Dow Jones futures rose ahead of Tuesday’s open after the Dow Jones Industrial Average rose more than 550 points on Monday. Netflix earnings will be announced late Tuesday, while Tesla earnings will be announced on Wednesday.
But first Dow Jones stocks Goldman Sachs (GS) and Johnson and Johnson (JNJ) will report early Tuesday.
Stock Market Today: Bank of America, Charles Schwab Earnings
On Monday, the Dow Jones Industrial Average rose 1.9% and the S&P 500 rose 2.65%. The tech-heavy Nasdaq composite rose 3.4 percent. The small-scale Russell 2000 rose 3.2%.
Among exchange-traded funds, the Nasdaq 100-follower Invesco QQQ Trust (QQQ) gained 3.3% and the SPDR S&P 500 (SPY) gained 2.5%.
Bank of America (BAC) and Charles Schwab (SCHW) reported its quarterly results Monday morning. BAC shares rose 6.1%, while Charles Schwab shares sold 2.25%.
electric vehicle giant tesla (TSLA) raced 7% higher, recovering from Friday’s big slide. Among Dow Jones shares, Apple (AAPL) rose 2.9% and Microsoft (MSFT) rose 3.9% in the stock market today.
Auto Zone (AZO), Cardinal Health (CAH), Molina Health (SB) and Vertex Pharmaceuticals (VRTX) – as well as Dow Jones stocks strip (CVX) and Merck (MRK) — among the best stocks to watch. Keep in mind that the ongoing stock market correction is a time for investors to sit on the sidelines and create watchlists for the top-growing stocks.
Cardinal Health and Vertex are IBD Leaderboard stocks. Merck and Molina Healthcare were featured in this week’s Stocks Near a Buy Zone column, along with two other key stock ideas.
The 4 Top-Growing Stocks to Watch on Current Stock Market Fix
Dow Jones Futures Today: Treasury Yields, Oil Prices
Dow Jones futures were up 1.6% ahead of the opening bell on Tuesday, while S&P 500 futures were up 1.9%. Nasdaq 100 futures rose 2.1% to fair value. Note that an overnight move in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
The 10-year Treasury yield rose to 4.01% and closed the second consecutive session over 4%. Meanwhile, U.S. oil prices extended losses from Friday’s slide and fell on Monday. West Texas Intermediate futures traded below $86 a barrel.
3rd Quarter Earnings Season
The third quarter earnings season is heating up this week with key reports coming in. locked Martin (LMT), Netflix (NFLX), Procter and Gamble (PG), travelers (TRV), alcohol (AA), IBM (IBM), Tesla, American Express (AXP) and Verizon Communications (VZ), along with a number of other high-profile companies.
Earnings reports cause many of the biggest moves in stocks and require special care. Strong gains could push top stocks to previously untouched levels and above new buy points, while an unimpressive announcement could cause shares to plummet.
The stock market’s reaction to a earnings release can often tell you more than the earnings themselves. If results look strong but the stock still slides, investors may be concerned about the sustainability of growth, rising costs, or other potential downsides.
When the market is in rally-attempted mode, investors should follow companies that easily beat earnings results and have strong upside reactions. If the market can recover, they could be among the stock market leaders.
What To Do In Today’s Stock Exchange: Look For This Key Signal
Despite Monday’s big gains, the market trend remains in a correction amid sharp losses in recent sessions. Traders are looking for a follow-up day, which is the key signal that could push the market trend up into a confirmed uptrend. The Nasdaq and S&P 500 could trigger this trend change day as early as Tuesday (Day 4 of the current rally attempt). Investors are safer on the sidelines as IBD’s trend is “market in correction”.
Now is the time to build a strong watch list of top performing stocks. Many long-term leaders tend to exit on or near the trailing day, the market bottom signal. Missing this early opportunity can be a costly mistake.
Friday’s column in The Big Picture commented: “Technically speaking, the rally attempt is solid but the reversal lowers rates for continued bullishness. The 21-day exponential moving averages remain tough resistance, so investors should watch this when buyers bounce back.”
Five Dow Jones Stocks to Watch Now
Dow Jones Stocks to Watch: Chevron, Merck
Energy giant Chevron continues to consolidate above its 50-day line, forming a foundation showing a buy point of 182.50. An early entry at 166.93 is also in play. Chevron shares rose 0.7% on Monday.
CVX stock has a strong 98 out of an excellent 99 IBD Compound Rating according to IBD Stock Control. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.
Merck, a Dow Jones member and IBD 50 stock, surpasses the double bottom 93.12 buy point, According to IBD MarketSmith pattern recognition. Shares gained 2.1% on Monday to close above the buy point. Remember that the ongoing market correction is a reason to stay on the sidelines; however, the stock is showing signs of abnormal strength. The relative strength line reached a new high last week. Third quarter earnings results will be announced in October. 27 before the opening bell.
Best Stocks to Watch: AutoZone, Cardinal, Molina, Vertex
AutoZone, the auto parts leader and recent IBD Stock of the Day, is about 3% off the 2,362.34 point of purchase of a cup bottom. Watch out for a potential handle to offer a lower entry. AutoZone shares were up 1.5% on Monday.
IBD Leaderboard stock and medical leader Cardinal Health form a flat bottom with 72.38 buy points, according to IBD MarketSmith chart analysis. Winnings will be paid in November. 4.
Molina Healthcare ended Monday just 2% below the 361.35 buying point of a flat bottom. The stock’s RS line hit a new high last week, confirming that the health stock is a leader to watch.
Biotech leader Vertex Pharmaceuticals continues to build on a flat footing, with points of purchase of 306.05 and early entry at 296.90. The RS series has set a new record in recent sessions, a sign of massive stock market performance.
Netflix earnings will be announced on Tuesday after the stock market closes. The streaming giant’s adjusted EPS is expected to drop 33% to $2.14 on revenue of $7.83 billion.
Netflix shares form a double bottom with 250.49 points of purchase. The stock is down nearly 65% from its 52-week high.
Join IBD experts as they analyze leading stocks in the current stock market rally initiative on IBD Live
Tesla stock rose 7% on Monday and nearly erased Friday’s 7.55% drop. On Friday, shares closed at their lowest level since June 2021. Despite Monday’s gain, the stock is still about 47% down from its 52-week high.
The EV giant’s third-quarter results are in late Wednesday. Tesla is expected to earn an adjusted $1.01 per share from $22.1 billion in sales.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 2.9% on Monday and rebounded from Friday’s sell-off of 3.2%. Still, shares are about 23% below their 52-week high and below the 50- and 200-day lines.
Microsoft rose 3.9%, continuing its recovery from last week’s 52-week low. The software giant is about 32% off its 52-week high.
Apple earnings are expected in October. 27, and Microsoft’s October. 25.
Be sure to follow Scott Lehtonen on Twitter. @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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