- Dow Jones futures and other major stock indexes threatened to end their rallies in morning action Tuesday, as Walt Disney (DIS) dived on a quarterly revenue miss.
- Artificial intelligence play Palantir Technologies (PLTR) plunged on first-quarter earnings results on the stock market today.
- Early Tuesday, the 10-year Treasury yield ticked lower to 4.47%. Further, oil prices fell as West Texas Intermediate futures traded around $78.30 a barrel.
Major stock indexes face a potential halt in their rallies as Disney and Palantir Technologies report disappointing earnings, while the 10-year Treasury yield and oil prices fall.
Stock Market Today: Disney, Palantir Earnings
Late Monday, entertainment behemoth Disney reported mixed fiscal second-quarter results. Disney topped earnings estimates as its streaming services nearly broke even, but the company missed sales targets. Shares plunged nearly 5% in early trade. Meanwhile, Palantir reported in-line quarterly earnings and higher sales numbers than expected. But shares plunged more than 11% in premarket trade. Shares of the AI leader had surged 8.1% Monday to retake their 50-day moving average.
Dow Jones Rises
On Monday, the Dow Jones Industrial Average moved up 0.5% and the S&P 500 climbed 1%. The tech-heavy Nasdaq composite gained 1.2%. Monday’s The Big Picture column commented, “Indeed, indexes had a few chances to mark a follow-through rally confirmation but came up short due to lower volume from the previous session. Still, we can’t get too down on the stock market, which is why IBD has been increasing its recommended stock market exposure.”
Stock Market Today: Best Stocks To Watch
Chipotle Mexican Grill (CMG), NXP Semiconductor (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch on the stock market today. Chipotle and Merck featured in this Stocks Near A Buy Zone column.
Dow Jones: American Express Below Buy Point
American Express is bouncing back in heavy volume from support around its 50-day moving average. The bullish rebound has placed the software leader in a new buy area, while shares are just above a 231.69 entry in a short consolidation. Shares were up 0.5% on the stock market today.
Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) declined 1% and 1.3%, respectively, in Tuesday’s morning action. Nvidia stock rallied further above the 50-day line Monday, continuing to build a base that has a 974 buy point. Meanwhile, an early buy trigger is in play at 888.19, which was the high on April 30. The AI giant is an IBD Leaderboard stock.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Tuesday’s stock market open. Apple stock slipped 0.9% Monday, giving back a part of Friday’s gains. Shares are back above their 200-day line and forming the right side of a new base. The stock rose 1% Tuesday morning. The Apple “Let Loose” event is expected to start at 10 a.m. ET. Two new iPad Pro models are expected, the 11-inch and the 12.9-inch models, according to Forbes. Meanwhile, company watchers expect a new design that changes the look of the tablets for the first time in more than three years.
Conclusion
Despite some disappointing earnings reports from Disney and Palantir Technologies, the Dow Jones Industrial Average managed to rise 0.5% on Monday. With the 10-year Treasury yield and oil prices falling, investors are keeping a close eye on stocks like American Express, Nvidia, Apple, and Microsoft. As the market continues to fluctuate, it’s crucial for investors to stay informed and adjust their strategies accordingly.
