Dow Jones futures gained more ground Wednesday morning — along with S&P futures and especially tech futures — as Wall Street reacted to Netflix‘s (NFLX) earnings report. Up next, Tesla earnings are due after the market close.
X
Before the opening bell, Dow Jones futures rose 0.4% vs. fair value, while S&P 500 futures added 0.5%. Tech-heavy Nasdaq 100 futures climbed 0.8% in premarket action. The S&P and Nasdaq are working on their fourth straight day of gains.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.8%, while the SPDR S&P 500 ETF (SPY) moved up 0.5%.
The 10-year Treasury yield ticked down to 4.1% Wednesday morning. The 10-year had climbed to 4.14% Tuesday.
Further, oil prices looked to stem Tuesday’s losses, as West Texas Intermediate futures ticked up Wednesday. WTI futures held above $75 a barrel.
Netflix Surges On Earnings
Netflix surged 10% in premarket action Wednesday after the streaming giant beat Wall Street’s targets for new subscribers and revenue in the fourth quarter. But its earnings were light and the company’s outlook was mixed.
Other key earnings movers Wednesday morning include ASML (ASML), AT&T (T), Freeport McMoRan (FCX) and Intuitive Surgical (ISRG)
ASML stock jumped 6% premarket, while AT&T shares tumbled nearly 3%. FCX stock climbed 6.6%, as ISRG stock advanced 5% in early action.
Further, the S&P Global’s Purchasing Managers’ Index, commonly known as PMI, is due at 9:45 a.m. ET. Wall Street expects the manufacturing index to edge lower to 47.7 in January vs. 47.9 in December. The services index is anticipated to fall to 51.0 in January vs. December’s 51.4 reading.
Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 moved up 0.3%. The tech-heavy Nasdaq composite climbed 0.4%.
Tuesday’s Big Picture column commented, “Even though the big stock market leaders started breaking out of bases in late October and early November, recent base breakouts are still working OK. Just remember that if you’re watching a stock poised to break out of a base, make sure it’s one of the leaders in its industry group — not a second- or third-tier stock.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
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Best Stocks To Buy And Watch
DraftKings (DKNG), MercadoLibre (MELI), Novo Nordisk (NVO), Snowflake (SNOW) and Spotify (SPOT) — plus Dow Jones components American Express (AXP), Amgen (AMGN) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.
MercadoLibre and Spotify were featured in this Stocks Near A Buy Zone column.
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Dow Jones: Merck Attempts Breakout
Credit card leader American Express bounced further out of buy range, with a 0.3% gain Tuesday. Shares are now just out of the buy range past a 175.31 buy point in a cup with handle. AXP stock rose 0.8% Wednesday morning.
Biotech leader Amgen edged lower Tuesday, easing from recent highs. Shares remain out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock inched lower early Wednesday.
Drug maker Merck is trying to break out past a cup base’s 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares finished just above their entry amid a 0.3% gain Tuesday. MRK stock dipped Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Snowflake Breaks Out
IBD Leaderboard watch list stock DraftKings extended a win streak to six sessions Tuesday, rising another 0.9%. The recent gains put the stock in an early buy zone. Meanwhile, a double-bottom base has an official buy point at 38.97. DKNG stock rose another 1.5% Wednesday.
MercadoLibre is moving out of buy range past a flat base’s 1,660 buy point, as shares climbed another 0.2% Tuesday. MELI stock gained 1.1% early Wednesday.
Weight-loss drug maker Novo Nordisk ended Tuesday down 0.1%, further below its 105.69 flat-base buy point. NVO stock rebounded 1.1% Wednesday morning.
Software leader Snowflake is breaking out past a 202.83 buy point in a flat base, with a 3.3% rally Tuesday, according to IBD MarketSmith. SNOW stock added 2% Wednesday.
IBD SwingTrader stock Spotify closed Tuesday above a 202.88 buy trigger in a flat base, with a 0.5% rise. SPOT stock climbed 3.3% Wednesday morning.
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Best Bets In Today’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| American Express | (AXP) | 175.31 | Cup with handle |
| DraftKings | (DKNG) | 39.35 | Cup base |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Jan. 22, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) rose 0.8% and 1.6%, respectively, in premarket action Wednesday.
Nvidia moved up 0.4% Tuesday, further out of buy range past a 505.48 buy point in a flat base.
Tesla stock gained 0.2% Tuesday, still at its lowest level since mid-November. Tesla stock sits sharply below its 50- and 200-day moving averages. The electric-vehicle giant’s earnings report is due late Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Wednesday’s stock market open.
Apple stock rose 0.7% Tuesday, further above its 50-day line. Friday’s bullish move placed the stock in an aggressive buy area. A new official buy point has emerged at 199.62 due to a flat base. Shares tacked on 0.1% early Wednesday.
Microsoft stock moved up 0.6% Tuesday, nearly extended past a flat base’s 384.30 buy point. MSFT was a recent IBD Stock Of The Day. And the software giant rose 0.7% Wednesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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