Stock Market Rallies, As These 2 Dow Jones Stocks Report Earnings – Investor's Business Daily

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The stock market rallied higher, as strong corporate earnings help set the pace early Tuesday. The Dow Jones industrials gained about 50 points in today’s stock market, amid mixed earnings results from Dow Jones stocks Johnson & Johnson (JNJ) and UnitedHealth Group (UNH). Chinese stock leader Alibaba (BABA) rebounded early Tuesday, while FANG stock leader Netflix (NFLX) will report its quarterly results after the stock market close.


Among exchange traded funds, the Innovator IBD 50 Fund (FFTY) gained 0.3%, indicating that top growth stocks were performing in line with the major stock indexes Tuesday. The ETF is holding above its long-term 200-day moving average line.

Current Stock Market Action

The tech-heavy Nasdaq composite moved up 0.4%. The S&P 500 gained 0.3%, while the Dow Jones industrials rallied 0.25%. Year to date, the Nasdaq is up about 20%, while the S&P 500 gained about 16%. The Dow has risen about 13%.

The Nasdaq is nicely above a key support level in today’s stock market — the 200-day moving average — after solid gains in recent trading sessions. The S&P 500 and Dow Jones industrials, meanwhile, also traded above that line, with the S&P 500 above long-term resistance near 2800. (For updates on this story and other market coverage, visit the Stock Market Today page.)

Dow Jones Stocks: JNJ Gains, UnitedHealth Slips

Among the Dow Jones stocks, Johnson & Johnson stock moved up 2.3% after the company’s quarterly results early Tuesday. The blue chip stock is trying to regain a cup with handle’s 140.10 buy point after a recent breakout.

UnitedHealth reversed from strong gains to fall about 1%. The nation’s largest insurer reported Q1 results before the stock market open. Shares are about 20% off their 52-week high.

Apple (AAPL) is holding just above a 197.79 buy point, according to MarketSmith chart analysis. The buy point was a result of Apple’s cup with handle pattern. Shares moved up 0.2% Tuesday.

Stock Market Earnings: Bank Of America Sells Off

Bank of America (BAC) disappointed investors with its early-morning earnings report Tuesday. The company missed revenue targets. Bank of America stock sold off 2.5%, extending a losing streak to two trading sessions. The stock remains above its 50- and 200-day lines.

After the stock market close Tuesday, FANG stock Netflix will announce its Q1 earnings results. Analysts expect the video streaming platform to earn 57 cents per share on revenue of $4.5 billion. Shares rallied over 2% Tuesday. Netflix shares broke down through their 50-day line in heavy volume Friday after the Disney+ announcement. The FANG stock is tracing a cup with handle with a 379.10 buy point.

Bearishly, the stock’s relative strength line is significantly lagging and is at a multimonth low. Look for it to improve considerably if it makes an upward move on earnings. The RS line is used by investors to measure a stock’s price performance compared to the general market.

Dow Jones stock IBM (IBM) will also report after the close.

Alibaba Leads Chinese Stock Leaders

After a tough day for Chinese stock leaders Monday, they looked to recover some of those losses with solid gains in morning trade Tuesday.

Alibaba stock moved up 0.5%, but remains below its recent 188.18 buy point in a cup with handle.

Leaderboard stock Autohome (ATHM) is tracing a new handle onto a cup base. The cup with handle shows a new 111.70 buy point. Shares fell as much as 2.8% before reversing 0.5% higher mid-morning.

NetEase (NTES) traded just above unchanged and remains extended from a 258.82 buy point after a breakout on April 2.

Top Stocks To Watch: Microchip Technology

Among the IBD 50 top growth stocks, Microchip Technology (MCHP) was one of the top performers with an over-1% rise. Shares are extended from a cup with handle’s 91.92 buy point.

According to IBD Stock Checkup, Microchip Technology has a highest-possible 99 IBD Composite Rating. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge the strengths of a company’s stock.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks, sell signals and the stock market.


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