Dow Jones futures were higher ahead of Tuesday's open after the Dow Jones Industrial Average cut gains to 72 points Monday. Warren Buffett stock Occidental Petroleum reported earnings after the close Monday, while Tesla is set to hold its investor day on Wednesday, with CEO Elon Musk teasing a reveal of "Master Plan 3" details.
Warren Buffett Stock Reports Earnings
Occidental Petroleum missed its Q4 earnings targets late Monday, sparking a 2% fall in extended trade. The Warren Buffett-backed energy giant reported earnings falling 9% to $1.61 per share in Q4 while revenue increased 4% to $8.22 billion. On the year, EPS ballooned 267% to $9.35 while sales shot up 43% to $37.1 billion. Occidental also upped its dividend and announced a $3 billion stock repurchase plan.
Billionaire investor Buffett has been on Occidental Petroleum stock buying spree lately, with his Berkshire Hathaway (BRKA) adding more than 20 million OXY shares to its portfolio since July 2022. Berkshire Hathaway has raised its stake in OXY to 21.4% of the company, according FactSet.
Elsewhere on the earnings front, Workday dropped more than 2% after reporting Q4 results, while Zoom Video Communications jumped 6% in after-hours trading.
Other notable companies reporting earnings this week are C3.ai, Costco Wholesale, Dollar Tree, Kohl's, Lowe's, Macy's, Ross Stores and Salesforce.
Stock Market Today
On Monday, the Dow Jones Industrial Average rose 0.2% and the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite rallied 0.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.7% and SPDR S&P 500 climbed 0.3%.
Electric-vehicle giant Tesla traded up 5.5% Monday. Among Dow Jones stocks, Apple rose 0.8% and Microsoft climbed 0.4% in today's stock market.
IBD Leaderboard watchlist stock Palo Alto Networks, Deere, Toll Brothers and Wingstop — as well as Dow Jones stocks American Express, Cisco Systems and JPMorgan Chase — are among the top stocks to watch amid the recent stock market weakness.
Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent IBD Stock Of The Day pick. American Express and Toll Brothers were featured in this week's Stocks Near A Buy Zone column.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.3% vs. fair value, and S&P 500 futures rose 0.4%. Nasdaq 100 futures were up 0.45% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The 10-year U.S. Treasury yield fell Monday, settling at 3.92%. Oil prices dropped less than 1% Monday, pausing after a two-session rally. West Texas Intermediate futures traded just below $76 a barrel.
What To Do In The Struggling Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in an "uptrend under pressure" amid sharp losses in recent sessions.
The current uptrend is coming under increasing pressure, which justifies holding a lower exposure level of 40% to 60%. Pay special attention to sell signals within your portfolio. Cut stocks that fall 7% to 8% from your entry and holdings that break below the 50-day or 10-week moving averages.
(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: American Express, Cisco, JPMorgan
Featured in this week's Stocks Near A Buy Zone column, American Express is building a giant cup-with-handle base that displays a 182.25 buy point. Shares are just 4% below their buy point, as they fell 0.6% Monday. Bullishly, the stock's relative strength line is nearing new highs, which is a particularly positive sign ahead of a potential breakout.
Banking giant JPMorgan is in buy range above its 138.76 flat-base buy point after Monday's 0.9% gain, according to IBD MarketSmith chart analysis. Shares are also rebounding from their key 50-day moving average.
JPM stock shows a solid 94 IBD Composite Rating out of a perfect 99, per IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Cisco Systems ended a five-day losing streak with a 0.5% rise Monday but remains below a flat base's 50.81 buy point. Shares are trying to halt their slide around their 50-day line and are about 4% below the entry.
Top Stocks To Buy And Watch: Palo Alto, Wingstop
IBD Leaderboard watchlist stock Palo Alto Networks is building the right side of a base that has a 193.01 buy point in the wake of last week's jump of more than 10%.
Backstory: Last week, the cybersecurity giant announced very good results for the January-ended quarter that saw earnings hit $1.05 a share, up 81% vs. a year earlier, on a 26% jump in revenue to $1.7 billion.
Wingstop is in the 5% chase zone past a 169.04 cup-with-handle entry that tops out at 177.49 amid Monday's 1.2% gain. Investors should wait for signs of support before considering a purchase of shares, especially amid the deteriorating general market conditions.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and abroad, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop's total footprint to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Buy Points
Deere shares climbed 1% Monday but still closed below their 50-day line. Shares are 6% under a 448.50 buy point in a flat base.
Backstory: An industrial bellwether, Deere has shrugged off recession and inflation fears to deliver solid profits. In the last year, higher commodity prices let farmers buy both new and upgraded machines.
In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% jump in earnings per share on a 32.2% total revenue surge, both topping estimates. Earnings growth accelerated for a second straight quarter.
Homebuilder Toll Brothers is building a cup-with-handle base that displays a 63.29 buy point. Bullishly, the stock boasts a relative strength line at new highs after Monday's 1.45% rise. TOL stock shows a solid 95 IBD Composite Rating.
Backstory: Last week, luxury homebuilder Toll Brothers topped earnings and revenue projections while maintaining its full-year guidance. The homebuilder's financial report comes as a 12-month slide in U.S. existing-home prices showed signs of slowing in January.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 5.5% Monday after the company announced Gigafactory Berlin is now producing 4,000 Model Y vehicles per week. The global EV giant generally considers 5,000 units per week to be the goal for its factories. At its current pace, the Berlin plant is on pace for 208,000 vehicles per year.
Despite their strong rebound since Jan. 6, shares are still below the 200-day line. That key level looms as a potential resistance area. Shares closed Monday around 47% off their 52-week high.
Tesla will hold its investor day Wednesday, with Musk teasing plans to present his "Master Plan 3" at the event. Analysts say they know few details, and many doubt there will be any new product announcements. Musk says his Master Plan 3 is about a "path to a fully sustainable energy future for Earth."
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.8% Monday, bouncing back above support around their 200-day line. Shares are around 18% off their 52-week high.
Microsoft shares remain below their 200-day line despite Monday's 0.4% gain. The stock is more than 20% off its 52-week high after recent losses.
