Stock Market News: Earnings Reports, Dow Jones Futures, and Google Parent Alphabet

Earnings Reports and Market Open

Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures remained flat ahead of Tuesday’s stock market open. Exciting big earnings reports are expected this week, including Microsoft, Boeing, Tesla, Meta Platforms, and Google parent Alphabet. Investors are eagerly watching these reports for potential market movements. Nvidia’s stock has rebounded after a recent downfall, giving a positive signal in the tech sector.

Cadence Design Systems, Nucor, and Packaging Corporation of America Earnings

On Monday, Cadence Design Systems, Nucor, and Packaging Corporation of America released their earnings reports. Cadence’s stock price plummeted by nearly 9%, while Nucor experienced a 3% sell-off in after-hours trading. Packaging Corporation of America, on the other hand, witnessed a slight increase in its shares after the stock market closed.

Upcoming Economic Data and the Impact on Interest Rates

This week, important economic data, such as the first-quarter GDP and the Fed’s primary inflation gauge, the Personal Consumption Expenditures price index, will be released. Based on existing inputs, analysts project that the upcoming data may not deliver any relief from the recent surge in interest rates. The GDP data, scheduled for release on Thursday, is expected to reveal a 2.1% growth in the first quarter, down from 3.4% in the fourth quarter. Additionally, the Bureau of Economic Analysis will report the core PCE price index and personal spending and outlays for March on Friday.

Stock Market Performance

On Monday, the Dow Jones Industrial Average climbed 0.7%, the S&P 500 rallied 0.9%, and the tech-heavy Nasdaq composite advanced 1.1%. Among the Magnificent Seven stocks, Nvidia experienced a significant recovery, gaining 4.4% after a 10% drop on Friday. Apple and Microsoft, two of the Dow Jones tech icons, also ended higher, with a 0.5% increase each. Alphabet, Dexcom, On Holding, and Tradeweb Markets, along with American Express, a Dow Jones component, have been identified as some of the best companies worth watching in the stock market today.

Stock Market Correction and Possible Actions

As the stock market outlook indicates a correction phase, it is crucial to stay updated with IBD’s The Big Picture column. In order to manage the market risk, it is recommended to refer to IBD’s latest exposure levels. IBD Live, a useful resource for assessing trading conditions, shares valuable insights into stock market pullbacks. IBD MarketSurge provides the “Breaking Out Today” list, featuring MarketSurge Growth 250 stocks, as well as the “Near Pivot” list, showcasing stocks nearing buy points in bases. IBD’s Stock Lists, including IBD 50, Big Cap 20, and Stocks Near A Buy Zone, can also help investors find potential stock ideas.

Dow Jones Today and Economic Indicators

Prior to Tuesday’s opening bell, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures showed little change compared to their fair values. It’s important to note that overnight market activity doesn’t always indicate actual trading during regular stock market sessions. Furthermore, the 10-year U.S. Treasury yield declined to 4.61% on Monday, while oil prices experienced a dip, settling slightly above $82 a barrel for West Texas Intermediate futures.

Opportunities and Risks in Dow Jones Stocks

American Express, a Dow Jones leader, has shown positive signs by bouncing back from its 50-day moving average in heavy trading volume. The software leader is now in a new buy area. However, it is crucial to consider the high market risk associated with the current market conditions. Moreover, American Express reported better-than-expected earnings and sales for the first quarter, along with a positive outlook. This led to a 6.2% surge in its stock price. The company earned $3.33 per share on $17.8 billion in sales, reflecting a 39% and 13% year-over-year increase, respectively.

Google Parent Alphabet

Google parent Alphabet seems to be maintaining its positive momentum as its stock price has surpassed the 153.78 buy point in a consolidation phase. Dexcom, although it fell below its flat-base entry last week, is still holding above its crucial 50-day line. The stock’s ability to stay above this line is seen as a positive indication. On Holding, a retail leader, experienced a decline below its 50-day line on Friday, despite Monday’s 1.1% gain. Tradeweb Markets is currently constructing a flat base with a 108.04 buy point, but still faces challenges in surpassing its 50-day line. A breakout above this level would indicate a potential positive milestone for the stock.

Stocks to Watch

Here are four stocks in or near buy zones in today’s stock market:

Source: IBD Data As Of April 22, 2024