1%, while Microsoft (MSFT) moved down 0.3% in today’s stock market. Home Depot (HD) remains below a new buy point after a recent breakout attempt.

Tesla (TSLA) eased after Monday’s 2.7% advance, losing 0.2% in morning trade. The EV leader is now at the top of its buy range. PayPal (PYPL) dropped 0.5% Tuesday following Monday’s bullish retake of its key 50-day moving average. A new buy point has emerged.

After the close Monday, Zoom Video (ZM) reported better-than-expected Q2 earnings results. But Zoom stock dived as much as 17% in early trade.

Among the top stocks to buy and watch, Academy Sports & Outdoors (ASO), Airbnb (ABNB), Mercado Libre (MELI) and Palantir Technologies (PLTR) are in or near new buy zones.

Airbnb, Microsoft and Tesla are IBD Leaderboard stocks. Academy Sports is an IBD IPO Leader. Palantir was featured in this week’s Stocks Near A Buy Zone column. Airbnb was Tuesday’s IBD Stock Of The Day.

Dow Jones Today

The Dow Jones Industrial Average dropped 0.3% early Tuesday then reversed into tight gains. The S&P 500 trimmed losses to 0.1%. The tech-heavy Nasdaq declined 0.3% in morning trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) was up 0.7% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 0.3% Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.15%.

Stock Market Rally Continues

The Nasdaq and S&P 500 hit fresh record highs Monday, while the Dow Jones Industrial Average remains just off its all-time highs.

Monday’s The Big Picture column commented, “The S&P 500 and Nasdaq look a bit stretched, now trading 3% to 4% above their 50-day moving averages. If the past 10 months are any indication, investors need to be watching for a pullback. With one day left in August, the S&P 500 is on track for its seventh consecutive monthly gain, the best streak since a 10-month run from April 2017 to January 2018. The S&P 500 and Nasdaq are on pace for the ninth monthly gain in the past 10 months.”

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

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Dow Jones Stocks To Buy And Watch: Home Depot

Dow Jones leader Home Depot is trying to break out past a cup-with-handle’s 333.55 entry, but currently sits just below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.

Shares were down 0.35% Tuesday.

Zoom Earnings

After the close Monday, Zoom Video reported its quarterly results. Zoom earnings jumped to $1.36 per share, topping estimates for $1.16. Revenue came in at $1.02 billion, beating estimates for $991.2 million. Despite the earnings and sales beats, the company offered weaker-than-expected earnings guidance for the current quarter.

Early Tuesday, Zoom stock crashed as much as 17% in response to the company’s earnings results. Shares are about 50% off their all-time high, which was set on Oct. 19, 2020, at 588.84.

Stocks To Buy And Watch: Academy Sports, Airbnb, Mercado Libre, Palantir

IPO Leader Academy Sports is in buy range past a 42.85 buy point in a cup base. The top retail stock moved down 0.5% Tuesday. The 5% buy zone tops out at 44.99.

Academy Sports was featured in last week’s IPO Leaders column.

IBD Leaderboard stock Airbnb is in buy range above its 152.86 buy point. Leaderboard’s analysis noted that the stock’s breakout last week came with conviction and strong volume, positive action. Shares rallied almost 1% Tuesday.

According to IBD Stock CheckupABNB stock shows a modest 28 out of a perfect 99 IBD Composite Rating. Newer issues rarely have a sustained earnings track record — which is a key component of the Composite Rating — so a weak rating is normal. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Airbnb was Tuesday’s IBD Stock Of The Day.

Mercado Libre traded up 0.4% Tuesday, trading just under a cup-with-handle‘s 1,899.43 buy point. MELI stock briefly topped the buy point in Monday trade.

Palantir Technologies is just above a cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis. Shares rose 2% Tuesday. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.

Check out Palantir in this week’s Stocks Near A Buy Zone column.

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PayPal Stock

PayPal stock dropped 0.5% Tuesday, but is clinging to its 50-day line. PayPal jumped 3.6% Monday after CNBC reported the company is exploring ways to let users trade individual stocks.

Shares of the payment processor are tracing a flat base with a 310.26 buy point. The stock is about 7% away from the new entry.

Tesla Stock

Tesla stock eased 0.2% Tuesday, on pace to give back a small part of Monday’s 2.7% rise. Last week, shares regained their 700.10 aggressive buy point deep inside a correction and are back in buy range. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high of 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, Apple moved down 1% Tuesday, falling from Monday’s all-time high of 153.49. Apple shares are in buy range above a 148 trend-line buy point.

Software giant Microsoft lost 0.3% Tuesday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.

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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