The Dow Jones Industrial Average and other major stock indexes closed higher Tuesday and near session highs. Palantir jumped 23% in the stock market today after reporting robust fourth-quarter earnings. Costco Wholesale was among several stocks that broke out of bases.
The Dow Jones index added 0.3%, and held well above its 50-day moving average. The S&P 500 rose 0.7% and remained above the 6,000 level. More importantly, the Nasdaq composite climbed nearly 1.4% and closed back above its 50-day line.
Small caps also performed well, with the Russell 2000 adding 1.4%. It remained below its 50-day line but at least closed back above its 21-day exponential moving average.
Volume fell on both the Nasdaq and New York Stock Exchange from Monday's totals. On the Nasdaq, rising stocks topped falling issues by nearly 11-to-5. On the NYSE, gainers beat losers similarly by more than 2-to-1.
Duolingo notched a 6% gain and broke out of a cup base with a 378.48 buy point. Shares of the language learning app are in a buy zone up to 397.40. Duolingo hit an all-time high while its relative strength line reached a 52-week high, as shown by the blue dot on its MarketSurge chart.
Newly added IBD SwingTrader name Snowflake climbed about 3.5% and went back into the buy zone of a 186.90 buy point. Shares broke out of a cup-without-handle base Jan. 28, but the breakout had faded.
3:23 p.m. ET
Stock Market Today: Costco Breaks Out
Costco Wholesale broke out of a cup base with a 1,008.25 buy point and is in a buy zone up to 1,058.66. The discount membership retailer's shares are on track for a fifth straight day of gains as it hit a record high. Volume was only 15% above average, but the relative strength line made a new high.
Costco rival BJ's Wholesale Club also broke out of a cup base, this one with a 100.74 buy point. The buy range reaches to 105.78. BJ's relative strength line also hit a new high.
PJT Partners gapped up more than 10% and broke out of a flat base with a 168.92 buy point. The financial advisory firm topped fourth-quarter adjusted earnings and revenue estimates. The relative strength line also is at new highs.
MP Materials broke out of a deep cup base with a 24.01 entry. The rare earth mining stock is in the buy range up to 25.21. Its relative strength line hit a 52-week high. Shares have climbed around 58% so far this year and reached a level not seen since July 2023. The company, however, has a 4 EPS Rating.
Bitcoin Falls As Gold Rises
In cryptocurrency, bitcoin fell 2.5% to sit around the $99,000 level. Gold prices continued to climb, with futures rising 0.6% and reaching a new high.
The SPDR Gold Shares exchange traded fund rose 0.9% and is in the buy zone up to 270.60 from a 257.71 entry.
And crude oil fell 0.5% to around $72.78 a barrel Tuesday afternoon after the China tariff news.
In economic news, the Labor Department's Job Openings and Labor Turnover Survey showed there were 7.6 million job openings in December, short of estimates for 8 million. The number also was lower than November's revised 8.156 million.
2:05 p.m. ET
Reddit Hits New High
IBD 50 and Big Cap 20 name Reddit popped 6.2% and reached an all-time high on the stock market today. Reddit stock is extended after two pullbacks with bounces off its 10-week moving average. Shares have climbed around 30% so far this year.
The stock's relative strength line has climbed sharply since the online social media and discussion platform reported its robust third-quarter earnings results on Oct. 29. Reddit is expected to release its fourth-quarter results Feb. 12 after the market close.
UBS Group skidded around 7% in heavy trading after the Swiss bank topped fourth-quarter profit and sales, but said it expects declining net interest income from its Global Wealth Management and Personal & Corporate Banking divisions.
Shares sank to the 50-day line. The bank stock surrendered a nearly 10% gain from a double-bottom base breakout with a 33.10 buy point. UBS stock was back below the entry Tuesday afternoon.
ATI trimmed gains to around 8%, after the specialty metals manufacturer exceeded Q4 adjusted earnings and revenue projections and gave a first-quarter and full-year 2025 adjusted profit outlook topping estimates. Shares reclaimed the 200-day moving average on Tuesday's move. Shares are in a 28-week long, late-stage base with an official 68.92 buy point.
12:21 p.m. ET
Beauty Stock Looks Ugly
Estee Lauder plummeted nearly 17% in huge volume following the beauty product maker's fiscal second-quarter results. Adjusted profit came in higher than views, but still sank 30% while sales fell 6%.
The company gave a third-quarter earnings outlook that was well below forecasts. Estee Lauder also is cutting up to 7,000 jobs. The stock has been weak as seen in its 22 Relative Strength Rating. It was the biggest loser on the S&P 500 Tuesday.
KKR tumbled more than 7% even though the asset manager beat fourth-quarter adjusted earnings estimates. The IBD 50 name sank below its 50-day line and triggered the 7% sell rule from the 163.68 buy point, after sitting in the buy zone of a cup base. Shares have given back more than 10% from the 52-week high reached Friday.
Another IBD 50 stock, Dave, rallied nearly 3% and is in an irregular base with a 108.50 buy point. The fintech and mobile banking name holds a 99 Relative Strength Rating and its RS line hit a 52-week high.
Fox Corporation jumped 6.5% and topped a buy zone after it easily beat fiscal second-quarter adjusted profit and revenue forecasts. The media stock reached an all-time high on the stock market today.
Fox and Investor's Business Daily's parent company, News Corp, share common ownership.
10:44 a.m. PT
Stock Market Today: Palantir Rockets
IBD 50 stock Palantir Technologies rocketed more than 25% higher in heavy volume after the company topped fourth-quarter earnings and sales projections. It also offered first-quarter and full-year 2025 revenue forecasts that were well above estimates.
The stock reached a record high as it topped the 100 price level. Shares are extended after several tests of the 10-week moving average and a newly formed cup base with an 84.80 entry. Further, Palantir was the biggest gainer on the S&P 500 Tuesday. The stock holds best-possible 99 IBD Composite and Relative Strength Ratings.
Spotify popped more than 10% following the streaming entertainment provider's mixed fourth-quarter earnings report. Sales topped estimates while earnings came in light of forecasts, but its subscribers and users topped projections. The IBD leaderboard name reached the 20% profit zone of a cup base with a 506.47 buy point, according to MarketSurge pattern recognition.
Dynatrace bumped up 1.1% and broke out of a cuplike base with a 59.80 buy point, but quickly faded below the entry.
Big Stock Movers: PayPal Tanks As Ferrari Races Higher
PayPal Holdings tumbled around 9% even though the digital payments firm beat fourth-quarter profit and sales forecasts. It also gave first-quarter and full-year 2025 earnings predictions above views and announced a $15 billion stock buyback program. But its total payment volume came in a little lighter than expected.
PayPal stock sank below the bottom of its current flat base with a 93.66 buy point. It also undercut its 50-day line, triggering a sell signal.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Ferrari zoomed nearly 8% higher after the luxury automaker handily beat fourth-quarter profit and revenue estimates but gave a full-year 2025 earnings and revenue outlook that came in below views. Ferrari stock reclaimed its 50-day and 200-day moving averages on the stock market today.
Dow Jones component Merck plunged more than 10% after the drugmaker reported higher-than-expected profit and sales for the fourth quarter but issued full-year 2025 adjusted earnings and revenue outlooks that lagged forecasts. Merck stock hit a 52-week low on the drop and was the biggest loser on the Dow Jones Tuesday.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
