Dow Jones Wavers Amid Poland Attack; Donald Trump SPAC Dives; Warren Buffett Stock Soars

The Dow Jones Industrial Average closed off lows after reversing amid reports that rockets hit inside Poland. New Warren Buffett holding Taiwan Semiconductor (TSM) surged while the Donald Trump SPAC Digital World Acquisition (DWAC) plunged ahead of the expected announcement of another Trump presidential bid.

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Strong Walmart (WMT) earnings helped boost retail stocks. Meanwhile, some notable stocks tested buy points, including MercadoLibre (MELI), Tenaris (TS) and Shift4 Payments (FOUR).

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

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

Markets were boosted early on by encouraging producer price index data. Producer prices were up 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 shaken off highs after a report of a rocket attack in Poland. A U.S. official told The Associated Press that rockets had crossed into NATO member Poland, killing two people. It was not known where the rockets originated. Polish officials have not confirmed a report the missiles were Russian.

Russia has claimed the reports are a “deliberate provocation aimed at escalation.” The reported strike in Poland came amid a much wider barrage of strikes in Ukraine, one of the biggest of the Russia-Ukraine war so far.

Nasdaq Off Highs As Small Caps Pop

The Nasdaq closed off highs for the day but still rose 1.5%. Datadog (DDOG) was a standout as it rose 10.2%.

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

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

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

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

Dow Jones Today: Apple Stock, Nike Shine

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

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

Nike (NKE) had an even better session though as it popped 2.2%.

On the downside, UnitedHealth (UNH) struggled, giving up 2.1%. Insurer Travelers (TRV) also lagged, falling 1.8%

Walmart Earnings Boost Retail Stocks

Walmart stock was the best performer on the Dow Jones today. It was given a boost due to its earnings report early Tuesday.

The company reported a 3% EPS increase to $1.50 per share while revenue grew 8.7%, to $152.8 billion

Analysts had expected Walmart to report $1.32 Q3 EPS on $147.67 billion in revenue. Comparable store sales rose 8.2% overall, while the e-commerce segment expanded 16%.

Walmart stock moved higher within a consolidation pattern after it gained 6.5%. The buy point for the Dow Jones stock here is 160.87, MarketSmith analysis shows.

Other retail stocks also got a boost.

Target (TGT) popped 4%, BJ’s Wholesale Club (BJ) advanced 3% while Costco Wholesale (COST) rose 3.3%.

New Warren Buffett Stock Rockets

Shares of Taiwan Semiconductor soared Tuesday on news that Warren Buffett-led Berkshire Hathaway (BRKB) snapped up shares in the company.

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

TSM stock ended the session near highs as it gained 10.5%. It has now exploded away from its 50-day moving average and is closing in on the 200-day line.

In October, Taiwan Semi, also known as TSMC, the world’s largest contract chipmaker, delivered a Q3 beat-and-raise, defying weakness in the chip sector.

It is not the only new Warren Buffett stock though. Berkshire Hathaway also opened positions in Louisiana Pacific (LPX) and Jefferies Financial (JEF). LPX stock rose 7.8% while Jefferies rose 2.1%.

Futures: Market Runs, More Stocks Flash Buy Signals, But Resistance Looms

Donald Trump SPAC Dives

SPAC Digital World Acquisition was down sharply ahead of Trump’s expected announcement about running for president Tuesday. He is expected to make his announcement at 9 p.m. ET from his Mar-a-Lago estate.

DWAC stock ended the session near lows for the day as it plunged 8.8%. It is 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 special purpose acquisition company linked to Trump, remains up in the air.

The firm, which is trying to take the former president’s Trump Media and Technology Group public, once again punted on a key vote. The shareholder ballot on whether to approve a deadline extension to complete the merger has been pushed out until Nov. 22.

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

Outside Dow Jones: 3 Stocks Test Entries

A trio of noteworthy names worth consideration tested buy points.

Tenaris is in a buy zone after clearing a cup-with-handle buy point of 34.19. The steel stock is actionable as high as 35.90.

Tenaris is the biggest provider of the steel tubing used to construct oil and gas wells. Earnings are seen popping 123% in 2022.

MercadoLibre is also actionable after surging past a handle buy point of 1,018.10. The Latin American e-commerce play has seen its RS line spike.

Meanwhile Shift4 Payments is also actionable after running clear of a 51.52 standard entry.

The payments stock was given a boost by news that the Chickasaw Nation, the 13th largest Native American tribe in the U.S. 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 at @IBD_MLarkin for more analysis of growth stocks.

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