The Dow Jones Industrial Average and other major indexes ended higher Tuesday as investors took a bullish tone ahead of key economic data. Magnificent Seven companies headed into earnings with Nvidia approaching a key threshold and Alphabet trading in a buy zone on the stock market today. And Tesla climbed after first-quarter results came out after the close.
Building on Monday's gains, the Dow industrials climbed 0.7%, or 263 points, while the S&P 500 rose 1.2%. Among the sectors, technology and communication services gained the most while materials and consumer staples lagged. The Nasdaq led the major indexes with a 1.6% jump.
On the economic front, first-quarter GDP results are due Thursday while the Federal Reserve's preferred inflation gauge, the core personal consumption expenditures price index, is expected to follow on Friday.
Both are considered vital data points for Fed policymakers. Economists expect the inflation index to rise slightly to 2.6% after February's 2.5% gain on an annual basis.
Tech Indicator Rises Again
Ahead of a slew of earnings reports for major tech players this week, the Philadelphia semiconductor index rose for the second straight session on the stock market today. The index erased some of the sharp losses it incurred last week.
Small caps headed higher for the third straight session, helping the Russell 2000 index gain 1.8% on Tuesday while the Innovator IBD 50 ETF posted a 2.9% gain.
The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.59%.
Volume on the New York Stock Exchange was lower and higher on the Nasdaq compared with the same time on Monday. Advancers led decliners by 8-to-1 on the NYSE and 3-to-1 on the Nasdaq.
While a high level of vigilance for sell signals in stocks remains a priority, the short-term overbought-oversold oscillator on IBD MarketSurge remains near its October oversold levels.
After the close, Tesla reported sales of $21.3 billion and earnings of 45 cents per share. Analysts had expected sales of $22.2 billion with earnings of 49 cents per share. Nonetheless, shares surged nearly 6% in after-hours trading.
In the past week, Tesla cut prices for its electric vehicles and full self-driving vehicles while also launching a new model 3 performance version to rev up demand. On X/Twitter, Chief Executive Elon Musk touted that the new performance version was "quicker than a Porsche 911."
Dow Jones On Stock Market Today
Meanwhile, stocks on the Dow Jones index were mostly higher.
Merck, Intel and Caterpillar were mixed as they are set to report first-quarter results Thursday. Merck is at its 21-day moving average, trying to find support.
Apple rose 0.6% but remained well below its 50-day moving average.
New research shows that iPhone sales in China slumped amid competition from local rivals, while Huawei made a successful comeback to the higher-end segment with the launch of its 5G-capable series. Weak China sales have been plaguing the iPhone maker for a while now even as other risks from antitrust suits are rife.
Stock Market Today: GM On The Move
General Motors jumped 4.4% after sales and earnings came in above views. The company also raised its earnings forecast for the full year.
In electronic design automation, Cadence Design Systems trimmed its losses to 1.1% after its outlook for the second quarter missed views. Cadence is an Investor's Business Daily Long Term Leader. Also, GE Aerospace surged 8.3% after its quarterly earnings, its first report after it divested its health care and other businesses.
Also in the Magnificent Seven, Facebook parent Meta Platforms will follow with its earnings report on Wednesday, with Google parent Alphabet and Microsoft reporting Thursday.
Google stock is in a buy zone with an entry point of 153.78, while Meta and Tesla closed higher on the stock market today. Analysts expect growth for Meta, Alphabet and Microsoft when they report.
Fellow Magnificent Seven stock Nvidia rose Tuesday and approached its 50-day line.
Analysts Estimates For Q1
| Ticker | EPS | Sales (bil) |
|---|---|---|
| META | $4.97 | $36.1 |
| GOOGL | $1.61 | $86.3 |
| MSFT | $2.82 | $60.8 |
| TSLA | $0.45 | $21.3 (actual) |
Steel Stocks Bend On Earnings
Steel stocks were among earnings movers as well. Nucor and Cleveland-Cliffs fell hard after both steel producers missed estimates. Steel Dynamics reported sales of $4.69 billion versus views of $4.74 billion.
All three stocks have fallen below their 50-day moving averages. Cleveland-Cliffs and Steel Dynamics were the worst performers in the IBD MarketSurge Growth 250 on the stock market today.
In aerospace and defense, Heico broke out from a flat base with a buy point of 200.64.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
