The Dow Jones Industrial Average reversed from early losses and climbed Wednesday after struggling to recover after two straight days of losses. Earnings season begins with the release of quarterly results from financial giants JPMorgan and Goldman Sachs. The 10-year Treasury yield contributed to Tuesday’s losses. US oil prices climbed above $102 a barrel.
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Dow Jones member JP Morgan (JPM) reported its quarterly results early Wednesday, while Goldman Sachs (GS) results are due Thursday morning. In the meantime, Delta Airlines (DAL) and closure (FAST) also reported early Wednesday. Delta shares are up more than 4%. FAST stock fell nearly 2% in morning trade.
Among Dow Jones executives Apple (AAPL) rose 0.2% and Microsoft (MSFT) was trading up 0.4% on today’s exchange.
Twitter (TWTR) was up around 3%, while the electric vehicle giant Tesla (TSLA) rose 0.5%, adding to Tuesday’s gains.
As the stock market uptrend struggles, Dow Jones is the financial leader American Express (AXP) – along with IBD Leaderboard watchlist holdings Edward’s Biological Sciences (EW), Murphy Oil (MUR), Raytheon technologies (RTX) and sleeve (SHEL) – are among the top stocks to buy and watch on Wednesday.
Microsoft and Tesla are IBD Leaderboard stocks. Edwards Lifesciences and Raytheon Technologies were featured in this week’s ‘Stocks Near a Buy Zone’ column.
Dow Jones Today: Treasury Yields, Oil Prices
After Wednesday’s open, the Dow Jones Industrial Average gained 0.4%, while the S&P 500 gained 0.35%. The tech-heavy Nasdaq rose 0.7% in morning trade.
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) was up 0.7% and SPDR S&P 500 ETF (SPY) was up 0.4% after Wednesday’s open.
The 10-year US Treasury yield on Tuesday went on a seven-day winning streak, falling to 2.72% after briefly hitting its highest level since December 2018. The 10-year government bond yield fell to 2.69% on Wednesday morning. Meanwhile, U.S. oil prices rose about 2% on Wednesday morning, with West Texas Intermediate crude trading above $102 a barrel.
Stock market rally continues struggle
On Tuesday, the stock market posted another disappointing performance, with major stock indices reversing from solid gains to end with modest losses. The Nasdaq continued to close below its 50-day moving average, which was a key support level to watch for.
Tuesday’s The Big Picture column commented, “As you can see on the daily chart, the tech-weighted index showed a day out of action indicated uncertainty on Wall Street. And in times of relatively light stock weakness, nothing makes traders more reluctant to charge for battered stocks than uncertainty.”
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Dow Jones Earnings: JPMorgan
Dow Jones banking giant JPMorgan released its quarterly results on Wednesday morning. The company missed earnings targets as JPM shares fell more than 3% in Wednesday morning trade. The stock closed more than 20% below its 52-week high on Tuesday.
financial competitors Citigroup (C), Goldman Sachs, MorganStanley (MS) and Wells Fargo (WFC) will report early Thursday.
Four Dow Jones stocks you should be watching right now
Dow Jones stocks to buy and look at: American Express
Dow Jones financials American Express is following a cup and handle basis and shows a buy point of 194.45. AXP shares traded flat on Wednesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is nearing its old highs, but still has some way to go before a potential breakout. The RS line measures a stock’s price action against the S&P 500. The RS line should make a new high on or shortly after the breakout day to confirm the strength of the stock’s breakout.
Four top growth stocks to buy and watchrightde Stock market rally
Stocks to buy and watch: Edwards, Murphy, Raytheon, Shell
IBD leaderboard watchlist Edwards Lifesciences continues to rise to the right of a cup base showing a buy point of 131.83. Shares fell 0.5% on Tuesday. Monday’s weakness was likely the start of a level that would lower the risk-optimal entry to 125.21. EW shares were up 0.8% on Wednesday morning.
Murphy Oil is tracking an ascending basis with a buy point of 43.30. After gaining 0.8% on Tuesday, shares are about 5% off the last entry. MUR stock has a perfect IBD Composite Rating of 99 according to the IBD Stock Checkup. Shares were up more than 3% early Wednesday.
Defense contractor Raytheon Technologies is within striking distance of the buy point of a flat base of 104.44. Shares rallied 0.5% on Tuesday, trading just 2% below the last entry. RTX shares were up 0.7% on Wednesday morning.
Oil & gas producer Shell, IBD stock of the day April 1 is just below the buy point of a flat base of 56.23 after rising 1.2% on Tuesday. SHEL shares are up 2% on Wednesday morning, suggesting an early return above the buy point.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla shares rose 0.5% on Wednesday after rising 1.1% on Tuesday. Shares of the EV giant closed about 14% below the mug buy point of 1,152.97 on Tuesday.
The stock traded as low as 1,243.49 on Nov. 4 and closed about 21% off that all-time high on Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.15% on Tuesday, still well below a buy point of 176.75 on a double bottom basis. The stock is close to triggering the 7% to 8% loss-limiting sell rule. Along with this double bottom entry, there is also a handle buy point in play at 179.71. On the upside, AAPL stock broke its 50-day support level on Monday, suggesting further weakness is likely. The stock was up 0.2% on Wednesday morning.
Software leader Microsoft fell another 1.1% on Tuesday as shares continued to slide below their 50- and 200-day moving averages. The stock is down almost 20% from its 52-week high. MSFT shares were up 0.4% early Wednesday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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