Dow Jones Futures Fall As Netflix Slides On Earnings; Tesla Earnings Due

Dow Jones futures fell 25 points early Wednesday, as Netflix (NFLX) stock slid on earnings. Tesla (TSLA) earnings are due after the close, as the EV giant approaches all-time highs.


Among the Dow Jones leaders, Apple (AAPL) fell 0.2% premarket Wednesday, while Microsoft (MSFT) moved up 0.3% in today’s stock market. American Express (AXP), Goldman Sachs (GS) and JPMorgan Chase (JPM) eyed new buy points in the current rally.

Dow Jones stock Verizon (VZ) reported earnings Wednesday morning. IBM (IBM) will report after the close. In other stock market earnings, ASML (ASML), Intuitive Surgical (ISRG) and Netflix reported earnings ahead of Wednesday’s open.

Tesla lost 0.3% premarket Wednesday, threatening to add to Tuesday’s 0.7% loss. The EV giant is near record highs ahead of the company’s results after the close.

Among the top stocks to buy and watch, Advanced Micro Devices (AMD), Alphabet (GOOGL), CrowdStrike (CRWD) and Nvidia (NVDA) are in or near new buy zones.

Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. AMD was featured in this week’s Stocks Near A Buy Zone story. CrowdStrike was featured in last week’s IPO Leaders column. Nvidia is an IBD SwingTrader stock.

Dow Jones Futures Today

Ahead of the stock market open Wednesday, Dow Jones futures lost 0.1% vs. fair value, while S&P 500 futures inched higher. Nasdaq 100 futures rose 0.1% vs. fair value. Remember that pricing in Dow Jones futures and elsewhere doesn’t necessarily follow suit in the next regular stock market session.

Among exchange traded funds, Innovator IBD 50 (FFTY) hadn’t started trading yet premarket Wednesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.1%. And the SPDR S&P 500 ETF (SPY) descended 0.1%.

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Stock Market Rally

The stock market rally continues to strengthen, as the Nasdaq and S&P 500 notched five-day win streaks Tuesday. All three major stock indexes — the Nasdaq, the Dow Jones Industrial Average and S&P 500 — are above their key 50-day moving averages.

This is an important time to read The Big Picture.

On Tuesday, The Big Picture commented, “Take a close look at the prior four sessions by the Nasdaq composite. You’ll see that each day since Oct. 13, the tech-enriched index closed at or very near its session high. Strong closes point to strong demand for stocks. And how about Tuesday’s session? No different. A daily chart also shows a gap between Monday’s intraday high of 15,026 and Tuesday’s intraday low of 15,049. Such gaps are bullish.”

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Dow Jones Stocks To Watch: Amex, Goldman, JPMorgan

American Express is just 1% away from a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were flat premarket Wednesday.

Goldman Sachs was unchanged premarket Wednesday, as it trades about 2% away from a 420.86 buy point in a flat base. Meanwhile, JPMorgan is in the 5% buy zone past a 163.93 entry in a cup with handle and has bounced off the 50-day moving average. The 5% buy area tops out at 172.13. JPM stock inched lower in early morning trade.

American Express and Goldman Sachs both have a strong relative strength line. Strong relative strength lines at the start of new uptrends are indicative of potential market leaders.

Dow Jones Earnings: IBM, Verizon

Dow Jones stock Verizon reported earnings ahead of Wednesday’s market open, while IBM will report after the close.

Verizon reported mixed quarterly results Wednesday morning, topping earnings estimates, but missing sales targets. Verizon stock rallied nearly 1% in premarket trade, but is still sharply below its 50- and 200-day moving averages, about 15% from its 52-week high.

IBM is expected to earn $2.52 per share on sales of $17.7 billion, according to IBD data. IBM stock is tracing a cup with handle that has a 146.10 buy point.

Stock Market Earnings: ASML, Intuitive Surgical, Netflix

Ahead of Wednesday’s open, ASML reported better-than-expected Q3 earnings, but missed sales targets and cut revenue guidance in the current quarter due to a materials shortage in its supply chain. Shares slid nearly 3% in premarket trade. ASML shares are consolidating below their 10-week line.

Intuitive Surgical narrowly beat Wall Street’s quarterly forecasts Tuesday and reported bullish growth for its da Vinci robotic surgery system. The company reported $1.4 billion in third-quarter sales, growing 30% year over year. Meanwhile, adjusted earnings per share increased more than 29% to $1.19. The stock traded less than 1% lower premarket.

Late Tuesday, Netflix earned $3.19 a share on sales of $7.48 billion in the third quarter, topping earnings estimates and meeting sales targets. Meanwhile, the company added 4.38 million new streaming subscribers in the September quarter. Analysts expected Netflix to add 3.78 million subscribers, vs. the company’s own forecast for 3.5 million.

Netflix shares slid over 2% premarket Wednesday. They ended Tuesday out of the 5% buy area past a 593.39 buy point and near new highs.

Stocks To Buy And Watch: AMD, Alphabet, CrowdStrike, Nvidia

IBD Leaderboard stock Advanced Micro Devices Tuesday broke out past a 114.59 buy point out of a double-bottom base and is in buy range. AMD stock lost 0.3% premarket Wednesday.

According to IBD Stock Checkup, AMD boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

FANG stock leader Alphabet looked to extend a win streak to six sessions Wednesday, but was unchanged premarket Wednesday. The stock is back above its 50-day line and above a short trend line. Meanwhile, shares are approaching a 2,925.17 buy point in a flat base, according to IBD MarketSmith chart analysis.

Cybersecurity leader CrowdStrike is nearing a 289.34 buy point in a cup base after last week’s bullish retake of the 50-day line. Shares were slightly lower premarket Wednesday. The stock is an IPO Leader.

IBD SwingTrader stock Nvidia handily reclaimed its 50-day line during Thursday’s nearly 4% advance. NVDA stock is tracing a cuplike base with a buy point at 230.53. The stock inched lower premarket Wednesday. Bullishly, the stock’s relative strength line is nearing a new high, reaffirming its leadership status.

Join IBD experts as they analyze leading stocks in the new stock market uptrend on IBD Live

Tesla Earnings Due

Tesla stock fell 0.3% premarket Wednesday, threatening to add to Tuesday’s moderate loss ahead of the company’s Q3 earnings after the close.

FactSet’s poll of analysts expects Tesla to earn $1.62 a share, more than double the year-ago period. They see sales coming in around $14 billion, 60% higher than last year.

TSLA shares are now comfortably above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The stock closed Tuesday about 4% below record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple fell 0.2% premarket Wednesday following Tuesday’s bullish retake of its key 50-day line. A new cup base is forming that has a 157.36 buy point, according to IBD MarketSmith chart analysis.

Software giant Microsoft rose 0.3% premarket Wednesday, as the stock moves further above its latest buy point. The flat base had a 305.94 buy point.

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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