The Dow Jones Industrial Average dropped Tuesday morning as a busy week of first-quarter earnings reports gathered momentum. Shades of the March banking panic flared, as First Republic Bank crashed after reporting a $72 billion plunge in total deposits during the first quarter. Meanwhile, tech titans Google-parent Alphabet and Microsoft will report late Tuesday.
First Republic stock unraveled 30% after total deposits cratered 35.5% from last year to $104.5 billion as of March 31. Deposits fell despite a $30 billion cash infusion from the biggest banks. Analysts polled by FactSet projected deposits dropping to $145 billion.
Also late Monday, Cadence Design Systems beat Wall Street's targets for the first quarter but disappointed with its outlook for the current period. Cadence shares lost 7% in early trade.
Early Tuesday, General Electric, General Motors, Halliburton, McDonald's, PepsiCo, PulteGroup, Spotify, United Parcel Service and Verizon Communications were key earnings reporters.
General Electric shares reversed 0.8% lower in morning trade, while GM stock raced nearly 3% lower. Halliburton declined nearly 2%, as McDonald's moved down 0.1%. PepsiCo shares rose 1.5%. PHM stock was up 2.8%, while SPOT stock jumped 5%. Finally, UPS skidded 8.5%, while Verizon gave up 0.5% in morning action.
Google-parent Alphabet and Microsoft will report late Tuesday.
Stock Market Today
Electric-vehicle giant Tesla dropped more than 1% Tuesday morning as it angles toward a fourth-straight weekly decline. Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.
Crocs, DraftKings, IBD Leaderboard stock Las Vegas Sands and IBD SwingTrader stock Lululemon Athletica — as well as Dow Jones stocks JPMorgan Chase, Nike and Visa — are among the top stocks to buy and watch with the ongoing market rally.
Nike and DraftKings were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average lost 0.3%, and the S&P 500 fell 0.7%. The tech-heavy Nasdaq composite dropped 0.9% in morning action, with Cadence riding the index's biggest loss.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.9%, while the SPDR S&P 500 ETF traded down 0.8% early Tuesday.
The 10-year U.S. Treasury yield on Tuesday traded down to 3.43%. Over the last two weeks, the 10-year yield rebounded from its lowest level since mid-September.
U.S. oil prices threatened to snap a two-day rebound, declining nearly 1% Tuesday morning. West Texas Intermediate futures traded just above $78 a barrel, after pulling back from an April 12 high above $83 a barrel.
Stock Market Rally
On Monday, the Dow Jones Industrial Average rose 0.2%, with Chevron one of the big winners. CVX stock rallied 1.4%. The S&P 500 rose 0.1%, while the tech-heavy Nasdaq composite lost 0.3%.
Monday's Big Picture column commented, "On Monday, indexes remained quiet and directionless, as if holding their breath for this week's reports. Roughly one-third of the S&P 500 companies will announce quarterly results this week."
Now is an important time to read IBD's The Big Picture column with the stock market in an uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares gained 0.1% Monday, holding steady near a flat base's 144.44 buy point and above the 50-day moving average, according to IBD MarketSmith pattern recognition. JPM stock lost 0.9% early Tuesday.
Nike shares rose 1.2% Monday, still above their 50-day line and approaching a cup-with-handle's 127.59 buy point. NKE stock moved down 0.3% in early trade.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. Visa reports fiscal second-quarter results late Tuesday. V stock rose 0.3% in early morning trade.
3 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Crocs, DraftKings
Crocs shares climbed 2.7% Monday, extending a win streak to seven sessions and finishing extended past a cup base's 143.60 buy point, according to IBD MarketSmith. The 5% buy range went up to 150.78. The company plans to report first-quarter earnings on Thursday. CROX stock dropped 1.2% early Tuesday. The company plans to report first-quarter earnings on Thursday.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
DraftKings broke out above a cup base's 21.72 buy point last week, but gave up the entry during Monday's 2.55% drop. The 5% buy zone tops out at 22.81. DKNG stock rose 0.4% Tuesday morning.
Backstory: Boston's DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. Sports-betting prospects look strong, with around 20% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. DraftKings reports Q1 results on May 4.
Las Vegas Sands, Lululemon
IBD Leaderboard stock Las Vegas Sands moved out of the 5% buy range above a 60.40 buy point in a cup with handle during Monday's 1.4% rally. The buy zone topped out at 63.42. LVS stock was down 0.8% Tuesday morning.
Backstory: Last week, Las Vegas Sands smashed earnings expectations for the first quarter and signaled a "robust recovery" in China's Macau gaming hub. The casino stock posted earnings of 28 cents per share, up from a net loss of 40 cents a year ago. Revenue vaulted nearly 125% to $2.12 billion.
IBD SwingTrader stock Lululemon moved further past a 371.36 entry in a cup with handle, with a near-1% rise Monday. Shares fell 0.4% Tuesday morning.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Crocs | 143.60 | Cup base | |
| Nike | 131.41 | Flat base | |
| Visa | 230.15 | Cup with handle | |
| JPMorgan | 144.44 | Flat base |
Source: IBD Data As Of April 25, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock slid 1.5% Monday, hitting its lowest level since Jan. 26. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level. The stock closed 55% off its 52-week high on Monday.
TSLA stock threatened to add to Monday's losses, trading down 1.4% in early Tuesday trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gained 0.2% Monday. They remain solidly above a 157.48 buy point and at the top of the buy range that runs up to 165.35. AAPL stock rose 0.3% Tuesday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares are still above a flat base's 276.86 buy point despite a three-day losing streak, as they dropped 1.4% Monday. The 5% buy area goes up from the buy point to 290.70. Earnings are due out late Tuesday. And on Tuesday, MSFT stock lost 1%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
