Dow Jones Falls Below Key Level; Tesla Eyes Big Lithium, Graphite Plays After Lithium Stocks Crash

Major indexes rose off session lows in afternoon trading on Tuesday. The Dow Jones Industrial Average was down nearly 2% at 3 pm ET, falling below its 50-day moving average while the Nasdaq, which has outperformed so far this year, is trading over 2% lower.


The S&P 500 was also down nearly 2% as well, although its 50-day line remains above its 200-day line — a bullish indicator.

Volume on the NYSE and Nasdaq was higher compared to the same time on Friday.

The small-cap Russell 2000 saw the steepest fall, trading nearly 3% lower.

US Stock Market Today Overview

Index symbols Price Gain/Loss %Change
DowJones (0DJIA) 33181.51 -645.15 -1.89
S&P 500 (0S&P5) 4005.01 -73.86 -1.82
Nasdaq (0NDQC ) 11527.37 -262.37 -2.24
Russell 2000 (IWM) 187.84 -5.24 -2.74
IBD 50 (FFTY) 22.84 -0.46 -1.97
Last Update: 3PM ET 2/21/2023

Crude oil slipped by a fraction and sold at $76.37 per barrel.

The yield on the benchmark 10-year Treasury note surged 11 basis points to 3.94%.

The S&P Global Flash US Composite PMI rose to an eight-month high for services and fell at a lower pace for manufacturing in February, compared to January. The data supports growing optimism that the economy will see a soft landing in 2023.

Existing home sales fell slightly in January and were well below year-ago levels. According to Comerica Chief Economist Bill Adams, “2023 will likely be the slowest year for total home sales — existing and new — in about a decade.”

Dow Jones Leaders Earnings

Dow Jones component Home Depot (HD) fell Tuesday after earnings. The home-improvement giant had earnings of $3.30 per share on revenue of $35.83 billion. Shares nose-dived, undercutting the base and 200-day line.

Dow Jones leader Walmart (WMT) rose nearly 0.5% in afternoon trading, according to MarketSmith chart analysis. A lower outlook after strong earnings of $1.72 per share and revenue of $164 billion pressured the stock, which pared losses in intraday trading in strong volume. It’s building support at its 50-day line.

Stocks Moving Today

Shares of Copart (CPRT) are up over 1% after earnings. The stock is approaching a buy point of 71.03 on a cup-with-handle basis.

Tesla (TSLA) signed a deal to buy Magnis Energy Technologies to get the graphite it needs for its batteries.

Graphite is used in lithium-ion battery anodes. Magnis will enter a three year deal to supply graphite to Tesla from Feb. 2025. The EV giant also has plans to buy lithium company Sigma Lithium (SGML), according to reports. The deal will value SGML at $3 billion. Tesla makes its own batteries and has a lithium processing plant in Texas. Sigma’s raw lithium will likely drive down costs for the EV maker.

Sigma shares fell along with other lithium plays last week but gapped up over 15% after news of the possible buyout. Tesla shares pulled back 3% after an impressive run this year.

Earnings are due for Palo Alto Networks (PANW) after market close Tuesday, with Nvidia (NVDA) set to report Wednesday.

IBD Leaderboard stock Wingstop (WING) also reports Wednesday. WING shares are nearing a buy point of 169.04 on a cup-with-handle basis. PANW is testing its 200-day line. NVDA fell over 2% in afternoon trading Tuesday.

Dow Jones leaders to watch: Salesforce (CRM) in a cup-with-handle base with a 178.94 entry and Disney (DIS), with a 118.28 entry in a cup-with-handle base.

Please follow VRamakrishnan at Twitter for more news on the stock market today.


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