The Dow Jones Industrial Average fell early Wednesday, despite a strong early lead from Netflix after strong quarterly results. Airline stocks and chip equipment makers also rallied on earnings news. Next, Tesla’s revenue is expected after the close.
Stock market today: the earnings season continues
The release of third quarter results continued, with the results of ASML (ASML), hugue baker (BKR), Intuitive surgery (ISRG) United Airlines (UAL), as well as Dow Jones stocks Procter & Gamble (PG) and Travelers (TRV).
You’re here (TSLA) will report after market close. Shares traded down 0.5% on Wednesday morning
Shares of ASML jumped more than 4%, while Baker Hughes soared 7%. Intuitive Surgical reported better-than-expected third-quarter earnings and sales results, as the stock jumped 11% after the market opened. United Airlines topped third-quarter earnings and revenue, pushing shares up about 5%.
Among Dow Jones earnings, P&G shares rose 2.7% and Travelers 1.1%. Dow Jones Stock IBM (IBM) is to report after the close. Elsewhere, tech titans Apple (AAPL) and Microsoft (MSFT) were squarely lower 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 ongoing stock market rally attempt is the perfect time for investors to build and hone their watchlists of the highest 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 Wednesday’s opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 lost 0.6%. The tech-heavy Nasdaq composite fell 0.8% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.7% and the SPDR S&P 500 ETF (SPY) fell 0.5%.
The 10-year Treasury yield rose to 4.1% on Wednesday morning, climbing back above 4% and hitting a new 52-week high.
US oil prices rebounded more than 1% on Wednesday, looking to end a losing streak. West Texas Intermediate futures held just over $84 a barrel. Last week, WTI futures rose above $93 a barrel.
Stock market rally attempt continues
On Tuesday, the Dow Jones Industrial Average and the S&P 500 both climbed 1.1%. The Nasdaq followed with a 0.9% rise, after paring an early jump of 2.8%.
Tuesday’s The Big Picture commented: “When the S&P 500 and Nasdaq showed gains north of 2% in the morning, the session felt like a tracking day taking shape on day four of the attempted rally. But the S&P 500’s 1.1% gain didn’t qualify. That’s good, because you still have to look far to find actionable setups among major stocks.”
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 October 28. An early entry at 166.93 is also in play. Chevron shares reversed early losses and added 0.8%.
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.
Dow Jones and IBD 50 member Merck is in the buy range past the 93.12 double bottom buy point, according to IBD MarketSmith pattern recognition. Keep in mind that the ongoing market correction should keep you out. The stock’s relative strength line reached a new high last week. Third quarter results are expected on October 27 before the opening bell.
Merck shares plunged 0.2% on Wednesday morning.
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 2% off the buy point of 2,362.34 a cup base. Keep an eye out for a potential grip to provide lower entry. AutoZone shares rose 0.3% on Wednesday morning.
IBD Leaderboard and medical leader Cardinal Health stock shapes a cup-with-handle base that has a buy point of 71.22, according to IBD MarketSmith chart analysis. Cardinal stock is only 1% away from new entry. Earnings are expected on November 4. Shares slid 0.1% on Wednesday.
Molina Healthcare ended Tuesday less than 1% 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 0.1% early Wednesday.
Biotech leader Vertex Pharmaceuticals is approaching the buy point of 306.05 on a flat basis and 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. Stocks lost 0.3% on Wednesday morning.
Netflix’s earnings easily beat estimates on Tuesday night and beat Wall Street’s targets for new subscribers in the third quarter.
The streaming giant added 2.4 million subscribers in the September quarter. Three months ago, Netflix said it planned to add 1 million subscribers over the period. Wall Street analysts were looking for 1.08 million new members. Netflix ended the third quarter with 223.1 million total subscribers worldwide.
Netflix stock jumped 10% after Wednesday’s open, opening above the double-bottom buy point of 250.49. The stock closed Tuesday about 66% 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 pared its gains to just 0.4% on Tuesday, but still rose for the second straight session. Last week, stocks closed at their lowest level since June 2021. Despite a two-day winning streak, stocks remain around 47% off their 52-week high. Tesla stock traded down 0.5% on Wednesday.
The electric vehicle giant’s third-quarter results are expected after the market closes. 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 climbed 0.9% on Tuesday after the company supplemented its vacation product lineup with new iPads and an upgraded Apple TV streaming video box.
Still, stocks are around 21% off their 52-week high and below their 50- and 200-day lines. AAPL stock lost 0.5% on Wednesday morning.
Microsoft rose 0.4% on Tuesday, continuing its rebound from last week’s 52-week low price. The software giant is around 32% off its 52-week high. Shares fell 0.6% on Wednesday morning.
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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