The Dow Jones Industrial Average reversed higher on Tuesday as blue chips 3M and Coca-Cola released their quarterly results. Next, Microsoft’s earnings are expected after the close.
Stock market today: the earnings season continues
Dow Jones Stocks 3M (MMM) and Coke (IS) reported on Tuesday. General Motors (GM), Halliburton (HAL), Raytheon Technologies (RTX) and United Parcel Service (UPS) are also among key reporters on Tuesday morning.
MMM stock fell 4% after missing earnings estimates and lowering its full-year outlook. KO stock jumped 2.4% after posting better-than-expected earnings and sales results.
GM stock rebounded 3.5% in early trading, while Halliburton rose almost 2%. Raytheon slid 3% after its results, while UPS stock jumped 2.5%.
Auto area (AZO), Cardinal Health (HAC), Eli Lily (THERE IS) and Texas Truck Stop (TXRH) — as well as Dow Jones stocks Merck (M.K.R.) and UnitedHealth Group (A H) – are among the best stocks to watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watchlists into action and sharpen their pyramid technique.
Young rallies, especially those fighting bear markets, often fail. Pyramiding provides a method of gradually accessing new equity positions to minimize risk to capital.
Dow Jones Today: Treasury Yields, Oil Prices
After Tuesday’s opening bell, the Dow Jones Industrial Average rose 0.35% after erasing early losses, while the S&P 500 gained 0.8%. The tech-heavy Nasdaq composite rose 1.4% in morning action.
The 10-year Treasury yield fell to 4.07% on Tuesday morning. On Monday, the 10-year Treasury yield hit 4.23%, standing at its highest level since June 2008.
Meanwhile, U.S. oil prices rose nearly 1% on Tuesday, recovering from Monday’s slight losses. West Texas Intermediate futures were trading near $85 a barrel.
The stock market rally continues
On Monday, the Dow Jones Industrial Average rebounded 1.3% and the S&P 500 advanced 1.2%. The tech-heavy Nasdaq composite climbed 0.9%.
Monday’s Big Picture cautioned: “The number of institutional-grade stocks forming solid foundations or exiting is relatively small. But the opportunities are growing. On Monday, more than 20 stocks appeared on MarketSmithfrom the list of eruptions. Most, however, were unimpressive.”
This is an important time to read IBD’s The Big Picture column. After Friday’s gains, investors want to put their curated watchlists to work, in order to jump on future breakouts. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend proves its worth.
Dow Jones stocks to buy and watch: Merck, UnitedHealth
Member of the Dow Jones and IBD Stock 50 Merck is at the top of its buy range above its double bottomat 93.12 point of purchase, according IBD Pattern Recognition MarketSmith, after Monday’s 1.8% advance. The 5% buy zone rises to 97.78. Third-quarter results are expected Thursday before the opening bell.
Merck shares traded down almost 1% on Tuesday morning.
Healthcare giant UnitedHealth is approaching 553.23 from a cup with handle point of purchase, according IBD Pattern Recognition MarketSmith. Shares rebounded 1.5% on Monday, closing in on the stock’s last entry. UNH stock fell 0.5% on Tuesday morning.
Top stocks to buy and watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Leader in auto parts and Recent IBD stock of the day AutoZone is above the buy point of 2,362.34 from a cut basis, rising 4.6% on Monday. The 5% pursuit zone rises to 2,480.46. AutoZone shares rose 0.3% on Tuesday.
IBD classification According IBD MarketSmith graphical analysis. Stocks are also above the buy point of 72.38 on a flat basis. Earnings are scheduled for Nov. 4. CAH stock was down 0.9% early Tuesday.
IBD Swing Trader Eli Lilly stock closed again in the buy range past the buy point of 335.43 on a flat basis, rising 2.1% on Monday. The shares were down 0.6% on Tuesday morning.
Texas Roadhouse is trying to reclaim the 95.52 buy point from a flat base after a brief breakout move last week. Shares ended just above the entry on Monday. The results are expected on Thursday. The stock was up 0.1% on Tuesday.
Tesla stock price target lowered
Tesla Stock plunged as much as 7.4% on Monday before paring losses to 1.5%. The first loss occurred as highly exposed stocks to Chinese markets was beaten, and after Tesla’s planned 9% price reduction for its Model 3 and Model Y cars sold in China. Shares hit their lowest level since June 2021. The stock closed about 49% off its 52-week high.
Shares of the electric vehicle giant rose 3% on Tuesday morning, even as Berenberg Bank and Morgan Stanley lowered their price targets. Morgan Stanley analyst Adam Jonas lowered the company’s price target on Tesla from 350 to 330, while maintaining an overweight rating. Jonas warned of “unexpected headwinds” in the fourth quarter and into 2023.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares rebounded 1.5% on Monday and are about 19% off their 52-week high. Despite a recent rally, the stock remains below its 50 and 200 day lines. Apple’s earnings are Thursday after the close. AAPL stock rose 0.6% on Tuesday morning.
Microsoft rose 2.1% on Monday, up for a second straight day. Stocks are still in rebound mode after hitting a 52-week low on Oct. 13. The software giant remains around 30% off its 52-week high. Shares climbed 0.2% on Tuesday.
Microsoft earnings are expected after the close. The company is expected to earn $2.31 per share on sales of $49.6 billion.
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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