The Dow Jones Industrial Average fell more than 300 points Wednesday, as Boeing and Microsoft sold off on their quarterly earnings results. Meanwhile, Tesla earnings are due out after the stock market close.
Boeing and Microsoft were headliner earnings Wednesday morning. Boeing shares declined 1.3% on an unexpected fourth-quarter loss. Microsoft dropped 4% after giving a disappointing outlook.
Fourth-quarter earnings season continues, with results from Abbott Labs, ASML and AT&T, Intuitive Surgical and Texas Instruments.
Abbott Labs lost more than 2%, while ASML stock declined 1.9%. AT&T shares jumped 3.8% on mixed fourth-quarter results.
Intuitive reported lighter-than-expected fourth-quarter profit, sparking a 5% fall in early morning trade.
Chipmaker Texas Instruments beat Wall Street's targets for the fourth quarter, but it guided below views for the current period. TXN shares edged higher Wednesday morning.
Stock Market Today
Electric-vehicle leader Tesla traded down more than 3% Wednesday morning ahead of its earnings results after the close. Dow Jones tech giant Apple was lower after today's stock market open.
IBD Leaderboard stock Axon Enterprise, recent IBD Stock Of The Day Etsy, Monster Beverage and Vertex Pharmaceuticals — as well as Dow Jones names Chevron, JPMorgan Chase and Visa — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Axon is an IBD Leaderboard stock. Etsy and Vertex were recent IBD Stocks Of The Day. Axon and JPMorgan were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the tech-heavy Nasdaq composite lost 2.2%, with Intuitive Surgical down more than 5% at the bottom of the list. The Dow Jones Industrial Average moved down 1%, and the S&P 500 lost 1.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 1.7% and the SPDR S&P 500 ETF traded down 1.2% early Wednesday.
The 10-year U.S. Treasury yield ticked lower to 3.43% Wednesday morning, threatening to add to Tuesday's losses. Despite the recent gains, the 10-year yield is on three-week losing streak that saw it hit its lowest level since mid-September.
Oil prices were essentially flat Wednesday, holding near their recent highs. West Texas Intermediate futures traded just above $80 a barrel. Weekly petroleum stockpile data is due out from the Energy Information Administration at 10:30 a.m. ET.
Stock Market Rally
On Tuesday, the Dow Jones Industrial Average rose 0.3%, and the S&P 500 fell 0.1%. The tech-heavy Nasdaq composite lost 0.3% to snap a two-day win streak.
Tuesday's The Big Picture column commented, "In the current stock market environment, exposure between 40% and 60% seems about right. The S&P 500 still has overhead supply issues to work through as the index sits below its recent high of 4,100. The Nasdaq composite, meanwhile, looks poised to make a run at its 200-day moving average (currently around 11,540). But it's still a potential resistance level to watch."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Chevron, JPMorgan, Visa
Energy giant Chevron is rounding out the right side of a cup base with a 189.78 buy point, according to IBD MarketSmith pattern recognition. Keep an eye out for a handle to offer a lower entry. Chevron's fourth-quarter earnings are due Friday. CVX shares fell 1% Wednesday.
CVX stock shows a strong 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Banking giant JPMorgan is just below a 138.76 flat-base buy point following three straight days of gains. JPM shares were down 0.4% Wednesday morning.
Payments leader Visa is trading in buy range above a 220.08 handle buy point in a long pattern. The 5% buy area goes up to 231.08. Visa shares lost 0.8% early Wednesday, ahead of the company's fiscal first-quarter results due on Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Axon, Etsy
Security leader Axon finished Tuesday within striking distance of a 189.72 buy point in a cup-with-handle base following Monday's breakout attempt. Axon shares were down 0.6% Wednesday morning.
Backstory: Formerly known as Taser International, the company has taken advantage of the business opportunity offered by public demands for more oversight of police departments. Its line of body cameras and accompanying software are now market leaders. The Scottsdale, Ariz.-based company also boasts a cloud-based digital evidence platform.
Etsy broke out past a 137.01 buy point in a cup with handle Monday, but fell 1.75% Tuesday to fall back below the entry. If the stock retakes the buy point, the 5% buy area goes up to 143.86. ETSY stock was down 3.3% Wednesday.
Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.
Monster, Vertex Eye Buy Points
Monster Beverage bullishly regained its 50-day line during Tuesday's 2.9% advance. Shares are just 2% away from a flat base with a 104.75 buy point. MNST stock was down 1% Wednesday.
Backstory: Monster Beverage leads an energy-drink duopoly with privately held competitor Red Bull. The company's portfolio of energy drink brands include Monster Energy, Reign and NOS Energy.
Monster dominates energy drinks in the U.S. and claimed a 39% market share last year, according to Jefferies data, resulting in a record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the American energy drink market in 2021. Upstart Celsius, which is on an impressive growth streak, claimed 4.9% of the market.
Wednesday's IBD Stock Of The Day, Vertex Pharmaceuticals, is approaching a 324.85 buy point in a cup base after bullishly retaking its 50-day line in recent sessions. VRTX stock was slightly higher Wednesday.
Backstory: The company is well-known for its cystic fibrosis treatments — a market that Vertex estimates at 88,000 patients. Of those, there are still 20,000 patients who could receive its old-school oral treatments. But analysts are watching for what's new from Vertex, including an updated regimen of three drugs that could strengthen Vertex's position against rival AbbVie.
Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Monster | 104.75 | Flat base | |
| Vertex | 324.85 | Cup base | |
| Axon | 189.72 | Cup with handle | |
| Etsy | 137.01 | Cup with handle | |
| JPMorgan | 138.76 | Flat base | |
| Chevron | 189.78 | Cup base | |
| Visa | 220.08 | Cup with handle |
Source: IBD Data As Of Jan. 24, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock edged higher Tuesday, extending a win streak to three sessions ahead of the company's earnings results after the close. Despite their recent rebound, shares remain sharply below their 50- and 200-day lines. Tesla stock closed Tuesday about 63% off its 52-week high.
Tesla earnings are expected to rise to $1.13 a share on revenue of $24.66 billion, according to IBD data.
Shares of the EV giant threatened to snap its winning streak, trading down more than 1% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied another 1% Tuesday, moving further above their 50-day line. The stock remains around 21% off its 52-week high. Apple will report its quarterly earnings on Feb. 2. AAPL stock traded down 1.7% Wednesday.
Microsoft stock inched lower Tuesday, finishing just above its 50-day line, where it found stout resistance last week. A more decisive retake would be bullish for the stock's prospects, even though shares remain 23% off their 52-week high.
Microsoft earned an adjusted $2.32 a share on sales of $52.7 billion in the December quarter. Analysts polled by FactSet had predicted Microsoft earnings of $2.29 a share on sales of $53 billion. On a year-over-year basis, Microsoft earnings slipped 6% while sales rose 2%. It was the first drop in earnings for Microsoft in five years, since the December quarter of 2017.
Shares were down 4% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
