Dow Jones falters during attack on Poland; Donald Trump SPAC diving; Warren Buffett shares rise

The Dow Jones Industrial Average closed low after reversing reports that rockets have struck inside Poland. New Warren Buffett estate Taiwan semiconductor (TSM) rose while the Donald Trump SPAC Acquisition of the digital world (DWAC) plunged ahead of the expected announcement of another presidential bid from Trump.


Loud Walmart (WMT) helped boost the retail stock. Meanwhile, some major stocks have tested buy points, including MercadoLibre (MELIA), Tenaris (TS) and Shift4 Payments (FOUR).

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

The yield on the benchmark 10-year Treasury bond fell 10 basis points to 3.77%. West Texas Intermediate crude oil was up 1% to trade at nearly $87 a barrel.

Markets were initially stimulated by encouraging producer price index data. Producer prices rose 8% in October, below September’s reading of 8.5% and also below the consensus estimate of 8.3%. Core prices rose 6.7%, below September’s reading of 7.2% and below the consensus of 7.2%.

But the market was rocked off highs after news of a missile attack in Poland. A US official told the Associated Press that the rockets entered NATO member Poland, killing two people. It was not known where the rockets came from. Polish officials have not confirmed a report that the missiles were Russian.

Russia said the reports were a “deliberate provocation aimed at escalation”. The reported strike in Poland came amid a much larger flurry of attacks in Ukraine, one of the largest in the Russia-Ukraine war so far.

The Nasdaq falls off highs as capitals explode

The Nasdaq closed at the highs of the day but was still up 1.5%. Datadog (DDOG) stood out as it climbed 10.2%.

The S&P 500 gained 0.9%. Financial SVB (SIVB) was strong here, up 9.2%.

The S&P 500 sectors were mostly positive, with technology and communication services posting the best gains. Health and materials were the only areas to close negatively.

Small-caps impressed, with the Russell 2000 ending the day up 1.5%.

The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, was also strong. It was up 1.4%.

Dow Jones today: Apple shares, Nike Shine

The Dow Jones Industrial Average was off the highs but managed to get out of the red. While slightly positive, it was essentially flat.

Outside of Walmart, Apple (AAPL) was among today’s best Dow Jones performers. Its 1.2% gain saw it approach its 200-day moving average.

Nike (NKE) had an even better session, jumping 2.2%.

down, UnitedHealth (UNH) struggled, shedding 2.1%. Insurer Travelers (TRV) also lagged, down 1.8%

Walmart earnings boost retail stock

Walmart stock was the best on the Dow Jones today. It got a boost thanks to its earnings report early Tuesday.

The company reported EPS up 3% to $1.50 per share, while revenues grew 8.7% to $152.8 billion

Analysts had expected Walmart to report third-quarter EPS of $1.32 on revenue of $147.67 billion. Comparable in-store sales increased by 8.2% overall, while the e-commerce segment grew by 16%.

Walmart stock advanced within a consolidation pattern after gaining 6.5%. The buy point for Dow Jones stock here is 160.87, shows MarketSmith analysis.

Other retail stocks have also received a boost.

Objective (TGT) increased by 4%, BJ’s Wholesale clubs (BJ) advanced 3% while Costco wholesale (COST) increased by 3.3%.

New Warren Buffett stock rockets

Taiwan Semiconductor shares rose Tuesday on news that Warren Buffett was being driven Berkshire Hathaway (BRKB) has acquired shares in the company.

The company bought about 60 million shares worth more than $4.1 billion, according to the company’s latest 13F filing.

TSM stock closed the session near the highs gaining 10.5%. It has now broken out away from its 50 day moving average and is approaching the 200 day line.

In October, Taiwan Semi, also known as TSMC, the world’s largest contract chip maker, recorded a beat-and-raise in the third quarter, challenging weakness in the chip industry.

It’s not Warren Buffett’s only new stock, however. Berkshire Hathaway has also opened positions in Louisiana Pacific (LPX) and Jefferies Financial (JEF). LPX shares rose 7.8% while Jefferies rose 2.1%.

Donald Trump SPAC diving

The acquisition of SPAC Digital World was down sharply ahead of Trump’s expected announcement of his presidential bid on Tuesday. He is expected to make his announcement at 9:00 PM ET from his Mar-a-Lago estate.

DWAC stock finished the session near the day’s lows, tumbling 8.8%. It’s down about 51% for the year, but is off 12-month lows.

The stock is in the bottom 16% of stocks in terms of stock market performance over the past 12 months.

The fate of Digital World Acquisition, the Trump-linked special purpose acquisition firm, remains up in the air.

The company, which is seeking to go public with the former president’s Trump Media and Technology Group, is once again banking on a key vote. The shareholder vote on whether to approve an extension of the deadline to complete the merger has been postponed to November 22.

Trump Media and Technology Group’s main product at the moment is the conservative social media site Truth Social, a right-wing alternative to Twitter.

Outside the Dow Jones: 3 stock test entries

A trio of noteworthy names worth considering tested points of purchase.

Tenaris is in a buy zone after clearing a buy point of 34.19 per cup with handle. Steel stock is actionable up to 35.90.

Tenaris is the largest supplier of steel pipes used to build oil and gas wells. Earnings are seen to jump 123% in 2022.

MercadoLibre is also usable after crossing a buy handle point of 1,018.10. The Latin American e-commerce game has seen its RS line peak.

Meanwhile Shift4 Payments is also usable after exiting a standard 51.52 entry.

Payments stock got a boost on news that the Chickasaw Nation, the 13th largest Native American tribe in the United States and operator of 23 casinos and various other businesses in Oklahoma, has selected the company to process payments across its casino venues.

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


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