Dow Jones Industrial Average flattens on Tuesday

• The Dow Jones waffled near the 43,000 handle on Tuesday.
• Equities are grappling with an uptick in yields.
• A lack of confident tone from Fed officials leaves stocks hanging in overbought territory.

The Dow Jones Industrial Average (DJIA) struggled to find its feet near the 43,000 handle on Tuesday. The major index pulling into the midrange as bulls struggled to respond to a near-term decline that kicked off the trading week.

Earnings season is well underway, helping to bolster investor confidence enough to keep losses contained despite equity prices trading deep into overbought territory and most of the market's favored stocks trading at eye-watering ratios. Equity giants Tesla (TSLA) and Coca-Cola (COKE) will report Q3 earnings on Wednesday, with Honeywell (HON) slated for Thursday.

On Tuesday, General Motors (GM) and Philip Morris (PM) handily beat Wall Street expectations, raising their full-year earnings guidance. Meanwhile, Verizon (VZ) flubbed its latest earnings call, with revenue missing expectations.

Dow Jones news

Despite a cautious start to the day, roughly two-thirds of the Dow Jones are trading into the green on Tuesday. Microsoft (MSFT) rose 2.3% to $428.50 per share, followed by retail giant Walmart (WMT), which gained 1.5% to touch $82 per share. On the low side, Verizon (VZ) crumpled 4.5%, declining below $42 per share after flubbing earnings expectations.

Dow Jones price forecast

Despite a near-term pullback, the Dow Jones remains in a firmly bullish pattern, with the major equity index trading well above its 50-day and 200-day Exponential Moving Averages (EMA) at 41,788 and 39,453, respectively. DJIA prices have been grinding higher since August's swing low into 38,400, adding nearly 13% bottom-to-top.

The Moving Average Convergence-Divergence (MCAD) is breaking the needle printing in bullish territory, however a contracting histogram is hinting at slowing bullish momentum that has been underpinning the Dow Jones for most of 2024. Despite a deep overbought print on the MACD, potential for downside price action remains limited with the Dow Jones poised for a sixth consecutive month in the green.

Dow Jones daily chart