Dow Jones Rallies, But Netflix Crashes 34% On Earnings; Tesla Earnings Due

The Dow Jones Industrial Average rose 200 points Wednesday, even as Netflix stock crashed more than 34% in early morning trade. Later, Tesla earnings are due out after the close.


Abbott Laboratories (ABT), ASML (ASML) and Baker Hughes (BKR) were key earnings movers Wednesday morning. Abbott stock fell almost 1%. ASML stock jumped more than 5%. BKR shares dropped around 4.5% in morning trade.

Lululemon (LULU) turned slightly lower after announcing a five-year plan to double revenue by 2026. Twitter (TWTR) was down more than 1% after Tuesday’s 4.7% tumble. And electric-vehicle giant Tesla (TSLA) lost 2% Wednesday morning.

Among the Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) were up 0.5% and 1.2%, respectively, in today’s stock market.

Despite the struggling stock market rally, Dow Jones leaders American Express (AXP) and Caterpillar (CAT) – along with IBD Leaderboard watchlist stock Edwards Lifesciences (EW), Murphy Oil (MUR), Raytheon Technologies (RTX), Shell (SHEL) and Ulta Beauty (ULTA) – are among Wednesday’s top stocks to buy and watch.

Microsoft and Tesla are IBD Leaderboard stocks. Caterpillar and Edwards Lifesciences were featured in this week’s Stocks Near A Buy Zone column. Edwards was also Monday’s IBD Stock Of The Day. And Caterpillar is an IBD SwingTrader stock.

Dow Jones Today: Treasury Yields, Oil Prices

After Wednesday’s open, the Dow Jones Industrial Average rose 0.5%. The S&P 500 erased early gains, and the Nasdaq dropped 0.8% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.6%. The SPDR S&P 500 ETF (SPY) ran up 0.2%.

The 10-year Treasury yield ticked down to 2.89% Wednesday morning after climbing to 2.91% Tuesday, its highest level since December 2018. Meanwhile, US oil prices were up more than 1%, as Texas Intermediate crude traded around $ 104 a barrel.

Stock Market Rally

On Tuesday, the stock market finished with strong gains, snapping a two-day losing streak.

Tuesday’s The Big Picture column commented, “Tuesday’s rebound saw the Nasdaq composite rip almost 2.2% higher and the Nasdaq 100 rise 2.2% also. Small caps beat their large-cap siblings. A 2% rebound by iShares Russell 2000 nearly hoisted the key exchange traded fund back above its 50-day moving average. The S&P 500 and Dow Jones Industrial Average settled for gains in the 1.4% -1.6% range. “

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Earnings: Procter & Gamble

Dow Jones stock Procter & Gamble (PG) reported its quarterly results early Wednesday. The company topped earnings and sales estimates, sparking a 1.15% gain in morning trade.

PG stock is tracing a cup with handle that has a 161.31 buy point.

Dow Jones Stocks To Buy And Watch: American Express, Caterpillar

Dow Jones financial stock American Express also is tracing a cup-with-handle base, showing a 194.45 buy point. The stock bullish regained its 50-day line during Tuesday’s 1.5% gain. AXP shares were up more than 1% Wednesday morning.

Meanwhile, IBD SwingTrader stock Caterpillar is in buy range past a cup-with-handle’s 227.15 buy point following Thursday’s breakout move. The 5% buy area goes up to 238.51. A bullish indicator – the stock’s RS line is at its highest level since June 2021. Shares were up 1.4% Wednesday.

Four Top Growth Stocks To Buy And Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Edwards, Murphy, Raytheon, Shell, Ulta

IBD Leaderboard watchlist stock Edwards Lifesciences is just shy of a cup with handle’s 125.21 buy point following Tuesday’s 4.4% rise. EW shares inched higher Wednesday morning.

Murphy Oil closed at an ascending base’s 43.30 buy point after Tuesday’s 1.1% decline. MUR stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares were up 2% early Wednesday.

Defense contractor Raytheon Technologies finished just above a flat base’s 104.44 buy point after shares inched higher Tuesday. RTX shares were up 1.3% Wednesday morning.

Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is moving higher in the buy range above a flat base’s 56.23 buy point after Tuesday’s 1.3% rise. The 5% buy area goes up to 59.04. SHEL shares fell around 0.5% Wednesday morning.

Ulta Beauty shares are still barely in the 5% buy range past a cup with handle’s 408.83 buy point, according to IBD MarketSmith chart analysis, in the wake of Tuesday’s 3% advance. The buy area goes up to 429.27. The stock’s relative strength line is at new high, which is a key sign of market leadership. ULTA shares were up 1% early Wednesday.

Netflix Earnings

The Netflix earnings report was mixed late Tuesday. Earnings topped estimates, while sales missed targets. Disappointingly, the company lost 200,000 subscribers in the March quarter. Analysts and the company’s own guidance predicted 2.5 million new subscribers in the period.

NFLX shares plunged 34% Wednesday morning. The stock finished Tuesday about 50% off its 52-week high.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Earnings Due

Tesla stock fell 2% Wednesday morning, following Tuesday’s 2.4% climb. The EV giant will report its quarterly results late Wednesday. Analysts expect the company to earn $ 2.26 a share on revenue of $ 17.65 billion, according to FactSet.

Shares of the EV giant finished Tuesday about 11% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4. and ended Tuesday about 17% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares triggered the 7% -8% loss-cutting rule from a 176.75 buy point in a double-bottom base last week. Meanwhile, a handle buy point is the latest entry to watch at 179.71. The stock was up 0.5% Wednesday morning.

Software leader Microsoft rose 1.7% Tuesday, but remains sharply below its 50-and 200-day lines. The stock is around 20% off its 52-week high. MSFT shares were up 1.1% early Wednesday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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