Key Stocks to Watch Tuesday: Trends That Could Influence Market Performance for Investors

Watching the stock market is a bit like checking the weather before heading outside—you want to know if you need an umbrella or sunglasses. This news matters because big changes in the market can impact your investments and how much your portfolio grows over time.

What Happened in the Market?

The Dow Jones dropped more than 300 points recently. That means many companies lost value, and investors are paying close attention to what happens next. Some big names shared their latest earnings, which is like companies showing their report cards.

Winners and Losers: Recent Stock Moves

• 3M: Up 5% in three months, but down 10% from its February high.
• General Motors: Down nearly 6% in three months, and 13.5% below its February peak.
• Charles Schwab: Up 10% over three months, but still 4.6% under its recent high.
• Northrop Grumman: Down 20% in three months, and off 32% from March.
• DR Horton: Down 5.6% in three months, and 21.5% lower than September’s high.
• Hasbro: Down 14% in three months, and 24% below its February high.

These ups and downs show why it’s important to know which sectors and companies are rising or falling.

Looking Beyond Big Tech

Jim Cramer, a well-known investor, says people shouldn’t only focus on tech giants like Apple or Nvidia. He’s not telling everyone to sell, but he thinks it’s smart to consider other industries too. He likes companies such as Goldman Sachs, Honeywell Aerospace, Boeing, Wells Fargo, and FedEx because they aren’t as sensitive to tech news or global tech competition.

• Goldman Sachs: Down 8.6% from last week’s high, but up 4.3% in July, and up 31% since March.
• Wells Fargo: Down 11.6% from January, but up 4.5% in July.
• Boeing: Down 17% from January.
• Honeywell Aerospace: Down 32% since June.
• FedEx: Down 11.3% from June, but up 32% in 2026 projections.

These non-tech companies can help balance your portfolio and reduce risk if tech stocks stumble.

Bullish Signs: Tech Still Has Power

• Meta Platforms: Up 14.7% in July, but still 19% off its August 2025 high.
• Apple: Up 12.9% in July, even after a small drop, and recently hit a new all-time high.

Tech stocks can still deliver strong returns, but they can also be bumpy rides.

Trade Tensions: New Tariffs on Canada

Former President Trump said he wants to put a 50% tariff on many Canadian goods, from cement to hockey sticks. Some of these items are made in places like China and Vietnam, but the tariffs would still hit Canadian exports hard. The iShares MSCI Canada ETF (EWC) just hit an all-time high and is up about 26% in a year, showing Canada’s market has been strong despite trade worries.

Momentum Stocks Losing Steam

The iShares MSCI USA Momentum Factor ETF (MTUM) is down almost 12% in July. Its top holdings include Micron, AMD, Broadcom, Intel, and Caterpillar. This suggests that even fast-growing stocks can cool off quickly.

According to a study by the National Bureau of Economic Research, momentum investing works well in some periods but can lead to sudden losses when trends reverse, just like we’re seeing now.

Bulls vs. Bears: The Pros and Cons

• Bulls (Optimists):
  • Some tech and Canadian stocks are hitting record highs.
  • Diversifying outside of tech can help smooth out returns.
  • Companies like Goldman Sachs and FedEx are showing growth potential.
• Bears (Pessimists):
  • Many well-known stocks are down sharply from recent highs.
  • Trade tensions could hurt Canadian and U.S. companies.
  • Momentum strategies are struggling, making it harder to find quick winners.

Investor Takeaway

• Check your portfolio for over-reliance on tech stocks—spread out your bets.
• Watch for new tariffs or trade disputes that could shake up markets.
• Don’t chase momentum blindly; trends can reverse fast.
• Keep an eye on non-tech companies—they might be less risky right now.
• Stay informed with credible sources and review your investment plan regularly.

For the full original report, see CNBC