Dow Jones Dips As Boeing Stock Dives On This; These Warren Buffett Stocks Are Near Entries

The Dow Jones Industrial Average fell again as Boeing (BA) dived on Paris Air Show news while Nike (NKE) tumbled on a bearish call. A trio of Warren Buffett stocks are near entries, including Activision Blizzard (ATVI). China stock Alibaba (BABA) plunged amid a management shake-up.

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There was a dearth of breakouts amid the negative action. However, ELF Beauty (ELF) tested a follow-on entry while Medpace (MEDP) and Thomson Reuters (TRI) moved toward buy points.

Treasury yields also reversed. The 10-year yield fell five basis point to 3.72% while the two-year yield slid four basis points to 4.69%, making the yield curve slightly more inverted.

Nasdaq Dips, IBD 50 Bucks Odds

The Nasdaq fared better than the other major indexes but still ended the session down 0.2%. Enphase Energy (ENPH) was among the laggards as it fell 5.4%.

The benchmark S&P 500 ended the day down 0.5%. Tesla (TSLA) impressed here with a 5.3% lift amid the news Rivian Automotive (RIVN) is adopting its charging standard.

The S&P 500 sectors nearly all closed in the red. Consumer discretionary was the only area to post a gain, while energy and materials were the worst laggards.

Small caps struggled, with the Russell 2000 finishing down 0.3%. Growth stocks impressed though, with the Innovator IBD 50 ETF (FFTY) reversing 0.2% higher.

Dow Jones Today: Boeing Stock Dives Amid Paris Air Show

The Dow Jones Industrial Average ended off lows for the day but faded into the close. It dipped 245 points, or 0.7% for the session.

It dipped as Boeing dived 3.5%, closing near the 21-day line, after archrival Airbus (EADSY) secured a big order at the Paris Air Show.

The firm lost out to its European rival on an order for 500 A320 narrow-body jets from IndiGo, the largest plane deal ever.

Boeing stock failed to get a lift despite announcing Air India has finalized a previously reported order for up to 290 new Boeing jets. Boeing also announced that China Airlines firmed up orders for eight 787 Dreamliners, and Algeria-based Air Algerie confirmed an order for eight Max 737 jets.

Nike was also among the worst Dow laggards, falling 3.6%. It is now below the 200-day moving average. It was hit after UBS cut its price target to 145 from 155 even as it maintained a buy rating on the stock. UBS expects the firm’s guidance for fiscal 2024 to come in below expectations.

Other laggards on the index included Intel (INTC), which fell 3.8%.

Leaderboard stock Salesforce (CRM) fared best on the Dow Jones today, lifting 2.5%.

Warren Buffett Stocks Near Entries Amid Japan Move

Berkshire Hathaway (BRKB) announced Monday that subsidiary National Indemnity Co. increased its stake in the Japanese trading firms Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo to average more than 8.5%.

CEO Warren Buffett has spoken of his admiration in the past for the Japanese companies, which he sees as long-term holdings. Berkshire ended Tuesday up 0.1%.

Closer to home, a number of other Buffett stocks are currently trading near entries.

Activision Blizzard sits in a buy zone above a cup-with-handle entry of 81.22, MarketSmith analysis shows. It ended the session down 0.1%.

The stock formed the base after retreating when the proposed Microsoft (MSFT) acquisition hit the skids. Activision’s strong overall performance is reflected in an IBD Composite Rating of 95.

American Express (AXP) has formed a cup base with an ideal entry point of 182.15, though it could soon offer a lower handle buy point.

Floor & Decor (FND) currently sits near an entry of 101.39 and is getting support at its 50-day moving average. The company operates 191 warehouse-format flooring stores and six design studios across 36 states. It holds an EPS Rating of 94 out of 99.

Alibaba Leads These China Stocks Lower

Alibaba stock was slammed after it emerged that CEO Daniel Zhang will step down in September. He will be replaced by the firm’s co-founder, Eddie Wu. In addition, Alibaba co-founder Joe Tsai will take over as chairman of the Chinese e-commerce giant.

The firm is in the midst of restructuring, announcing in March it is to split into six different groups. The six are: Cloud Intelligence, Cloud Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce Group and Digital Media & Entertainment.

BABA stock fell 4.5% and is currently making another test of its 50-day moving average.

Other China stocks were also lower. Rival JD.com (JD) plunged 6.7% while Baidu (BIDU) reversed 1.1% lower.

Homebuilder Stocks Near Entries Amid Data

A couple of noteworthy homebuilder stocks are trading near entries amid more housing data Tuesday.

May housing starts came in at 1.631 million units annualized vs. analyst views for 1.4 million. This was also clear of the revised 1.34 million units in April. Permits of 1.491 million also exceeded the 1.433 million expected.

In addition, the June Housing Market Index came in at 55 vs. the expectations for 50, according to Econoday.

NVR (NVR) topped a flat-base entry point of 5,986.96 before slipping back below it. The homebuilder has a strong Composite Rating of 94 and is in the top 10% of stocks in terms of price performance over the past 12 months.

Meanwhile, Meritage Homes (MTH) is trading in its buy zone above a flat-base buy point of 130.68. All-around performance is also strong here, and MTH stock is up around 42% so far in 2023. Meritage is today’s IBD Stock Of The Day.

Bulls Resist Selling As These Titans Run; 5 Stocks Near Buy Points

Outside Dow Jones: ELF Beauty Tops Buy Point

While there was a lack of breakouts amid the bearish action, a few names made progress.

ELF Beauty cleared a three-weeks-tight follow-on entry of 108.45. Its relative strength line is looking mighty. It closed just below the buy point, up 3% on the day.

BofA Securities, which holds a buy rating on the stock, hiked its price target to 120 From 105.

The cosmetics stock is up a remarkable 94% so far this year. It holds a perfect IBD Composite Rating and is a Leaderboard watchlist name.

Medpace rose 1.6% as it looked to close in on a buy point of 231.63. It holds a best-possible EPS Rating of 99.

Thomson Reuters climbed 0.4% as it seeks to reach a flat-base entry of 133.56. Big Money has been a net buyer of late, with the stock’s Accumulation/Distribution Rating coming in at B. Overall fund ownership of 12% is relatively low, however.

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

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