Dow Jones futures turned lower Wednesday morning, struggling to rebound after two straight days of losses. Earnings season kicks off this week with financial giants JPMorgan and Goldman Sachs reporting quarterly results. The 10-year Treasury yield bounced back from losses on Tuesday. U.S. oil prices climbed above $102 a barrel.
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Dow Jones member JPMorgan (JPM) reported its quarterly results early Wednesday, while Goldman Sachs (GS) earnings are due out Thursday morning. Meanwhile, Delta Air Lines (DAL) and Fastenal (FAST) also reported early Wednesday. Delta shares jumped more than 5%. FAST stock rallied around 2.5% in early morning trade.
Among the Dow Jones leaders, Apple (AAPL) rose 0.8%, and Microsoft (MSFT) traded up 1% in today’s stock market.
Twitter (TWTR) gained more than 1%, while electric vehicle giant Tesla (TSLA) rallied around 1%, looking to add to Tuesday’s gains.
As the stock market’s uptrend struggles, Dow Jones financial leader American Express (AXP) — along with IBD Leaderboard watchlist stock Edwards Lifesciences (EW), Murphy Oil (MUR), Raytheon Technologies (RTX) and Shell (SHEL) — are among Wednesday’s top stocks to buy and watch.
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
Before Wednesday’s open, Dow Jones futures turned 0.1% lower vs. fair value. S&P 500 futures erased early gains and Nasdaq 100 futures defended a 0.1% rise in early morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.1%, and the SPDR S&P 500 ETF (SPY) was flat ahead of Wednesday’s open.
The 10-year U.S. Treasury yield snapped a seven-day win streak Tuesday, falling to 2.72% after briefly hitting its highest level since Dec. 2018. The 10-year Treasury yield ticked up to 2.73% Wednesday morning. Meanwhile, U.S. oil prices climbed around 1.5% Wednesday morning with West Texas Intermediate crude trading above $102 a barrel.
Stock Market Rally Continues To Struggle
On Tuesday, the stock market posted another disappointing performance with the major stock indexes reversing from solid gains to end with modest losses. The Nasdaq closed further below its 50-day line, which had been a key support level to watch.
Tuesday’s The Big Picture column commented, “As you can see on the daily chart, the tech-weighted index showed an outside day. That is, the high and low of Tuesday’s trading day exceeded the high and low water marks of Monday’s session. Such action pointed to uncertainty on Wall Street. And during periods of relatively mild weakness in stocks, nothing makes traders more hesitant to load up on beaten-down shares than uncertainty.”
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Dow Jones Earnings: JPMorgan
Dow Jones banking giant JPMorgan reported its quarterly results Wednesday morning. The company missed earnings targets, as JPM shares dropped more than 3% in premarket trade Wednesday. The stock finished Tuesday more than 20% off its 52-week high.
Financial rivals Citigroup (C), Goldman Sachs, Morgan Stanley (MS) and Wells Fargo (WFC) will report early Thursday.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: American Express
Dow Jones financial stock American Express is tracing a cup-with-handle base, showing a 194.45 buy point. AXP shares traded flat Wednesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent ascent, the RS line is nearing its old highs, but does have some work cut out for it ahead of a potential breakout. The RS line measures a stock’s price performance vs. the S&P 500. The RS line should hit a new high on the breakout day or shortly thereafter to confirm the strength of stock’s breakout.
Four Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Edwards, Murphy, Raytheon, Shell
IBD Leaderboard watchlist stock Edwards Lifesciences continues to advance up the right side of a cup base that shows a 131.83 buy point. Shares fell 0.5% Tuesday. Monday’s weakness was likely the start of a handle that would lower the risk-optimal entry to 125.21. EW shares remained flat Wednesday morning.
Murphy Oil is tracing an ascending base with a 43.30 buy point. Following Tuesday’s 0.8% gain, shares are about 5% away from the latest entry. MUR stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares rose 0.7% early Wednesday.
Defense contractor Raytheon Technologies is within striking distance of a flat base’s 104.44 buy point. Shares rallied 0.5% Tuesday, trading just 2% off the latest entry. RTX shares edged 0.6% higher Wednesday morning.
Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is just below a flat base’s 56.23 buy point after Tuesday’s 1.2% rise. SHEL shares jumped 2% Wednesday morning, implying an early move back above the buy point.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock pared its early rally to 0.1% Wednesday, following Tuesday’s 1.1% gain. Shares of the EV giant finished Tuesday about 14% below a cup-with-handle’s 1,152.97 buy point.
The stock traded as high as 1,243.49 on Nov. 4. and ended Tuesday about 21% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares moved up 1.15% Tuesday, still squarely below a 176.75 buy point in a double-bottom base. The stock is close to triggering the 7%-8% loss-cutting sell rule. Along with that double-bottom entry, a handle buy point is also in play at 179.71. On the downside, AAPL stock gave up its 50-day support level Monday, indicating further weakness is likely. The stock was up 0.2% Wednesday morning.
Software leader Microsoft dropped another 1.1% Tuesday, as shares fell further below their 50-and 200-day lines. The stock is nearly 20% off its 52-week high. MSFT shares gained 0.2% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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