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

The Dow Jones industrial average closed lower after reversing after reports of rockets landing inside Poland. New Warren Buffett holding Taiwan Semiconductor (TSM) rose while Donald Trump SPAC Digital World Acquisition (DWAC) recoiled from the expected announcement of a second Trump presidential bid.


Strong Walmart Gains ( WMT ) helped boost retail stocks. Meanwhile, several notable stocks tested buy points, including MercadoLibre (MELI), Tenaris (TS) oath Shift4 payments (FOUR).

Volume increased on both the Nasdaq and the New York Stock Exchange, according to preliminary figures.

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

Markets were given an early boost by encouraging the producer price index. Producer prices rose 8% in October, below September’s 8.5% and also below the 8.3% consensus estimate. Core prices rose by 6.7%, below 7.2% in September and below the 7.2% consensus.

But the market was shaken after the announcement of a missile attack in Poland. A US official told the Associated Press that missiles had entered Poland, a NATO member, killing two people. The origin of the missiles was not known. Polish officials have not confirmed the report that the missile was Russian.

Russia has claimed the reports are a “deliberate provocation aimed at escalation”. The announced strike in Poland came amid a much wider strike attack in Ukraine, one of the biggest wars between Russia and Ukraine to date.

Nasdaq Off Highs As Small Cap Pops

The Nasdaq closed at the highs of the day but still rose 1.5%. Data dog (DDOG) was the standout as it rose 10.2%.

The S&P 500 rose 0.9%. SVB Finance (SIVB) was strong here, rising 9.2%.

S&P 500 sectors were mostly positive, with technology and communications services the biggest gainers. Health and materials were the only areas to close negative.

Small caps took a hit, with the Russell 2000 ending the day up 1.5%.

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

Dow Jones today: Apple shares, Nike Shine

The Dow Jones Industrial Average was no higher but managed to recover from the red. While slightly positive, it was basically flat.

Besides Walmart, Apple (AAPL) was among the top performers on the Dow Jones today. Its gain of 1.2% moved it closer to its 200-day moving average.

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

On the downside, UnitedHealth (UNH) struggled to give up 2.1%. Insurer Tourists (TRV) was also behind, down 1.8%

Walmart’s profit boosts retail stocks

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

The company reported EPS of 3% to $1.50 a share while revenue rose 8.7% to $152.8 billion

Analysts had expected Walmart to post third-quarter earnings of $1.32 on revenue of $147.67 billion. Sales at comparable stores increased by 8.2% overall, while e-commerce grew by 16%.

Walmart shares rose within a consolidating pattern after rising 6.5%. The buy point for the Dow Jones stock here is 160.87, MarketSmith analysis shows.

Other retail stocks also gained.

target (TGT) rose 4%, BJ’s Wholesale Club (BJ) rose 3% meanwhile Costco Wholesale (COST) rose 3.3%.

New Warren Buffett Stock Rockets

Shares of Taiwan Semiconductor rose on Tuesday on news that Warren Buffett was taking over Berkshire Hathaway (BRKB) took up shares in the company.

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

TSM stock ended the session near its highs, rising 10.5%. It has now broken out of 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, posted a beat-and-rise 3rd quarter, defying weakness in the chip sector.

It’s not the only new Warren Buffett stock, though. Berkshire Hathaway also opened positions in Louisiana Pacific (LPX) oath Jefferies Financial (JEF). Shares of LPX rose 7.8%, while Jefferies gained 2.1%.

Donald Trump SPAC dives

SPAC Digital World Acquisition fell sharply ahead of Trump’s expected announcement to run for president on Tuesday. He is expected to make the announcement at around 9pm ET from his Mar-a-Lago estate.

DWAC stock ended the session near the lows of the day, falling 8.8%. That’s down 51% on the year, but off a 12-month low.

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

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

The company, which is trying to take the former president’s Trump media and technology group public, once again went for a primary vote. A shareholder vote on whether to approve a deadline to complete the merger has been postponed until November. 22.

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

Outside the Dow Jones: 3 stock test entries

A trio of notable names worth considering tested purchase points.

Tenaris is in a buy zone after clearing a cup-with-handle buy point of 34.19. The steel stock is operable up to 35.90.

Tenaris is the largest producer of the steel pipes used to build oil and gas wells. Profits are expected to increase by 123% in 2022.

MercadoLibre is also in action after passing a handle buy point of 1,018.10. E-commerce in Latin America has seen its RS line.

Meanwhile, Shift4 Payments is also operational after being cleared of 51.52 standard transactions.

Payments stocks got a boost on news that the Chickasaw Nation, the 13th largest American Indian tribe and operator of 23 casinos and various other businesses in Oklahoma, has selected the company to process payments at all of its casino locations.

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


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