Major indexes tried to turn positive but struggled Tuesday as Federal Reserve Chair Jerome Powell spoke out on the future path of monetary policy. Among individual stocks, Tesla (TSLA) surged on a deliveries beat while Amazon.com (AMZN) was steady despite a bullish call. And Super Micro Computer (SMCI) turned in a solid early gain on the stock market today.

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The Dow Jones Industrial Average was down 0.1% while the tech-heavy Nasdaq composite was up 0.1%. Chip stock ON Semiconductor (ON) fared well here as it rose more than 2%.

Meanwhile, the S&P 500 flirted with break-even territory. Artificial intelligence play Super Micro Computer stood out as it popped around 3%. Eli Lilly (LLY) lagged, however, as it fell around 3%.

S&P 500 sectors were mixed. Consumer discretionary and real estate fared the best while technology and health care were the worst performers.

Small caps were higher after yesterday’s drawdown, with the Russell 2000 rising 0.2%. The Innovator IBD 50 ETF (FFTY) was struggling though, falling 0.7% on the stock market today.

Fed Chair Powell Speaks Out

Fed Chair Powell spoke out on the future path of interest rates at the European Central Bank forum Tuesday, and said that “significant progress” was made on bringing down both core and headline inflation.

“Sitting here last year there was a lot we didn’t know,” Powell said. “We didn’t know we were about to embark on a period of seven months of much lower inflation readings, we didn’t realize that the second half of last year was going to be an extraordinary year from a growth standpoint and also from the same point of the labor, so things actually worked out in the second half of last year in a remarkable way.”

He said that in the first half of 2024 the U.S. “continued to have solid growth” as well as a “a labor market that’s still strong, though we’ve seen a continued rebalancing in the labor market.” He also said that inflation looks to be back on a disinflationary trend after pausing in the first quarter.

“I think the last reading, and the one before it to a lesser extent, do suggest that we are getting back on a disinflationary path. We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of loosening policy,” Powell said. “What we would like to see is more data like what we’ve been seeing recently. We would also like to see the labor market remain strong. We’ve said that if we see the labor market unexpectedly weakening that is also something that could call for a reaction.”

Dow Jones Today: Apple Stock Pops

Apple fared best among stocks on the Dow Jones Industrial Average, turning in a gain of nearly 1%. The stock is now extended past a cup base entry of 199.62.

3M (MMM) and Honeywell International (HON) also outperformed on the much-watched index.

Nike (NKE) lagged the most as it continues to suffer following its dreadful earnings report, skidding nearly 2%. Verizon Communications (VZ) also dropped, falling more than 1%.

Stock Market Today: Tesla Surges On Deliveries Beat

Tesla bears were licking their wounds in early action. Tesla stock surged nearly 5% after the firm beat analyst views on deliveries.

The electric-vehicle giant reported 443,956 deliveries in the second quarter, easily surpassing expectations for 420,000 to 425,000. While this cleared Wall Street views, it also came in below the 466,000 EVs delivered in the second quarter of 2023.

Tesla also reported Tuesday that it deployed 9.4 gigawatt-hours of energy storage products in the second quarter. This was the firm’s highest quarterly deployment to date.

Tesla stock is now extended from a 191.08 handle buy point, according to MarketSurge chart analysis. The buy range ran as high as 200.63. Shares were making gains ahead of the key announcement, as the stock rose in each of the five previous sessions.

Amazon Nears AI ‘Inflection Point’

Elsewhere, Mizuho analyst James Lee named another Magnificent Seven stock, Amazon, as a “top pick” in a note to clients. Lee gave the stock a price target of 240.

“Gen-AI projects are nearing an inflection point, with external-facing models six months away from commercial deployments,” Lee said in his note.

With the company’s large base of customers, he expects “inferencing activity should accelerate meaningfully” which increased his conviction in the firm’s cash cow Amazon Web Services business.

Amazon stock was nearly flat on the stock market today. It is trading in a buy zone above a flat base entry of 191.70.

The stock has a Composite Rating of 93 from Investor’s Business Daily and is a member of the prestigious IBD Leaderboard list of top growth stocks.

Stock Market Today: Stocks Near Buy Points

Financial software play Alkami Technology (ALKT) is flirting with a cup base entry of 29.29, according to MarketSurge analysis.

The stock holds a near-perfect IBD Composite Rating of 98. Earnings performance is solid, with its Earnings Per Share Rating coming in at 80 out of 99. It is in the top 5% of issues in terms of price performance over the past 12 months.

Banking giant Goldman Sachs (GS) is nearing a flat-base entry of 471.48 on the stock market today. The relative strength line is bending higher again after a dip.

Overall performance is good, with its IBD Composite Rating coming in at 97. Big Money has been snapping up shares of late, with its Accumulation/Distribution Rating sitting at B-.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.

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