The Dow Jones Industrial Average fell Tuesday, as investors digested a number of big earnings results. Meanwhile, chip stock leader Nvidia jumped on an analyst upgrade, while Netflix earnings are due out after the close.
Key earnings reporters Tuesday morning include Bank of America, Goldman Sachs, Johnson & Johnson and Lockheed Martin. Along with Netflix, Intuitive Surgical reports after the close.
Bank of America shares rallied 1.5% on better-than-expected first-quarter earnings, while Goldman Sachs dived 3.5% on weak revenue results. JNJ stock lost 1.1% in morning trade. Finally, Lockheed shares rose 1.8% in early trade.
Stock Market Today
Graphics-chip maker Nvidia jumped 2.2% after HSBC upgraded the stock from reduce to buy, with a raised price target of 355 from 175. Nvidia is an IBD Leaderboard stock.
Electric-vehicle giant Tesla moved down 0.1% in early trade ahead of its first-quarter earnings report, due Wednesday. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Five Below, IBD Leaderboard watch list stock Floor & Decor, Lululemon Athletica and Vertex Pharmaceuticals — as well as Dow Jones stocks Cisco Systems, JPMorgan Chase, Nike and Visa — are among the top stocks to buy and watch with the ongoing market rally.
JPMorgan and Lululemon 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 fell 0.3%, and the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite advanced 0.3% in morning trade, with Nvidia and ASML Holding leading the index.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.6%, while the SPDR S&P 500 ETF traded up 0.3% early Tuesday.
The 10-year U.S. Treasury yield on Tuesday traded up to 3.6%. Last week, the 10-year yield rebounded from its lowest level since mid-September.
U.S. oil prices continued to ease from their April 12 high above $83 a barrel. West Texas Intermediate futures traded between $80 and $81 a barrel early Tuesday. Year to date, oil prices are just about even.
Stock Market Rally
On Monday, the Dow Jones Industrial Average rose 0.3%, with Walgreens Boots Alliance and Boeing the big winners. Walgreens stock rallied 1.7%, while Boeing shares climbed 1.6%. The S&P 500 and the tech-heavy Nasdaq composite each climbed 0.3%.
Monday's Big Picture column commented, "The Nasdaq reversed higher for a 0.3% gain Monday. But the index faces resistance around 12,250 at a time when it's starting to lag. Although it continues to lead the stock market this year, the Nasdaq's relative strength line slipped the past three weeks or so."
Now is an important time to read IBD's The Big Picture column with the stock market in an uptrend.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Cisco Systems, JPMorgan, Nike, Visa
Cisco Systems remains squarely below a flat base's 51.84 buy point after a 0.5% fall Monday. But there is no sell signal yet, according to IBD MarketSmith pattern recognition. CSCO stock topped the entry on March 31. Shares inched higher Tuesday.
JPMorgan shares rose 0.8% Monday, holding about 4% below a flat base's 144.44 buy point in the wake of Friday's earnings-fueled surge. JPM stock dipped 0.1% early Tuesday.
Nike shares rose 0.2% Monday, still above their 50-day line. The stock is just above a 126.16 early entry and nearing a 131.41 flat-base buy point. NKE stock moved up 0.6% in early trade.
Visa shares remains in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. V stock rose a fraction in early morning trade.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Five Below, Floor & Decor, Lululemon, Vertex
Five Below declined 1.7% Monday, extending a losing streak to four sessions and closing below the 50-day line. Shares are now sharply below their 212.66 buy point in a flat base. Further weakness will likely trigger the 7%-8% loss rule. FIVE stock inched higher Tuesday.
Backstory: On March 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed out 2022 with an earnings and revenue beat. For the fourth quarter, Five Below earnings popped 23% to $3.07 per share, ending a three-quarter string of year-over-year declines.
Floor & Decor remains just shy of a cup-with-handle's 99.47 buy point, with a 0.4% loss Monday. FND shares climbed 1% early Tuesday.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD Leaderboard watchlist stock Lululemon is just shy of a 371.36 buy point in a cup with handle. Shares rallied 1.3% 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.
Vertex Pharmaceuticals is trading in the 5% buy range above a cup base's 325.29 buy point that goes up to 341.55. VRTX stock dropped 0.8% Tuesday.
Backstory: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.
Learn How To Time The Market With IBD's ETF Market Strategy
Stocks To Buy And Watch In Stock Market Rally
These are four top stocks to watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ServiceNow | 482.43 | Cup with handle | |
| Nike | 131.41 | Flat base | |
| Visa | 230.15 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of April 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 1.1% Monday, rebounding from Friday's modest decline. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key level. Now, the stock is seeing some resistance at that area, in a holding pattern ahead of its first-quarter earnings report on Wednesday. A decisive retake would be bullish for the stock's immediate prospects. The stock closed Monday 50% off its 52-week high.
TSLA stock edged lower Tuesday morning, still looking to add to Monday's gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose a fraction Monday. They remain solidly above a 157.48 buy point. AAPL stock tacked on 0.6% Tuesday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares are at the top of the buy range past a flat base's 276.86 buy point, with a 0.8% rise Monday. The 5% buy area goes up from the buy point to 290.70. And on Tuesday, MSFT stock rose 0.6%. The company plans to report its fiscal second-quarter results on April 25.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
