The Dow Jones Industrial Average and other major indexes kept climbing Tuesday as the markets attempted to get a rally going on the stock market today after last week’s sell-off. Four Magnificent Seven companies head into earnings as the Fed’s preferred inflation gauge and first-quarter GDP results are also due.
X
Building on Monday’s gains, the Dow industrials were up 0.6% while the S&P 500 rose 1% in morning trades. The Nasdaq led the major indexes with a 1.3% jump. All indexes remain above Monday’s lows.
First-quarter GDP results are due Thursday while the Fed’s preferred inflation gauge, the Personal Income and Outlays for March is expected to follow on Friday. Both are vital data points for the Fed. Economists expect the inflation index to rise slightly to 2.6% after February’s 2.5% gain on an annual basis.
Ahead of big tech earnings this week, the Philadelphia semiconductor index, known as SOX, rose for the second straight session on the stock market today, erasing some of its sharp losses last week.
Volume on both the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Monday. Breadth was healthy with advancers ahead of decliners by 4-to-1 on the NYSE and 3-to-1 on the Nasdaq. While a high level of vigilance for sell signals in stocks remains a priority, the short term overbought-oversold oscillator on IBD MarketSurge remains near its October oversold levels.
Small caps on the Russell 2000 index jumped 1.8% while growth stocks in the Innovator IBD 50 (FFTY) exchange traded fund posted a 2.1% gain.
The yield on the benchmark 10-year Treasury note fell 4 basis points to 4.58%.
Dow Jones On Stock Market Today
Stocks on the Dow Jones index were mostly higher. Verizon (VZ) was the biggest gainer after the company reported first-quarter results on Monday. Verizon posted a huge 4.7% loss on Monday.
Merck (MRK), Intel (INTC) and Caterpillar (CAT) will report first-quarter results on Thursday. Merck is at its 21-day moving average.
Stocks On The Move
General Motors (GM) jumped 4% after sales and earnings came in above views. The company also raised its earnings outlook for the full year.
In electronic design automation, Cadence Design Systems (CDNS) fell more than 1% after its outlook for the second quarter missed views. Cadence is an IBD Long Term Leader. Also, GE Aerospace (GE) surged 5% after its quarterly report.
Four Magnificent Seven stocks will report earnings with Tesla‘s (TSLA) first-quarter results due after the market close Tuesday.
Facebook-parent Meta Platforms (META) will follow on Wednesday with Google-parent Alphabet (GOOGL) and Microsoft (MSFT) reporting Thursday
Google stock is in a buy zone with an entry point of 154.78 ahead of earnings while Meta and Tesla reversed higher on the stock market today. Among other Magnificent Seven stocks, Nvidia (NVDA) rose, approaching its 50-day line.
Analysts expect a decline in both sales and earnings for Tesla with growth for the other three reporting this week.
| TICKER | EPS | SALES (bil) |
|---|---|---|
| META | $4.97 | 36.1 |
| GOOGL | $1.61 | 86.3 |
| MSFT | $2.82 | 60.8 |
| TSLA | $0.49 | 22.2 |
Steel stocks were among earnings movers as well. Nucor (NUE) and Cleveland-Cliffs (CLF) fell after both steel producers missed estimates. Steel Dynamics (STLD) will report at the market close.
All three stocks have fallen below the 50-day moving average. Cleveland-Cliffs and Steel Dynamics were the worst performers in the IBD MarketSurge Growth 250 on the stock market today.
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