The Dow Jones Industrial Average rose more than 600 points before paring gains on Tuesday as Goldman Sachs and Johnson & Johnson reported results and global markets posted healthy gains. Netflix revenue is expected after market close.
Stock market today: the earnings season continues
Q3 earnings season continues, with Dow Jones stock results Goldman Sachs (GS) and Johnson & Johnson (JNJ) early Tuesday. netflix (NFLX) will launch its tech earnings after market close.
Goldman Sachs stock jumped 4.5% after beating earnings and sales estimates. Shares of J&J fell more than 1% after the company reported strong results but cut its full-year sales forecast.
Leader in electric vehicles You’re here (TSLA) trimmed gains to around 1% on Tuesday as electric vehicle stocks rallied in early trading. Among the industrialists of the Dow Jones, the titans of tech Apple (AAPL) and Microsoft (MSFT) were also significantly higher after today’s stock market open.
Auto area (AVOID), Cardinal Health (ACH), Molina Health (MS) and Vertex Pharmaceuticals (VRTX) – as well as Dow Jones stocks Chevron (CLC) and Merck (MRK) – are among the best stocks to watch. Keep in mind that the current stock market correction is a time for investors to sit on the sidelines and build watchlists of top growth stocks.
Cardinal Health and Vertex are stocks in the IBD ranking. Merck and Molina Healthcare were featured in this week’s Stocks Near A Buy Zone column, along with two other stock ideas. AutoZone was the IBD title of the day on Thursday. Cardinal Health was Friday’s stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Tuesday’s opening bell, the Dow Jones Industrial Average rebounded 1.8%, trading up nearly 600 points. The S&P 500 gained 1.8%, with Tesla, Target (TGT) and Etsy (ETSY) is trading at the top of the list. The tech-heavy Nasdaq composite rose 1.9% in morning action.
Overseas, Asian markets generally closed with firm gains. In Europe, markets traded sharply higher in afternoon action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.9% and the SPDR S&P 500 ETF (SPY) rose 1.8%.
The 10-year Treasury yield recouped its early losses to trade just above 4%, roughly equal to Monday’s close. US oil prices fell more than 1% on Tuesday, threatening to add to the recent string of losses. West Texas Intermediate futures held just over $83 a barrel.
Stock market rally attempt continues
On Monday, the Nasdaq composite led with an explosion of 3.4%. The S&P 500 rose almost 2.7% and the Dow Jones Industrial Average climbed 1.9%.
Monday’s The Big Picture commented: “Indexes are holding above Thursday’s lows, which for now mark the start of an attempted rally. Resistance testing at their 21-day exponential moving averages comes next. for the big indices. Recent attempts haven’t gone well, so the 21-day lines are definitely worth watching. Also keep in mind that indices are bouncing from oversold levels. is why waiting for a follow-up is the first step in shifting exposure back to equities.
Psychologically, watching the market work through repeated attempts to rally can be a difficult process. Investors want to keep watchlists handy, in order to jump on any trailing day breakouts. But not all follow-ups work, so buying too early or with too much conviction can lead to frustration.
This is why it is important to increase exposure slowly and methodically, as the uptrend is confirmed.
Check out IBD stock listings, like the IBD 50 and stocks near a buy zone, for stock ideas.
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Chevron, Merck
Energy giant Chevron continues to hold above support at its 50-day line and is consolidating below a buy point of 182.50 ahead of the company’s earnings release on Oct. 28. Shares of Chevron rose 0.6% early Tuesday, ignoring falling oil prices.
The CVX stock boasts a solid 98 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Scorecard. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
Merck, member of the Dow Jones and IBD 50, breaks above the 93.12 double-bottom buy point, according to IBD MarketSmith pattern recognition. The relative strength line reached a new high last week. Third quarter results are expected on October 27 before the opening bell.
Merck shares added 0.3% on Tuesday morning and are above the buy point.
4 growth stocks to watch in the currentrent Stock market correction
Main stocks to watch: AutoZone, Cardinal, Molina, Vertex
Auto parts leader and recent IBD Stock Of The Day AutoZone is about 3% off the buying point of 2,362.34 a cup base. Keep an eye out for a potential grip to provide lower entry. AutoZone shares rose 0.2% early Tuesday.
IBD Leaderboard stock and medical leader Cardinal Health are shaping a flat base that has a buy point of 72.38, according to IBD MarketSmith’s chart analysis. Earnings are expected on November 4. Shares rose 1.8% on Tuesday.
Molina Healthcare ended Monday just 2% below the buy point of 361.35 on a flat basis. The stock’s RS line hit a new high last week, confirming that the healthcare stock is a leader to watch. Molina’s earnings are expected on October 26. The Health Department’s stock rose 1.4% early Tuesday.
Biotech leader Vertex Pharmaceuticals continues to build a flat base with a buy point of 306.05 and an early entry at 296.90. Its RS line has reached a new high in recent sessions, a sign of a major stock market outperformance. Earnings are expected on October 27. The shares traded up 1.8% on Tuesday morning.
Netflix results are expected Tuesday after the close of trading. The streaming giant’s adjusted earnings are expected to fall 33% to $2.14 per share on revenue of $7.83 billion.
Netflix shares are building a double bottom basis with a buy point of 250.49. The stock is around 65% off its 52-week high.
Join the IBD experts as they analyze the top stocks in the current stock market rally attempt on IBD Live
Tesla stock jumped 7% on Monday, nearly erasing Friday’s 7.55% drop. On Friday, stocks closed at their lowest level since June 2021. Despite Monday’s rise, the stock is still around 47% off its 52-week high. Tesla stock climbed 1.1% on Tuesday.
The electric vehicle giant’s third-quarter results are expected on Wednesday evening. Tesla is expected to earn an adjusted $1.01 per share on sales of $22.1 billion.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 2.9% on Monday, rebounding from Friday’s 3.2% selloff. Still, stocks are around 23% off their 52-week high and below their 50- and 200-day lines. AAPL stock advanced 2.7% on Tuesday morning.
Microsoft climbed 3.9% on Monday, continuing its rebound from last week’s 52-week low. The software giant is around 32% off its 52-week high. Shares rose 2.3% on Tuesday morning as the company reportedly cut nearly 1,000 jobs. Meanwhile, Barclays maintained an overweight rating on Dow Jones stock, reducing the price target from 335 to 310.
Apple’s earnings are expected on October 27, while Microsoft’s are expected on October 25.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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