The Dow Jones Industrial Average briefly fell 100 points Tuesday, as Tesla stock skidded despite strong earnings results. Tech giants Alphabet, AMD and Microsoft will report earnings after the close.
Among the Dow Jones leaders, Apple (AAPL) fell 0.2% Tuesday, while Microsoft (MSFT) moved own 0.3% in today’s stock market. Dow Jones stock Disney (DIS) is approaching a new buy point, but remains below a key level.
Dow Jones Today
The Dow Jones Industrial Average fell 0.2%, while the S&P 500 also lost 0.2%. The tech-heavy Nasdaq composite declined 0.5% in morning trade.
Among exchange traded funds, the Innovator IBD 50 (FFTY) shook off early losses and gained a fraction Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) was down 0.1%.
Stock Market Rally: Dow Jones Falls From Highs
Amid the current stock market rally, the Dow Jones Industrial Average was on pace to fall for a second straight day Tuesday, easing further away from new highs. The S&P 500 notched a new high Monday.
Meanwhile, the tech-heavy Nasdaq sits off its own all-time highs amid Tuesday’s slight fall.
Monday’s Big Picture commented, “The Nasdaq took out its April 16 high, rising 0.9%. The index is closing in quickly on its mid-February all-time high of 14,175.”
For more stock market commentary, check out IBD’s The Big Picture.
Bitcoin Hits $55,000; Coinbase Falls
Bitcoin rallied back above $55,000, trading as high as $55,351 Tuesday morning before easing. Bitcoin traded around $55,000 in morning trade. On April 14, Bitcoin topped out at $64,829, according to Coindesk.
The Grayscale Bitcoin Trust (GBTC) gained 1.6% Tuesday morning, on pace to add to Monday’s over-8% surge. The Bitcoin-tracking ETF broke down below its key 50-day line last week and is still below that critical level.
Cryptocurrency exchange Coinbase inched lower Tuesday morning, threatening to fall after Monday’s 4.4% rally. Shares hit a post-IPO low Friday and are about 28% off their high of 429.54.
The stock’s weakness illustrates the importance of waiting for an IPO base to form before jumping into hot IPO stocks.
Dow Jones Stocks: Disney’s New Buy Point
Dow Jones media giant Disney is working on a new flat base with a 203.12 buy point, according to IBD MarketSmith chart analysis. Shares rallied 0.4% Tuesday morning, but remain below their key 50-day moving average.
A previous breakout above a 183.50 flat-base entry on Feb. 8 led to some immediate gains. But those gains have dissipated since early March.
Stocks To Buy And Watch: Generac, Nvidia, PayPal
IBD Leaderboard stock Generac is trading just off a cup-with-handle’s 342.38 buy point, according to IBD MarketSmith chart analysis. Shares are also rebounding from their 50-day line amid Tuesday’s 0.6% gain.
Per Leaderboard commentary, “Generac’s chart shows a handle that offers a lower buy point; now it’s facing a crucial test of support near the 50-day moving average. Overall, the base is still forming above the 50-day moving average, which is good.”
Graphics-chip maker Nvidia is above its 615 buy point in a new cup base after retaking the buy point Monday amid the day’s 1.4% gain. The 5% buy zone goes up to 645.75. Shares edged higher Tuesday morning.
According to IBD Stock Checkup, Nvidia stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
The digital-payments leader will report earnings on May 5. Analysts expect the company to earn $1.01 a share on revenue of $5.9 billion, according to IBD data.
Stock Market Earnings: Alphabet, AMD
Tech giants Alphabet and Advanced Micro Devices will report earnings after the close Tuesday.
Alphabet is expected to earn $15.76 a share on revenue of $51.5 billion. GOOGL shares are extended past a 2,145.24 buy point in a flat base.
Analysts expect chip giant AMD to earn 44 cents per share on sales of $3.18 billion. AMD stock is about 14% off its 52-week high after recently regaining its 50-day line.
Tesla earnings beat analyst estimates late Monday. The company reported an adjusted 93 cents per-share earnings on revenue of $10.39 billion. Analysts polled by Zacks Investment Research expected EPS of 79 cents, a 216% year-over-year surge. Sales were seen jumping 66% to $9.92 billion.
The EV leader delivered 184,800 vehicles in Q1, up 109% and beating estimates for 168,000.
Tesla stock skidded 4% Tuesday morning despite the company’s strong results. The EV giant is forming a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Software giant Microsoft traded 0.4% lower Tuesday. Microsoft is trading out of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.
After the close Tuesday, Microsoft is expected to earn $1.78 a share on revenue of $41 billion.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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