The Dow Jones Industrial Average continued to rally Wednesday, as global markets showed broad strength following Tuesday's U.S. stock market advance. Bunge, Chipotle Mexican Grill, CME Group, CVS Health, Lyft and Paycom Software are key earnings movers Wednesday.
Among the Dow Jones leaders, Apple rose 0.8% Wednesday, while Microsoft rallied 1.4% in today's stock market. American Express, a Dow Jones stock to watch, is in buy range after Tuesday's breakout.
Electric-vehicle leader Tesla rallied 1.5% Wednesday, looking to add to Tuesday's 1.6% advance.
Solar stocks rallied in early trade following a stronger-than-expected report for the fourth quarter from Enphase Energy. Enphase spiked more than 24% in early action. The Invesco Solar ETF scrambled 6% higher.
Amid a volatile stock market rally, Alphabet, Blackstone, CF Industries and Stifel Financial are among Wednesday's top stocks to buy and watch. All four are in or near new buy zones.
Microsoft, Stifel and Tesla are IBD Leaderboard stocks. American Express and Blackstone were featured in this week's Stocks Near A Buy Zone column. Alphabet is an IBD Stock of the Day.
Dow Jones Today: Treasury Yields
After the stock market open Wednesday, the Dow Jones Industrial Average rose 0.65%, while the S&P 500 gained 0.9%. The Nasdaq advanced 1.2%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 1.2%, and the SPDR S&P 500 ETF gained 0.9% after Wednesday's open.
The 10-year Treasury yield retreated below 1.93% Wednesday morning, after closing above 1.95% on Tuesday. Meanwhile, U.S. oil prices turned slightly higher, as West Texas Intermediate crude held above $89 a barrel. WTI briefly topped $93 a barrel last week.
Stock Market Rally
The stock market posted solid action Tuesday, as all three major stock indexes logged strong gains. Amid the recent volatility, now is an important time to read IBD's The Big Picture column.
Tuesday's The Big Picture commented, "Despite the uneven trading, the stock market indexes have settled into a pattern the past several days. The S&P 500 is holding above its 200-day moving average but capping gains around 4,500. The Nasdaq is largely trading above 14,000 and below 14,200. The Dow is more safely above its 200-day line, while trading mainly below the 50-day moving average."
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: Chipotle, CVS, Lyft
After the close Tuesday, Chipotle Mexican Grill, Lyft and Paycom Software reported their quarterly earnings results. Meanwhile, Bunge, CME Group and CVS Health reported before Wednesday's open.
Grain processor Bunge topped earnings and sales targets, as shares rose almost 1% in Wednesday's morning trade. Bunge shares ended Tuesday in a buy range past a 97.09 cup-base entry after recovering from a post-breakout decline.
CMG shares jumped 10% Tuesday after the restaurant's better-than-expected earnings results. The stock finished Tuesday about 25% from its 52-week high.
CME Group reported mixed results with earnings topping estimates, but sales missing targets. CME stock was up 1.5% in morning trade. Shares closed Tuesday in buy range past a 232.74 flat-base buy point.
Pharmacy giant CVS Health fell around 3% Wednesday despite reporting better-than-expected fourth-quarter results. CVS stock hit the 20%-25% profit-taking zone from a 90.71 flat-base entry this week.
Lyft skidded more than 4.5% Wednesday morning following the company's disappointing outlook for the current quarter. LYFT shares are about 40% from their 52-week high.
Paycom climbed more than 8% after strong earnings results late Tuesday. PAYC stock is sharply below its 50- and 200-day lines.
Dow Jones Stocks To Watch: American Express
American Express advanced 3.3% Tuesday, breaking out past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares are in the 5% buy range that tops out at 198.59. AXP stock traded up 0.5% 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: Alphabet, Blackstone, CF Industries, Stifel
Outside the 30-stock Dow Jones industrials, FANG stock Alphabet attempted a breakout past a 3,019.43 buy point following strong earnings results last week, but fell more than 7% below the new entry following recent losses. GOOGL shares reversed from sharp losses to rise 0.1% Tuesday. Shares were up 1.2% Wednesday.
Despite Alphabet's sell signal, last week's strong earnings reaction was a big positive. Keep an eye on the search giant; it could be adding a handle to its current formation which could potentially result in a new entry.
Top financial stock Blackstone is trying to break out past a double-bottom base's 136.56 buy point, but the stock is about 6% below the entry following four straight days of losses. Wait for the stock to stage another decisive move past the entry before considering a purchase of shares. Shares rose 2.2% Wednesday.
Fertilizer producer CF Industries undercut its ascending base's 74.87 buy point during Monday's 3.5% fall. However, the breakout attempt remains in play, with the pullback stopping at the stock's short-term 21-day moving average. CF stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Shares traded up 1.2% Wednesday.
IBD Leaderboard stock Stifel Financial is squarely above a 78.70 buy point in a consolidation after Tuesday's 5.25% advance. Its RS line hit another new high Tuesday. Shares were up 1.25% Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose 1.5% Wednesday, on pace to add to Tuesday's 1.6% rise. The stock found much-needed support at its long-term 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 26% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 1.85% Tuesday, snapping a three-day losing streak and finding support at its 50-day moving average. Shares are again about 14% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.8% Wednesday.
A new base is likely forming, but it is slightly too early for a proper buy point. However, a decisive move past Thursday's high of 176.24 could be used as an early entry for aggressive investors.
Software leader Microsoft gained 1.2% Tuesday, as the top Dow Jones stock continues to build a new base. But shares remain below their 50-day line. The company received a modest boost late Tuesday, when its Minecraft Dungeons video game reported via Twitter that it had reached 15 million players. MSFT stock was up 1.4% Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
