Dow Jones Rises On Consumer Confidence, New Orders; Tesla Bounces On Record Deliveries Views

The Dow Jones rose after a strong uptick in consumer confidence and durable goods. Tesla rose ahead of second quarter delivery numbers.

Dow Jones Rises On Consumer Confidence, New Orders; Tesla Bounces On Record Deliveries Views

The Dow Jones Industrial Average rose by 0.3% on Tuesday, after better economic data temporarily quelled fears of recession. In the first hour, other major indexes rose as well.

Consumer confidence has risen to a high 109.7. This is higher than both the consensus forecast (105.5) and the revised May 102.5. In May, new orders for durables rose by 1.7% after a revised 1.2% rise in April. Econoday reported that the Case-Shiller index of home prices rose by 0.9%. This was above expectations for a 0.5% rise.

Friday will bring the personal income and expenditure number, which includes a key reading of inflation.

The volume on the NYSE and Nasdaq was lower than Monday's same time.

The Russell 2000 small-cap index was up 0.5% per hour. Innovator's IBD 50 ETF outperformed the Russell 2000 with a 1.2% gain.

Crude oil dropped to $68.97 per barrel. The yield on 10-year Treasury notes rose by two basis points, to 3.74%.

Dow Jones Walgreens Stock Falls on Earnings

Walgreens Boots Alliance, a Dow Jones component, fell after it reported a weak outlook due to a drop in demand for Covid vaccinations. Covid was no longer a public-health emergency in the U.S. as of May.

Eli Lilly's (LLY), a drug company, rose in value after a promising trial of its weight loss injection Retatrutide. The stock has held up above the line of 21 days and is near its all-time highs.

Alphatec (ATEC), a medical products IBD growth stock, reversed lower Monday after a breakout at 17.13. According to IBD MarketSmith's chart analysis, shares are still in the buy zone.

Dynatrace (DT), also in the IBD50, is on the rise after testing the 21 day line. DT was Monday's IBD stock of the day.

Apple shares (AAPL), which are included in the Dow Jones index, also rose by 0.8%. CNBC, citing an initial Bloomberg report, reported that the company intends to launch a new Apple Watch Ultra alongside the iPhone 15 in this year.

Tesla (TSLA), which had been downgraded recently, bounced back after falling on Friday and Monday. A price upgrade by Deutsche Bank today to 230, from 200, with a Buy rating suggests that the 96% run in 2023 Tesla may still be going strong. Analysts predict that Tesla's second quarter deliveries, which are due this weekend to be a record of 74%, will reach 445,000.

Goldman Sachs' recent downgrade to neutral from buy, with a price target of $258, was one example. Morgan Stanley cut its rating from overweight to neutral, and increased the price target from $200 to $250. Tesla has cleared the resistance level of 217, and is now testing the 21-day average.

Alphabet's (GOOGL), after a three-week slide, is now rebounding. This marks a test for the support of one of the cornerstones of the market.

Delta Air Lines' (DAL) stock rose by more than 3%. The airline has raised its estimates for its free cash flow and expects to earn at the upper end of previous expectations. United Airlines (UAL), with a 54.05, is breaking from a cup handle. The volume is well above the average.

Nike (NKE), a leading sportswear brand, rose by 1.3%. The company will report earnings on Thursday. The Dow Jones leader has crossed the 200-day mark.