Dow Jones futures rise after stock market reversal with Netflix, Tesla profits due
Dow Jones futures were higher after Monday’s stock market reversal ahead of Netflix earnings, due out Tuesday. Tesla’s earnings are on deck for Wednesday.
Earnings season continues, with reports on Dow Jones stocks IBM (IBM) and Johnson & Johnson (JNJ), with Halliburton (HAL) and Lockheed Martin (LMT). IBM reported late Monday, while J&J, Halliburton and Lockheed will report early Tuesday.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.7% after rising 1.1% to its intraday high. The S&P 500 fell 0.8% after rising 1.1%. And the tech-heavy Nasdaq composite lost 0.8% after gaining as much as 1.5% in previous trades.
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 slightly after its second quarter results. Charles Schwab (SCHW) fell 1.5% despite a strong earnings report, while Goldman Sachs (GS) jumped 2.5% on better-than-expected earnings results.
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You’re here (TSLA) pared its gains to 0.2% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) sold 2.1% on reports that the company plans to slow growth in hiring and spending next year to prepare for a possible recession. Microsoft (MSFT) was trading down 1% in today’s stock market.
In a volatile stock market environment, the leaders of the Dow Jones, Johnson & Johnson, Merck (MRK) and UnitedHealth (UNH) — as well as Dollar Tree (DLTR), Northrop Grumman (NOC), Quantum Services (REP) and Mobility will see (VRRM) – are among the stocks to watch. Keep in mind that continued stock market volatility is a reason to stay more defensive.
UnitedHealth is an IBD ranking stock. Dollar Tree is an IBD SwingTrader stock. Quanta was Thursday’s IBD stock of the day. Verra was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures were up 0.15% relative to fair value and S&P 500 futures gained 0.3%. Nasdaq 100 futures were up 0.3% from fair value. Remember that overnight action on futures contracts on Dow and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year Treasury yield rose Monday, closing at 2.96%. Meanwhile, US oil prices rebounded nearly 5%, with West Texas Intermediate trading above $99 a barrel.
Stock market rally
Individual stock action has mostly improved over the past few trading sessions, which is a good start to a struggling stock market rally. Nevertheless, be more conservative and keep positions small when it comes to new purchases. Don’t increase exposure too quickly, especially in times of uncertainty. Monday’s sharp reversal only further confirms a challenging environment in which to progress.
Friday’s The Big Picture column commented: “The Nasdaq composite rose 1.8% and looks set for another rendezvous with its 50-day moving average. Stock market bulls want to see the index return to the above that key level. If it can do that, a tradable rally could gain even more traction.”
If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones stocks to watch now
Dow Jones Earnings: IBM, Johnson & Johnson
IBM on Monday evening announced better-than-expected second-quarter results. But shares fell more than 3% in extended trade. The company reported adjusted earnings of $2.31 per share on revenue of $15.5 billion. Analysts had expected adjusted earnings of $2.27 on revenue of $15.1 billion. IBM stock ended about 5% off its 52-week high.
Dow Jones leader Johnson & Johnson remains below the 181.84 buy point of a double-bottom base, according to IBD MarketSmith’s chart analysis, after Monday’s 2.2% decline . The company reports early Tuesday.
Dow Jones stocks to watch: Merck, UnitedHealth
Pharmaceutical giant Merck fell 2.8% on Monday and sits around 3% below the 95.02 buy point of its flat base.
Health insurance giant and IBD Leaderboard UnitedHealth stock is in the buy range above the 518.80 buy point of its double bottom with handle base after Monday’s 2% drop .
The UNH stock is posting a solid 96 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch in the currentrStock market rally
Top stocks to watch: Dollar Tree, Northrop, Quanta, Verra
IBD SwingTrader stock Dollar Tree broke again above the 166.45 buy point of its handle cup on Monday, up 0.9%. On another positive note, the discount retailer’s RS range is reaching new heights. Dollar Tree stock is posting a solid 97 out of an IBD Composite Best Rating of 99, according to the IBD Stocks Balance Sheet.
Northrop Grumman fell below its key 50-day line as it continues to build a flat base that has a buy point of 492.40. CNO shares were down 2.6% on Monday.
Quanta Services is putting the finishing touches on a mug with handle that has a buy point of 138.56, according to chart analysis from IBD MarketSmith. Shares are around 8% off last entry after Monday’s 0.8% loss.
Verra Mobility is trying to exceed the 16.83 point of purchase of a mug with handle. Stocks briefly topped the entry on Monday morning, but closed slightly below the buy point. The stock’s RS line continued to show tremendous strength as it hit a new high on Monday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Netflix earnings are expected on Tuesday evening. The company is expected to earn $2.96 per share, flat from the year-ago period, on sales of about $8.03 billion. Revenue is expected to grow 9% year over year.
Last quarter, the company expected to lose 2 million subscribers in the June quarter due to price hikes and increased competition. Wall Street analysts now expect the video streamer to lose 1.72 million subscribers in the second quarter.
Netflix stock closed Monday more than 70% off its 52-week high.
Tesla stock rose 0.2% on Monday, extending a winning streak to four sessions. Stocks are trying to decisively regain their 50-day line, but remain deep below their 200-day line. Tesla stock traded as high as 1,243.49 on November 4. The shares are about 42% off that record.
The results of the electric vehicle giant are expected on Wednesday after the close of trading. Analysts expect the company’s earnings to rise 28% to $1.86 per share on revenue of $16.5 billion.
Tesla delivered 254,695 vehicles in the second quarter, roughly matching Wall Street’s lowered estimates. FactSet analysts expect shipments to pick up in the second half of 2022 as chip supply slowly increases. Wall Street sees Tesla notch 1.4 million units by the end of the year.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 2.1% on Monday, ending a two-day winning streak. Apple remains above its 50-day line after bullish action in recent weeks. Stocks remain well below their long-term 200-day line. The stock is around 20% off its 52-week high. Apple’s earnings are due July 28.
Microsoft fell 1% on Monday, again finding resistance around its 50-day line. The stock closed around 27% off its 52-week high. The software giant will release its quarterly results on July 26.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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