The Dow Jones Industrial Average closed slightly lower amid a mixed day for the major indexes. Goldman Sachs results were mixed as the stock dragged the Dow. A trio of Bill Ackman stocks are near entries. Netflix whipsawed late after it reported earnings.
Meanwhile, there was a cluster of breakouts despite the tentative action. Lockheed Martin, Crocs and M/I Homes all tested buy points.
Treasury yields were mixed. The 10-year yield fell 1 basis point to 3.58% while the two-year yield rose 3 basis points to 4.22%, making the yield curve more inverted.
Nasdaq Lags As IBD 50 Shines
The Nasdaq closed off lows, ending essentially flat but nominally negative. Sirius XM struggled here as it fell 2.8%.
The benchmark S&P 500 fared best out of the major indexes as it closed up 0.1%. Catalent lagged as it plunged 7.4%. The stock has been trending lower since 2021.
The S&P 500 sectors were mixed. Industrials, energy and technology were the top performers. Health and communication services were the worst laggards.
Small caps were lagging, with the Russell 2000 ending the day down 0.4%. But growth stocks excelled, with the Innovator IBD 50 ETF up 1.9%.
Dow Jones Today: JNJ Stock Slumps Despite Earnings
The Dow Jones index ended the day almost as it started. It lost just 11 points, meaning it closed virtually flat.
Goldman Sachs stock skidded on a mixed quarterly report. The firm beat on earnings, but revenue came in below Wall Street forecasts.
GS stock pared early losses and ended the day down 1.7%. It is trading below the key 50-day moving average, according to MarketSmith analysis.
In contrast, banking giant JPMorgan Chase was a top performer on the Dow Jones today with a gain of 1.1%.
Boeing fared even better with a 1.6% lift, while Home Depot rose 1.2%.
Johnson & Johnson was the worst-performing Dow component. It fell 2.8% despite an earnings beat. It continues to suffer from an overhang amid claims that the talc in its baby powder products caused cancer.
These Bill Ackman Stocks Are Near Entries
Famed billionaire investor Bill Ackman is one of the world's top hedge fund managers. A trio of stocks held by his firm Pershing Square are currently near buy points.
Restaurant Brands is in a buy zone above a cup-with-handle entry of 67.95. This is a first-stage pattern, which means it has a better chance of success.
The Burger King franchisee has a very strong IBD Composite Rating of 90 out of 99. Big Money has been snapping up the stock of late, with its Accumulation/Distribution Rating coming in at B-.
Chipotle Mexican Grill is actionable above a cup-base buy point of 1,724.81. This is also an early-stage base. This stock boasts excellent stock market and earnings performance. Earnings are due April 25.
An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce buying risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Netflix Stock Whipsaws After Earnings
Netflix stock closed the regular session slightly higher but traded wildly following its earnings report after the close. It took a sharp dive before recovering the bulk of its losses.
NFLX ended the session just below a cup-with-handle entry of 349.90 after it rose 0.3%. This is an early-stage base, MarketSmith analysis shows.
The streaming service posted EPS of $2.88 and revenue of $8.16 billion. It also announced it was winding down its iconic DVD mailing business, where users receive disks sent out in red envelopes.
Wall Street expected Q1 profit to fall 20% to $2.83 per share, according to Zacks Investment Research. Revenue had been seen climbing 4% to $8.18 billion.
Netflix is trying to cut costs amid increasing competition. Netflix is expected to boost its bottom line by 19% this year and 25% in 2024.
In February, Netflix cut subscription prices in over three dozen countries. This is not happening in the lucrative North American and Western European markets, though.
Netflix ended 2022 with 230.75 million streaming subscribers worldwide. Of those, 32% are in the U.S. and Canada.
The streaming company is also trying to clamp down on password sharing, which Netflix has said could be happening with up to 100 million accounts.
Futures: Netflix Volatile Late; TSLA Eyes Buy Points With Earnings Due
Outside Dow Jones: Lockheed Martin Leads Breakouts
A trio of stocks topped buy points despite the mixed action.
Lockheed Martin is in a buy zone after clearing a flat-base entry of 499.05.
The maker of the F-22 and F-35 advanced fighter jets broke out after it topped earnings expectations. Lockheed guided for full-year earnings of $26.60 per share to $26.90 per share on $65 billion to $66 billion in net sales.
Crocs stock cleared a cup-with-handle entry of 143.60, but volume was not impressive. The IBD Sector Leader also saw its relative strength line hit fresh heights.
One reason for caution here, despite outstanding overall performance, is the shoemaker's earnings are due April 27.
M/I Homes is in the buy zone of a cup-with-handle base. The ideal entry point here is 63.57. But volume was below average.
This stock has a perfect IBD Composite Rating of 99. It also has earnings soon, on April 26.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
