The Dow Jones Industrial Average rose as the stock market rallied. Mark Zuckerberg was bullish on staffing as Facebook parent Meta Platforms surged on results. Apple jumped before posting an earnings beat.
A trio of stocks are worth noting with the market in the grip of a correction: Merck, BJ's Wholesale Club and International Money Express.
The stock market looked to be shrugging off the fact that U.S. GDP fell 1.4% on a quarter-to-quarter annualized rate for the first time since the Q1-Q2 2020 pandemic slowdown. Analysts noted a big drop in U.S. exports and a slowdown in companies refilling inventories offset decent increases in consumer spending and fixed investments.
Volume was mixed compared to the same time Wednesday. It rose on the Nasdaq but fell on the New York Stock Exchange.
Meanwhile, the yield on the benchmark 10-year Treasury note rose 4 basis points to 2.86%. Oil also moved higher, with West Texas Intermediate crude up nearly 3% to almost $105 per barrel.
Nasdaq Powers Up As Tech Stocks Impress
The Nasdaq was surging as tech stocks powered higher. It rose nearly 3%. PayPal was among the best performers following its earnings report, gaining almost 11%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33878.34 | +576.41 | +1.73 |
| S & P 500 | (0S&P5) | 4282.08 | +98.12 | +2.35 |
| Nasdaq | (0NDQC ) | 12838.20 | +349.27 | +2.80 |
| Russell 2000 | 190.01 | +3.05 | +1.63 | |
| IBD 50 | 33.28 | +0.23 | +0.70 | |
Last Update: 1:50 PM ET 4/28/2022 |
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The S&P 500 was also rallying, gaining more than 2%. Computer software and services company PTC was among the best performers here, rising nearly 17%.
The S&P sectors were all green. Communication services and technology were making the best gains while utilities and industrials rose the least.
Small caps were also in comeback mode. At around 1:45 pm PT, the Russell 2000 rose 1.6%.
Growth stocks were lagging. The Innovator IBD 50 ETF, a bellwether for growth stocks, rose a relatively meager 0.7%.
Dow Jones Up; Apple Earnings Beat
The Dow Jones Industrial Average powered almost 600 points higher as it gained nearly 2%.
Apple stock was surging ahead of its latest report, which was due after the close. The stock popped more than 4% but remains below its 50-day moving average.
Analysts expected Apple earnings to come in at $1.42 per share on sales of $94 billion. After the close the firm posted EPS of $1.52 on sales of $97.28 billion, propelling AAPL stock higher.
In a note to clients Wednesday, Goldman Sachs said it was cautious heading into the report. It said "lockdowns in China, a slowing App Store and the potential for slowing consumer demand increase risk for Apple's guidance and commentary around FQ3 to June."
Merck was actually the best performer on the Dow Jones today, rising nearly 6%. Salesforce also did well, popping more than 5%.
Mark Zuckerberg Sees Silver Lining As Facebook Stock Surges
Facebook stock was powering higher following the firm's latest quarterly report. It was up nearly 18% and the key 50-day moving average now looks in reach.
During the firm's earnings call, CEO Mark Zuckerberg saw the bright side after an analyst questioned how the firm was handling employee retention.
It comes amid reports some employees are looking to change jobs as the value of their stock options has plunged due to recent performance.
"I don't think that this sort of volatility that companies face is always that unhealthy for making sure that you have the right people at companies," Zuckerberg said.
He also stressed that the firm was recruiting a lot as it prioritizes the metaverse.
CFO Dave Wehner admitted that turnover had increased, but said it is still "broadly consistent" with pre-pandemic levels.
Meta Platforms reported better-than-expected first-quarter earnings results late Wednesday, but fell short on revenue. Jefferies analyst Brent Thill said the firm would have beaten revenue estimates were it not for macroeconomic conditions and the Russia-Ukraine conflict.
The stock was particularly buoyed by the fact daily active users climbed 4% to 1.96 billion. Monthly active users climbed 3% to 2.94 billion.
Outside Dow Jones: These 3 Stocks Eye Buy Points
Pharma giant Merck is surging towards a cup-with-handle base, according to MarketSmith analysis. It is shooting for an 89.58 buy point.
The stock's relative strength line has been bullishly pushing higher even in the midst of a stock market correction.
Earnings performance is very strong, which is reflected in its EPS Rating of 90. Earnings per share surged 84% to $2.14 in the most recent quarter. Big Money has also been snapping up shares of late, another good sign.
BJ's Wholesale Club has formed its own cup with handle, with the entry here 71.10. The RS line has just hit a new high, which is a good sign ahead of a potential breakout.
Overall performance is strong, which is reflected in its excellent IBD Composite Rating of 94 out of 99. Volume has been below average of late, which is not ideal. But if it spikes on the upside it would give a breakout extra credibility. Big box discount players like BJ's could benefit in an outsize way as inflation continues to spike.
Futures Tumble On Apple, Amazon After Stocks Surge
A Small-Cap Financial Services Play
International Money Express has been showing impressive resilience amid the correction, and has now formed a flat base. The ideal entry is 22.08.
The RS line has flattened following a recent spike. But this sideways action has allowed the stock to form its latest pattern. Institutional investors have been getting behind the stock, with its Accumulation/Distribution Rating coming in at A-. In total, 63% of its shares are held by funds, according to MarketSmith data.
The Florida company, which allows customers to send money from the U.S. and Canada to countries in Latin America, Africa and Asia, is set to report earnings May 4. This adds risk to any possible buys.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
