The Dow Jones Industrial Average dropped Tuesday, as Wall Street digested another wave of big earnings reports. Up next, streaming giant Netflix is due to report after the market closes.
After the opening bell, the Dow Jones Industrial Average lost 0.2%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite added 0.1% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.1%, while the SPDR S&P 500 ETF inched higher.
The 10-year Treasury yield ticked up to 4.14% Tuesday morning. The 10-year had dropped to 4.09% Monday, snapping a five-day win streak.
Further, oil prices paused Tuesday after Monday's gains, as West Texas Intermediate futures fell nearly 1%. WTI futures held above $74 a barrel.
Earnings Movers; Netflix Set To Report
Key earnings movers Tuesday morning include 3M, D.R. Horton, General Electric and Halliburton. Also on the roster were Johnson & Johnson, Procter & Gamble, United Airlines and Verizon Communications.
3M stock plunged more than 9% in morning action, while D.R. Horton shares tumbled nearly 6%. GE stock sold off 6%, as Halliburton shares inched higher.
J&J stock lost 2%, while Procter & Gamble shares moved up nearly 6%. Finally, United leapt more than 8% as Verizon surged nearly 4% in early trades.
After the market close, Intuitive Surgical and Netflix will report their quarterly results.
Intuitive Surgical is extended past a 318.26 buy point, while NFLX stock is holding just above a 482.70 entry.
Dow Jones Hits New High
On Monday, the Dow Jones Industrial Average climbed 0.4%, while the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite climbed 0.3%.
Monday's Big Picture column commented, "Coupled with slightly higher volume on the New York Stock Exchange, the S&P 500 added a distribution day. That's the sixth day of heavy volume losses on the index, which is a red flag for the stock market."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch
Magnificent Seven player Amazon, along with DraftKings, MercadoLibre, Novo Nordisk and Spotify — plus Dow Jones components American Express, Amgen and Merck — are among the best stocks to buy and watch in the current market rally.
MercadoLibre and Spotify were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Merck Attempts Breakout
Credit card leader American Express bounced back out of buy range, with a 1% rally Monday. Shares are now just out of the buy range past a 175.31 buy point in a cup with handle. AXP stock ticked up 0.2% Tuesday morning.
Biotech leader Amgen rose 0.8% Monday, hitting a new recent highs and moving further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock inched lower early Tuesday.
Drug maker Merck is trying to break out past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares finished just below their entry amid a 0.5% gain Monday. MRK stock lost 1.1% Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
DraftKings Eyes Buy Point
IBD Leaderboard stock Amazon reversed down 0.4% Monday, still well beyond a cup base's 145.86 entry, according to IBD MarketSmith. AMZN stock gained 0.3% Tuesday morning
Sports-betting giant DraftKings extended last week's gains Monday, climbing nearly 1%. The recent gains put the stock in an early buy zone. Meanwhile, a double-bottom base has an official buy point at 38.97. DKNG stock rallied 2.2% Tuesday.
MercadoLibre is moving out of buy range past a flat base's 1,660 buy point, as shares climbed another 1.7% Monday. MELI stock rose 0.5% early Tuesday.
Weight-loss drug maker Novo Nordisk ended Monday down 1.4%, giving up its 105.69 flat-base buy point. NVO stock slipped 1.3% early Tuesday.
IBD SwingTrader stock Spotify closed Monday above a 202.88 buy trigger in a flat base, with a 0.5% rise. SPOT stock moved up 0.7% Tuesday morning.
Best Bets In Today's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| American Express | 175.31 | Cup with handle | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Jan. 22, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia dropped 0.4% and Tesla rose 1.8% in morning action Tuesday.
Nvidia moved up 0.3% Monday, further out of buy range past a 505.48 buy point in a flat base.
Tesla stock lost 1.6% Monday, at its lowest level since mid-November. Tesla stock sits sharply below its 50- and 200-day moving averages. The electric-vehicle giant's earnings are due late Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Tuesday's stock market open.
Apple stock rallied 1.2% Monday, further above its 50-day line. A bullish move Friday placed the stock in an aggressive buy area. A new official buy point has emerged at 199.62 due to a flat base. Shares tacked on 0.4% early Tuesday.
Microsoft stock moved down 0.5% Monday, still holding above a flat base's 384.30 buy point. MSFT was a recent IBD Stock Of The Day. And the software giant inched down 0.2% Tuesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
