The Dow Jones Industrial Average and other indexes struggled for gains Tuesday but ultimately ended up in the red by the close. Warren Buffett stock Coca-Cola bubbled higher in a buy zone. And GE Aerospace flew into a buy zone while Spotify Technology rocketed on the stock market today.
Tech-heavy Nasdaq stocks were in positive territory until late, but ultimately ended the day down a fraction. CrowdStrike underwent an apparent dead cat bounce as it rallied nearly 2% following sharp declines the last two sessions. Also, Arm flexed its biceps, surging 5%.
The Dow Jones industrials also reversed and lost 0.1% at the close. There was a near-equal balance of winners and losers on the blue-chip index.
The benchmark S&P 500 switched gears as well, losing 0.2% for the day. Pentair and MSCI were among the best performers in the index, popping 9% and rising nearly 8%, respectively. Pentair cleared an 85.84 buy point.
But United Parcel Service tumbled 12% after it missed earnings views and cut its outlook. In the process, the stock chalked up its worst trading session ever. Its previous record was a 10.3% drop on July 25, 2006, according to MarketWatch.
Meanwhile, S&P 500 sectors were mixed. Consumer discretionary and communication services were strongest while utilities and energy lagged.
Small caps outperformed, with the Russell 2000 up 1.2%. The Innovator IBD 50 exchange traded fund also shined as growth stocks outperformed. It gained 1.4% on the stock market today.
Updated 3:32 p.m. ET
Magnificent Seven: Alphabet, Tesla Earnings Due
The so-called Magnificent Seven stocks were mostly higher, with two names getting set to announce earnings after the bell.
Google-parent Alphabet was off highs for the day but remained up nearly 1% ahead of its quarterly report. Earnings are seen rising 28% to $1.85 a share while revenue is expected to pop 14% to $70.6 billion.
By contrast Tesla, which also reports after the close, lagged most out of this group of stocks. It fell 1% and tested buying support at the short-term, 10-day moving average. Analysts see earnings down 32% to 62 cents a share while revenue is expected to inch up 1% to $25.13 billion.
Nvidia also lagged as it dipped nearly 1%. It is trading below its 21-day exponential moving average but holding above the 50-day line.
Amazon.com fared best as it climbed more than 2%. Meta Platforms, Apple and Microsoft were up all up less than 1% apiece.
Stock Market Today: Another Stock Tests Entry
Recent initial public offering Waystar moved up into a buy zone from a flat base, MarketSurge analysis shows. The ideal entry point here is 23.09.
However investors should be wary about pulling the trigger on such a young stock. The medical software play is also not yet profitable, with its Earnings Per Share Rating at 15 out of 99.
Fund ownership is another red flag. At the moment just 2% of its shares are held by funds, according to MarketSurge data.
The stock started trading back in June. The offering of 45 million shares was priced at 21.50 a share and it now sits above this level.
Futures: Tesla Earnings Miss, Musk Next; Google Rises On Strong Q2
Southwest Airlines Stock Lower Amid FAA Move
Southwest Airlines was off session lows, but remained down more than 1% amid an audit by the Federal Aviation Administration.
The air-safety regulators are launching the probe following a string of recent incidents. The Wall Street Journal reported these include flights descending to low altitudes too early as well as a flight taking off from a closed runway.
The stock, which has struggled to gain traction in 2024, trades below its 50-day and 200-day moving averages.
Updated 2:17 p.m. ET
Spotify Stock Rockets
Streaming music stock Spotify was one of the top performers on the stock market today after it posted record profits. It remained up more than 11%.
The firm swung from a loss of $1.69 per share to earnings of $1.43, easily topping estimates. Revenue popped 18% to $4.1 billion. Gross margin and operating income were also both better than expected.
Spotify stock gapped up, clearing a flat-base entry of 331.08. But this is a fourth-stage pattern, which is riskier than early-stage ones.
Overall performance is not ideal, with its IBD Composite Rating sitting at 71 out of 99. It is in the top 7% of issues in terms of price performance, but its EPS Rating of 73 out of 99 is also not ideal.
However, the firm is seen swinging from a full-year loss of $3.01 per share to earnings of $5.09 a share in 2024. Earnings are seen growing a further 45% next year.
Updated 12:17 p.m. ET
Home Sales Fall As Prices Spike
Existing home sales fell 5.4% to an annual rate of 3.89 million in June, the National Association of Realtors said Tuesday.
This was a fourth straight month of declines. Home prices hit a record high, which seems to be taking a toll of potential buyers. The median price of an existing home popped 4.1% year over year, to $426,900.
The SPDR S&P Homebuilders ETF reversed higher, and was turning in a fractional gain. The triple-leveraged Direxion Daily Homebuilders & Supplies Bull 3X ETF was up nearly 1%.
GE Stock Clears Entry
General Electric may be no more as a conglomerate, but its "GE" ticker symbol lives on in the guise of GE Aerospace.
The stock soared into a buy zone on the stock market today after the company beat analyst views thanks to earnings of $1.20 a share. Revenue of $8.2 billion was slightly light but margins were well clear of expectations.
Chief Executive Larry Culp said factors including services strength and productivity had helped raise margins. GE Aerospace provides jet engines as well as integrated systems for commercial, military and general aviation aircraft.
GE stock is in a buy zone after clearing a flat base entry of 170. This is a third-stage base, which counts as a midstage pattern. Overall strong performance has netted it an IBD Composite Rating of 93.
Meanwhile, Catalyst Pharmaceuticals is breaking out of a consolidation with an ideal entry point of 17.50. The RS line is spiking higher. Both earnings and price performance are solid. The biotech develops therapies for people with rare debilitating chronic neuromuscular and neurological diseases.
And Construction Partners has clambered above its own buy point of 62.35. The heavy-construction play is in the top 5% of issues in terms of price performance over the past 12 months, but its EPS Rating of 75 out of 99 is not ideal.
Updated 10:39 a.m. ET
Stock Market Today: GM Stock Dips
General Motors shareholders saw a premarket gain evaporate in open trading. GM stock was down more than 6%, and is testing support at the 50-day moving average, according to MarketSurge analysis.
Earnings popped 60% to $4.06 a share, which was better than Wall Street analysts expected. Revenue climbed 7% to $48 billion, also besting expectations. GM was getting walloped despite also raising its full-year forecast for earnings before interest and taxes to between $13 billion and $15 billion.
The decline came as the firm announced it will seek to restructure its struggling China business. The firm also announced production of its autonomous Cruise Origin vehicle is being delayed indefinitely.
Stock Market Today: Warren Buffett Stock Coca-Cola Pops
Coca-Cola stock rose 0.7% after an earnings beat. Earnings rose 8% to 84 cents a share while revenue of $12.36 billion was also above analyst views. The company also raised its outlook. It now sees full-year organic revenue growth between 9% and 10%, up from the previous range of 8% to 9%.
Coca-Cola stock is in buy range above a flat-base entry of 64.36, MarketSurge analysis shows. Buffett is a big fan of the stock and its reliable dividend. His firm Berkshire Hathaway owns 400 million shares. The stock currently has a dividend yield of 3%.
Only Amazon.com was faring better in the Dow's early trade. The e-commerce play was up more than 2% and right at its 50-day line. By contrast, Walt Disney lagged as it fell nearly 3%.
Outside Dow Jones: 3 Stocks Near Entries
A few highly rated stocks were eyeing potential buy points on the stock market today.
Trinity Industries is near a flat-base entry of 32, according to MarketSurge analysis. The industrial conglomerate holds an IBD Composite Rating of 98 out of 99.
Its EPS Rating comes in at 89 out of 99. It is in the top 15% of issues in terms of price performance over the past 12 months. Earnings are due in eight days, which adds risk to buying before the report.
Water meter maker Badger Meter is eyeing a flat-base buy point of 202.81 on the stock market today. It rose above the buy point early, but was below it in afternoon trading. Earnings performance is strong here, with its Earnings Per Share Rating sitting at 97. The firm posted an earnings beat last week, which removes a potential hurdle. In total, 61% of BMI stock is held by funds.
Corcept Therapeutics is nearing an entry of 35.22 on the stock market today. This is a first-stage base, which means it stands a better chance of getting good returns.
All-around performance is excellent and has netted it a near-perfect IBD Composite Rating of 98. Big Money has been snapping up shares of late, with its Accumulation/Distribution Rating sitting at B-.
Earnings are due July 29. An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
