The Dow Jones Industrial Average fell 100 points Wednesday morning as Netflix shares jumped with better-than-expected earnings results, pushing up Walt Disney (DIS), Roku (ROKU) and other streaming stocks. Tesla’s profits will then come out after the close.
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Abbott Laboratories (ABT), ASML (ASML), Baker Hughes (BKR), Biogen (BIIB) and Cal-Maine Foods (CALM) were the main drivers of the gains after Tuesday’s opening.
Abbott shares fell 2.7% in morning trading. Shares of ASML fell more than 1% after disappointing second-quarter guidance. Baker Hughes fell 9%. Biogen shares fell nearly 2%. And Cal-Main Foods rose more than 2% in early-morning trading.
Tesla (TSLA) reversed first gains early Wednesday. Elsewhere, Dow Jones technology leaders Apple (AAPL) lost 0.2% and Microsoft (MSFT) fell 0.15% before today’s stock market opening.
In a volatile upward trend of the stock market, the leaders of Dow Jones, Merck (MRK) and UnitedHealth (UNH), as well as Dollar Tree (DLTR), Lantheus (LNTH), Quanta Services (PWR) and Verra Mobility (VRRM), are among the actions. watch. Keep in mind that while the market has shown growing signs of strength, continued volatility is a reason to remain cautious.
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Lantheus and UnitedHealth are shares of the IBD classification. Dollar Tree is a stock of IBD SwingTrader. Verra appeared in the Stocks column near a buying zone this week and was the IBD Stock of the Day on Monday.
Dow Jones today: Treasury yields, oil prices, mortgage demand
After Wednesday’s opening, the Dow Jones Industrial Average was down 0.3% and the S&P 500 was down 0.15%. The Nasdaq technology compound rose 0.2% in morning trading.
Among the publicly traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker rose 0.2%. And the SPDR S&P 500 ETF (SPY) fell 0.1%.
The 10-year Treasury yield fell to 2.96% on Wednesday morning, threatening to break a two-day winning streak. Meanwhile, oil prices in the United States fell, falling by about 2% in the first stocks. West Texas Intermediate futures traded at around $ 99 a barrel.
Mortgage demand fell more than 6% last week from the previous week, reaching its lowest level since 2000, according to the seasonally adjusted Mortgage Bankers Association index, published on Wednesday hour. Meanwhile, the National Association of Realtors will release existing home sales figures in June at 10 a.m. ET.
According to Econoday estimates, existing home sales fell at a seasonally adjusted annual rate of 5.395 billion in June from 5.41 million in May. Sales declined for four consecutive months until May.
Stock market meeting
On Tuesday, the stock market registered strong action, as the main stock market indices ended with big gains. The Nasdaq rose 3.1%, while the industrial Dow Jones and S&P 500 followed with gains of 2.4% and 2.8%, respectively.
Tuesday’s The Big Picture column commented: “Since the last day of follow-up was consolidated with a rally on the 5th with a higher turnover on June 24, the main averages enjoyed one of their best concentrations. “The Nasdaq compound rose 3.1% and rose above its 50 – day moving average in rapid decline for the first time in about four months. Small caps were performing even better.”
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Investors can also create watch lists, find companies near a point of purchase, or develop custom screens at IBD MarketSmith.
Five Dow Jones shares to watch now
Dow Jones shares to watch: Merck, UnitedHealth
Merck drug stocks rose on Tuesday, but remain well below the 95.02-point buying point of its flat base, according to analysis by the IBD MarketSmith chart. Shares of Merck fell 0.6% early Wednesday.
The health insurance giant and IBD UnitedHealth rating stocks are in a buy range above the 518.80 buy-points of its double-bottomed base with handle after the 2.7 rise % of tuesday. Shares fell 0.6% on Wednesday.
The existence of the UNH shows a strong 96 out of a perfect 99 IBD composite rating, according to the IBD stock review. Investors can use the IBD composite rating to easily measure the quality of the fundamental and technical metrics of a stock.
The 4 most important growth stocks to see in the current stock market rebound
Main actions to see: Dollar Tree, Lantheus, Quanta, Verra
Shares of IBD SwingTrader, Dollar Tree, are gaining ground above the 166.45 buy point of their cup handle and remain in the buy range. Another positive note is the discount line’s RS line of discounts, which hit a new high last week. Dollar Tree shares show a strong 97 on the best possible 99 IBD composite score, according to the IBD stock check. Shares of Dollar Tree remained stable on Wednesday.
The existence of IBD Leaderboard Lantheus is approaching a buy point of 73.88 as it recovers from support around its 50-day line. According to the rating table comment, Lantheus has proven to be one of the strongest stocks on the market right now after coming out of a double-bottomed base in February. Shares of Lantheus rose 0.4% early Wednesday.
Quanta Services is giving the final touches to a cup base with a handle that has a point of purchase of 138.56, according to the analysis of the IBD MarketSmith chart. Shares are about 5% away from the last entry after Tuesday’s 3.3% rise. Shares rose 0.1% in the morning.
Verra Mobility is surpassing a cup with the 16.83 handle purchase point. Shares closed above the buy point on Tuesday amid a 3% advance. The RS line of stocks continues to show tremendous strength as it hit another new high on Tuesday. Shares of Verra were up 0.6% Wednesday morning.
Netflix Earnings
Netflix earnings exceeded estimates on Tuesday afternoon, fueling a 3% jump in morning trading. The company earned $ 3.20 per share with sales of $ 7.70 billion in the second quarter. Wall Street had modeled Netflix earnings of $ 2.95 per share with sales of $ 8.03 billion. Year-over-year, Netflix revenue rose 8% while sales grew 9%.
The company lost 970,000 subscribers during the June quarter. Three months ago, Netflix predicted it would lose 2 million subscribers in the second quarter after rising prices and amid rising competition.
Shares of Netflix closed Tuesday with more than a 70% discount in its 52-week high.
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Tesla stock
Tesla shares rebounded 2.1% on Tuesday, extending a five-session winning streak, but shares are still around 40% of that record high. Shares erased first gains, falling 0.2% on Wednesday.
The profits of the electric vehicle giant will be announced on Wednesday after the stock market closes. Analysts expect the company’s earnings to increase 28% to $ 1.86 per share with revenue of $ 16.5 billion.
Tesla delivered 254,695 vehicles in the second quarter, roughly in line with Wall Street’s reduced estimates. FactSet analysts expect deliveries to increase during the second half of 2022, with a slow increase in chip supply. Wall Street sees Tesla reach 1.4 million units by the end of the year.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones equities, Apple shares rebounded 2.7% on Tuesday, recovering after a 2.1% sell-off on Monday. Apple is above its 50-day line after bullish action in recent weeks. The shares remain well below their 200-day long-term line and have approximately a 17% discount on their 52-week maximum. Apple’s earnings are due to be released on July 28th. Shares were down 0.2% Wednesday morning.
Microsoft rose 2.1% on Tuesday, again testing resistance around its 50-day line. Shares closed around 26% of their 52-week high. The software giant will report quarterly results on July 26th. Shares of Microsoft fell 0.15% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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