The Dow Jones fell Tuesday in choppy trading as investors continue to digest the intensifying U.S.-Iran tensions. The Nasdaq 100 found strength in chip stocks, with top gainers like Microchip Technology (MCHP) and Micron (MU). Meanwhile, Tesla (TSLA) rose 4% to reach new all-time highs on the stock market today.
XAmong the major Dow stocks, oil giants Chevron (CVX) and Exxon Mobil (XOM) each closed down around 1%.
The Stock Market Today
The Dow Jones Industrial Average fell 0.4%, while the S&P 500 dipped 0.1%. The Nasdaq, however, showed some strength, rising 0.1%. Volume was lower on both major exchanges vs. Monday, according to preliminary data.
Even though tension remains high between the U.S. and Iran, investors don't see the crisis as reason to sell off stocks in heavy volume just yet. The Dow Jones and other major indexes all currently trade less than 1% from record highs.
Safe-haven assets continue to gain strength after the killing of top Iranian Maj. Gen. Qassem Soleimani by the U.S. on Friday. Gold continues its advance with its longest streak of gains in two years as prices hit their highest finish since April 2013. SPDR Gold Shares ETF (GLD) rose 0.4% on the stock market today.
Silver and gold miners on the IBD 50 list were active — specifically Royal Gold (RGLD) and Kirkland Lake Gold (KL) both up a little more than 1%.
The growth-stock focused Innovator IBD 50 ETF (FFTY) edged 0.1% higher.
Chip Stocks Rally
Among other ETFs, VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) rose nearly 2% each.
A handful of chip stocks helped boost the Nasdaq after Microchip Technology raised its quarterly guidance for the second time in one month. The stock jumped up more than 5% higher and is now extended past its 5% buy zone. Shares broke out from a flat base with a 101.67 buy point in December.
Additionally, Micron Technology jumped 8% on Tuesday after an upgrade from Cowen & Co. The stock currently trades well above its 5% buy zone and is nearing the 20% profit taking zone from the recent cup-with-handle 50 buy point.
Tesla Stock
Tesla swung 4% higher after announcing plans to build its Model Y sport utility vehicle at the new Shanghai gigafactory, alongside the Model 3 sedans.
Shares are currently extended from a handle entry in a large cup pattern. Tesla reclaimed both its 50-day and 200-day lines in October. Shares have been trending higher since. The relative strength line is at new highs; Tesla's IBD-given RS Rating of 98 out of 99 is also a bullish sign.
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