The Dow Jones Industrial Average rallied Wednesday morning, as the major stock indexes looked to rebound from Tuesday's stock market sell-off. Apple and Tesla stock tried to bounce back from sharp losses. And Cadence Design Systems, Diamondback Energy, Matador Resources, Lowe's, Mosaic and Palo Alto Networks were key earnings movers ahead of Wednesday's open.
Among the Dow Jones leaders, Apple rose 1% and Microsoft traded up 1.2% in today's stock market. American Express, a Dow Jones stock to watch, remains in buy range following a recent breakout.
Electric-vehicle leader Tesla rallied more than 1% premarket Wednesday, looking to snap a three-day losing streak.
Amid a volatile stock market rally, Anthem, Northern Oil & Gas, and O'Reilly Automotive are among Wednesday's top stocks to watch. All three stocks are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. O'Reilly is featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Crisis
After the stock market open Wednesday, the Dow Jones Industrial Average traded up 0.7%, while the S&P 500 rallied 0.8%. The Nasdaq was up 1% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1%, and the SPDR S&P 500 ETF moved up 0.8% after Wednesday's open.
The 10-year Treasury yield ticked up to 1.97% Wednesday morning. On Tuesday, the 10-year Treasury yield closed just below 1.95%. Meanwhile, U.S. oil prices dropped almost 1% Wednesday, with West Texas Intermediate crude falling below $92 a barrel.
On Wednesday, Ukraine declared a state of emergency and called for its citizens to leave Russia due to the growing threat of war. Earlier this week, Russian President Vladimir Putin recognized the independence of two Russian-led breakaway regions of Ukraine, and the West responded with modest penalties.
Stock Market Rally Struggles
The stock market posted more disappointing action Tuesday, as the major stock indexes closed with more heavy losses. Amid the recent volatility, now is an important time to read IBD's The Big Picture column.
Tuesday's The Big Picture commented, "The Nasdaq registered its fourth-straight loss and its sixth in seven sessions. A 1.2% drop marks the sixth time in which the tech-heavy composite index fell 1% or more in the month of February alone."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Stock Market Earnings: Cadence, Diamondback, Matador, Mosaic, Palo Alto
IBD Long-Term Leader Cadence Design Systems beat Wall Street's targets for the fourth quarter and guided much higher for the year ahead. CDNS shares jumped more than 10%.
Energy leaders Diamondback Energy and Matador Resources reported after the close Tuesday.
Diamondback rallied around 1.5% Wednesday morning after topping fourth-quarter earnings targets. FANG shares finished Tuesday extended past a 117.81 buy point.
Matador reported strong fourth-quarter results, as the stock traded up 3% in morning trade. Matador remains above its 50-day line after a failed breakout past a 47.33 cup-base entry.
Lowe's climbed 3% early Wednesday after the home improvement retailer beat fourth-quarter targets and raised its earnings forecast for the year.
Mosaic shares tumbled almost 4% early Wednesday after the company's weaker-than-expected fourth-quarter results.
Cybersecurity leader Palo Alto Networks reported January-quarter earnings and revenue Tuesday that topped Wall Street targets. PANW shares climbed 6% in morning trade.
Dow Jones Stocks To Watch: American Express
American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares are still in the 5% buy range that tops out at 198.59 despite three straight days of losses. AXP stock traded slightly higher Wednesday.
Bullishly, the stock's relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Anthem, Deere, Northern, Wyndham
IBD Leaderboard stock Anthem is about 5% away from a 470.12 flat-base entry following Tuesday's 0.5% fall. The stock is just below its 50-day line. Anthem shares were up 0.5% Wednesday.
O'Reilly Automotive is building a flat base with a 710.96 buy point, and shares are about 8% away from the new buy point after Tuesday's 3.7% loss. ORLY stock fell decisively below its key 50-day line Tuesday, a setback for the stock's basing process. Shares were slightly higher early Wednesday.
Northern Oil & Gas is about 9% away from a cup with handle's 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares were up more than 1% Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied more than 1% Wednesday morning, looking to rebound from Tuesday's 4.1% skid and snap a three-day losing streak. The stock closed below its long-term 200-day line for the first time since July 27, another setback for the former stock market leader. There is no proper entry in sight, as the stock continues to consolidate.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 34% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 1.8% Tuesday, falling further below the key 50-day line. Despite recent losses, shares continue to build a cup-with-handle base with a 176.75 buy point. Apple shares rose 1% Wednesday.
Software leader Microsoft lost less than 0.1% Tuesday, but still extended a losing streak to four sessions. Last week, the top Dow Jones stock gave up support around its long-term 200-day line. MSFT stock moved up 1.2% Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
