Dow Jones Recovers as the Market Touched Critical Support

Dow Jones Recovers as the Market Touched Critical Support

August 30, 2022 0 By Jeanine Sanchez

The Dow Jones index jumped up by 100 additional points on Tuesday. The index aims to gain back some of its losses as it heads into the last two sessions of the month. The stock market is now faced with a significant test while the index pulls back to important areas.

A Few Major Top Earners

The major earners on Tuesday have been the likes of Baidu with its share value going up by 1% following results that came in better than envisaged. The same goes for Best Buy which jumped by 4%. There are also reports from Heico, the aerospace and defense leader, as it secured almost 1% in the early hours of the day.

The automaker, Tesla, saw its stock price rallying an additional 1% on Tuesday. In the Dow Jones index, tech giants like Microsoft and Apple picked up by 0.5% each when the market opened on Tuesday.

In the midst of the current stock market volatility, Costco, Arista Network, Ulta Beauty, GlobalFoundries, as well as McDonald’s, and Chevron are some of the shares to buy and look out for. Bear in mind that the volatility in the market is why investors should be a little defensive.

Costco currently features on the IBD leaderboard as it recently had a break. Whereas, Ulta Beauty and Chevron were on a magazine column this week. While the IBD stock for the day on Friday was Arista.

Oil Prices Dip

The Dow Jones index gained 0.3% in the early hours of trading on Friday. The S&P futures also traded upward to 0.35%. Nasdaq moved up by 0.6% with its retinue of tech stocks.

Invesco QQQ Trust, the Nasdaq 100 monitor, gained 0.6%. The US Treasury’s ten-year yields, however, lost weight by as much as 3.1% on the day. This is despite the fact of closing Monday at its highest rate since the 28th of June.

Oil prices in the US also dropped after they gained to their top-level earlier this month. The prices hit $97/barrel on Monday. The Western Texas futures dropped close to 3% as they traded just a tad bit over $94/barrel.

The Nasdaq index closed by a percent lower on Monday and it ended just on the 50-period daily moving average. It, thus, gave the index an opportunity to either recover or move southward. Dow Jones is now also testing its 50-period support line.