Dow Jones improves on worsening sell-off in the stock market; Microsoft jumps on earnings

The Dow Jones Industrial Average broke 270 points on Wednesday morning as the stock market fell to its lowest level in more than a year. tech giants Alphabet (GOOGLE) and Microsoft (MSFT) — with Dow Jones shares Boeing (BA) and Visa (v) – reported their quarterly earnings.


Google-parent Alphabet fell 4% early Wednesday after March quarter earnings and revenue missed Wall Street targets. Spotify (spot) and Tech Resources (TECK) were also among the top earners on Wednesday morning.

Spotify shares fell 9% despite better first-quarter results. Tech Resources grew nearly 8%.

Twitter (TWTR) fell nearly 2% after falling 3.9% on Tuesday. and the electric-vehicle giant Tesla (TSLA) rose nearly 4% on Wednesday morning.

Among the leaders of the Dow Jones, Apple (AAPL) was slightly higher, while Microsoft jumped 4% in today’s market share.

Amid a new stock market correction, Dow Jones leader American Express (AXP) — together Expedia (XPE), Palo Alto Networks (PANW) and IBD Leaderboard Watchlist Stocks world Wrestling Entertainment (WWE) — Among Wednesday’s top stocks worth watching.

Microsoft and Tesla are IBD leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s Stocks Near a Buy Zone column.

Dow Jones Today: Treasury Yield, Oil Prices

After Wednesday’s open, the Dow Jones Industrial Average advanced 0.8%, while the S&P 500 gained 1.1%. The Nasdaq was up 1.4% in morning trading.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%. The SPDR S&P 500 ETF (SPY) rose 0.5%.

The 10-year Treasury yield was trading near 2.76% on Wednesday after closing at 2.77% on Tuesday. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, US oil prices edged higher, with Texas Intermediate crude trading above $102 a barrel.

stock market correction worsens

On Tuesday, major stock indices were selling with gains. The disappointing action sent the Nasdaq and the S&P 500 below Monday’s lows. This ended a very brief rallying effort. This sent the Nasdaq back below its low since mid-March, marking the index’s lowest level since March 2021. The S&P 500 remained above its mid-March low.

What happens next is not clear. As the market enters the last few sessions of April, a rebound could trigger another fresh rally attempt. In the midst of a massive stock market crash, investors must be on the defensive: taking profits and raising cash. Also, monitoring stocks that have a good hold on a down market is a good way to prepare for the next uptrend.

Finding the leaders of the next rally while the market is still correcting is a challenge. A helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance versus the S&P 500. If the stock is outperforming the broader market, the RS line curves upward. If a stock is lagging behind the rest of the market, the line will point downward.

Tuesday’s The Big Picture column commented, “As noted among panelists on Tuesday’s IBD Live show, many market technicians waited to see if the major indexes hit their March near-term lows.” Doing so, could trigger an increasingly weak action. An increase in fear and climactic selling action could trigger a fresh surge in equities.”

If you are new to IBD, take a look at its stock trading system and the fundamentals of CAN SLIM. Recognizing chart patterns is one of the keys to investment guidelines. IBD offers a wide range of growth stock lists such as leaderboards and swing trader.

Investors can also create watchlists, find companies near a buying point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones Earnings: Boeing, Visa

Dow Jones shares Boeing and Visa reported their quarterly earnings results ahead of Wednesday’s open.

Boeing missed first-quarter estimates, returning 6% in early trading. Boeing shares ended Tuesday at their 52-week high and nearly 35% below the 50- and 200-day lines.

Visa jumped 8% early Wednesday after the company beat Wall Street estimates. Visa shares are up 20% from their 52-week high.

Dow Jones Stocks to Watch: American Express

Dow Jones financial stock American Express ended Tuesday below its 50-day line and about 8% off the cup-with-handle’s 194.45 buy point after Tuesday’s 3% slide. Shares of AXP fell 0.3% on Wednesday morning.

Keep an eye on the relative strength line of the stock. Amidst its recent rise, the RS line is starting to move closer to its old high, which means it is again outperforming the broader market.

Four Top Growth Stocks to Look forRstock market correction

Stocks to watch: Expedia, Palo Alto, WWE

Thursday’s IBD Stock of the Day, Expedia, continues to form a cup with a 204.08 buy point, according to IBD MarketSmith chart analysis. Shares are falling below their 50-day line after falling 4.4% on Tuesday. EXPE stock shows a 92 out of 99 IBD overall rating, according to IBD Stock Checkup. Shares were up about 3% on Wednesday morning.

Top cybersecurity stock Palo Alto Networks is still holding above much-needed support after triggering a round-trip sell signal from a 572.77 buy point on the 50-day line. The stock fell 3.2% on Tuesday. PANW stock rose over 1% in the early hours of Wednesday.

IBD leaderboard watchlist stock World Wrestling Entertainment also remained above its 50-day moving average, falling just 0.3% on Tuesday. Shares are just below the 60.94 buy point in a cup with handles. WWE stock was down 1.3% on Wednesday morning.

Join IBD experts as they analyze key stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla’s stock rose nearly 4% on Wednesday morning after the stock broke through the 50- and 200-day lines during Tuesday’s 12.2% dive.

Shares of the EV giant ended up about 24% off the cup-with-handle’s 1,152.97 buy point on Tuesday. The stock traded at a high of 1,243.49 on November 4 and is about 30% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones shares, Apple shares left support on its longer-term 200-day line, which slipped 3.7% on Tuesday. Shares were up on Wednesday morning.

Software leader Microsoft lost 3.7% on Tuesday, falling below its 50- and 200-day lines. The stock closed down nearly 23% from its 52-week high.

Late Tuesday, Microsoft beat analysts’ expectations for its fiscal third quarter on a strong cloud computing business. It also provided in-line sales guidance for the current quarter. MSFT shares jumped 4% in early trade.

Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.

You may also like:

Top growth stocks to buy and see

Learn How to Time the Market with IBD’s ETF Market Strategy

Find the Best Long-Term Investments with IBD Long-Term Leaders

MarketSmith: Research, charts, data & coaching all in one place

How to Research Growth Stocks: Why This IBD Tool Makes Finding Top Stocks Easier?

Leave a Reply