The Dow Jones Industrial Average reversed lower to start the first week of fourth-quarter earnings season. The blue chip index was down 0.2% around 3 pm ET after rising nearly 1% earlier today. It remained above its 50-day moving average.
The S&P 500 also pared some gains and was up less than 0.5% in afternoon trading. It has also risen above its 50-day line today. The Nasdaq led with a 1% gain and was approaching the 50-day line. But it also gave back some gains. The small-cap Russell 2000 rose nearly 1%.
Volume rose on the NYSE and fell on the Nasdaq compared with the same time on Friday.
Several stocks topped buy points but some faded below the entries. Modine (MOD), SLB (SLB) and Amkor (AMKR) still held up, however.
The Innovator IBD 50 ETF (FFTY) was up 0.4%.
Crude oil rose 1% to trade at $74.67 a barrel. The yield on the benchmark 10-year Treasury note fell 5 basis points to 3.55%.
According to the latest data from S&P Global Market Intelligence, real GDP rose to 2% in 2022. Strong numbers from trade and inventories in November resulted in above trendline GDP growth in the second half of the year.
Joel Prakken, co-head of US economics at S&P Global Market Intelligence, said, “An emerging risk is that the economy remains stronger for longer than previously anticipated, requiring a more aggressive and persistent monetary tightening to prevent higher inflation from becoming entrenched.”
A mild recession remains a strong possibility in the first half of 2023.
Stocks Moving Today
Shares of Above (UBER) rose nearly 5% after an upgrade to overweight from Piper Sandler analyst Alexander Potter. The new price target is 33. Uber is forming a base with a buy point of 31.92.
Also up after an analyst upgrade is Oracle (ORCL). It got an overweight rating from Piper Sandler analyst Brent Bracelin, with a price target of 104, up from 85. Shares have risen 1%. The stock’s relative strength line is also at a 52-week high.
elsewhere, Regeneron Pharmaceuticals (REGN) is down over 6% and is on pace for its largest decline since March 20, 2o20. In its preliminary update, Eylea sales of $1.5 billion were lower than FactSet estimates of $1.64 billion.
Caterpillar (CAT) is in a buy zone from a cup-with-handle base and buy point of 238. CAT is on IBD Leaderboard.
Bed Bath & Beyond (BBBY) popped over 30% with strong volume even as bankruptcy haunts the home goods company. Shares, however, are trading below 1.75. Earnings are due Tuesday.
Commercial leasing stocks are rising today. McGrath Rent Corp (MGRC) broke out of a flat base with a buy point of 100.40 Friday and is back to the buy point today. H&E Equipment Services (HEES) is in a buy zone after a breakout past 47.27.
Amkor (AMKR) is above its buy point of 29.20 in a cup base. Halliburton (HAL) broke out of a cup-with-handle base and buy point of 40.09.
Retail stocks Macy’s (M) and Lululemon (LULU) fell over 7% each after warning about dismal holiday season sales.
Earnings On Deck For Dow Jones Stocks
Commercial Metals (CMC) is up fractionally after strong earnings today. Shares are in a buy zone after the stock found support at the 10-week moving average.
On Friday, Dow Jones leaders JPMorgan Chase (JPM) and UnitedHealth (UNH) will report earnings before the open. JPM is approaching a buy point of 138.76 in a flat base. UNH is well below its 50-day line.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
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