Dow Jones futures were higher after Monday’s disgusting stock market reversal ahead of Netflix earnings, which come on Tuesday. Tesla revenues are on deck for Wednesday.
The earnings season continues, with reports from the Dow Jones stock IBM (IBM) and Johnson & Johnson (JNJ), along with Halliburton (HAL) and Lockheed Martin (LMT). IBM reported late Monday, while J&J, Halliburton and Lockheed will report early Tuesday.
The stock market today
On Monday, the Dow Jones Industrial Average fell 0.7% after rising as much as 1.1% at its intraday high. The S&P 500 fell 0.8% after rising as much as 1.1%. And the technology-heavy Nasdaq composite lost 0.8% after gaining as much as 1.5% in previous trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.85% and the SPDR S&P 500 ETF (SPY) fell 0.8%.
Bank of America (BAC) rose higher after the results for the second quarter. Charles Schwab (SCHW) fell 1.5% despite a strong earnings report, while Goldman Sachs (GS) jumped 2.5% on better than expected result.
Most Reliable Finance Companies – Take a Survey and Win a $ 50 Amazon Gift Card
Tesla (TSLA) reduced the rise to 0.2% on Monday. Among Dow Jones executives, apple (AAPL) sold 2.1% on reports that the company plans to slow growth in employment and spending next year to prepare for a potential recession. Microsoft (MSFT) traded 1% lower in today’s stock market.
In the volatile stock market environment, Dow Jones executives Johnson & Johnson, Merck (MRK) and UnitedHealth (UNH) – and Dollar Three (DLTR), Northrop Grumman (NO C), Quanta services (PWR) and Worse Mobility (VRRM) – is among the stocks you should see. Remember that ongoing volatility in the stock market is a reason to stay more defensive.
UnitedHealth is an IBD Leaderboard action. Dollar Tree is an IBD SwingTrader stock. Quanta was Thursday’s IBD Stock Of The Day. Verra was featured in this week’s Shares near a buy zone column.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures rose 0.15% against fair value, and S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.3% relative to fair value. Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year government interest rate ticked higher on Monday, closing at 2.96%. Meanwhile, US oil prices rose nearly 5%, with West Texas Intermediate trading above $ 99 a barrel.
Stock market rally
The individual stock action has largely improved in recent trading sessions, which is a good start during a strenuous stock market rise. However, be more conservative and keep positions small when it comes to new purchases. Do not increase the exposure too quickly, especially in the midst of a lot of uncertainty. Monday’s sharp reversal only provides more confirmation of a difficult environment to make progress in.
Friday’s The Big Picture column commented: “The Nasdaq composite rose 1.8% and appears to be ready for another meeting with its 50-day moving average. Stock market bulls want to see the index look back above this key level. If it can that is, a negotiable rally can get even more traction. “
If you are new to IBD, consider taking a look at the stock trading system and the basics of CAN SLIM. Recognizing chart patterns is a key to the investment guidelines. IBD offers a wide range of growth charts, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.
Four Dow Jones shares to see now
Dow Jones revenue: IBM, Johnson & Johnson
IBM reported better-than-expected second-quarter results late Monday. But stocks fell more than 3% in expanded trading. The company reported adjusted earnings of $ 2.31 per share on revenue of $ 15.5 billion. Analysts expected adjusted earnings of $ 2.27 on a turnover of $ 15.1 billion. IBM shares ended at about 5% of their 52-week high.
Dow Jones leader Johnson & Johnson is still below a double-bottom base 181.84 buy points, according to the IBD MarketSmith chart analysis, after Monday’s decline of 2.2%. It reports the company early Tuesday.
Dow Jones shares to see: Merck, UnitedHealth
Drug giant Merck fell 2.8% on Monday, and is about 3% below the flat base’s buying point of 95.02.
The health insurance giant and IBD Leaderboard share UnitedHealth are in the buying area above their double-bottom-with-handle buying point of 518.80 after Monday’s fall of 2%.
The UNH stock shows a strong 96 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
4 top growth stocks to see in timera stock market rally
Top stocks to look at: Dollar Tree, Northrop, Quanta, Verra
The IBD SwingTrader stock Dollar Tree moved further above the cup-with-handle buy point of 166.45 on Monday, rising 0.9%. On another positive note, the discount retailer’s RS line is right on new heights. The Dollar Tree stock shows a strong 97 of the best possible 99 IBD Composite Rating, according to the IBD Stock Checkup.
Northrop Grumman fell below its most important 50-day line, as it continues to build a flat base with a buying point of 492.40. NOC shares fell 2.6 percent on Monday.
Quanta Services puts the finishing touches on a cup with handles that has a purchase point of 138.56, according to IBD MarketSmith chart analysis. The shares are about 8% away from the last listing after Monday’s loss of 0.8%.
Verra Mobility is trying to break past a 16.83 cup-with-handle buy point. The shares briefly topped the entry early Monday, but they closed, to put it mildly, below the point of purchase. The stock’s RS line continued to show tremendous strength as it reached a new high on Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Netflix revenue comes late on Tuesday. The company is expected to earn $ 2.96 per share, flat compared to the same period last year on sales of around $ 8.03 billion. Revenues are expected to increase by 9% year over year.
Last quarter, the company predicted losing 2 million subscribers in the June quarter due to price increases and increased competition. Wall Street analysts now expect the video streamer to lose 1.72 million subscribers in the second quarter.
Netflix shares closed Monday with more than a 70% discount at the highest level in 52 weeks.
Tesla shares rose 0.2% on Monday, extending a winning streak to four sessions. Stocks are trying to regain their 50-day line, but stay well below the 200-day limit. The Tesla stock traded as high as 1,243.49 on November 4th. The shares are approximately 42% lower than record highs.
The electric car giant’s earnings will come out on Wednesday after the stock exchange closes. Analysts expect the company’s earnings to increase by 28% to $ 1.86 per share with revenue of $ 16.5 billion.
Tesla delivered 254,695 vehicles in the second quarter, roughly in line with lower Wall Street estimates. FactSet analysts expect deliveries to increase in the second half of 2022, and the chip supply will increase slowly. Wall Street sees Tesla have 1.4 million units by the end of the year.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares sold 2.1% on Monday, taking a two-day winning streak. Apple is still above its 50-day line after bullish action in recent weeks. Shares remain well below their long-term 200-day line. The stock is about 20% of its 52-week high. Apple revenue is due July 28.
Microsoft fell 1% on Monday, again finding resistance around its 50-day line. The stock closed about 27% of its 52-week high. The software giant will report quarterly results on July 26.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
CAN YOU ALSO LIKE:
Top growth stocks to buy and look at
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with long-term IBD leaders
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool simplifies the search for top stocks