The Dow Jones Industrial Average rose 0.9% at 1:30 p.m. ET Tuesday, with Microsoft surging on news that it will launch an AI subscription for Microsoft 365.
The S&P 500 rose 0.5% at the hour, while the Nasdaq reversed earlier losses and gained 0.5% as well. The energy and tech sectors were top gainers at the hour, while real estate and utilities lagged.
Retail sales rose 0.2% in June, down from May's 0.5% increase. The National Association of Home Builders/Wells Fargo Housing Market Index rose to 56, gaining for the seventh straight month in July.
Volume on the NYSE and Nasdaq was higher vs. the same time on Monday.
The small-cap Russell 2000 rose 1%, while Innovator IBD 50 ETF gained 0.8%.
Crude oil rose more than 1% to $75.32 a barrel.
The yield on the benchmark 10-year Treasury note fell 1 basis points to 3.78%.
Dow Jones Stocks
Dow Jones Industrials component Microsoft surged 5% in strong volume on news of its AI subscription plans. Generative AI tools will be available for Word, Excel and Teams.
Also on the Dow Jones, Goldman Sachs leapt off its 50-day line. Earnings are due Wednesday. On Tuesday, Apple pulled back in light volume.
Stocks Rally On Microsoft AI Push; Here Comes Tesla
Stocks Moving Today
United Airlines and IBD Leaderboard stock ASML report on Wednesday. UAL, which pulled back after breaking out on June 27, is approaching the buy point of 54.05. ASML is hovering near a buy point of 747.13, according to IBD MarketSmith.
Tesla reversed earlier losses to gain ahead of earnings Wednesday. Cathie Wood's ARK Invest sold 45,000 shares of Tesla on Monday ahead of the EV company's earnings. Tesla is on the IBD Leaderboard.
Analysts at Zacks estimate earnings of 83 cents per share on sales of $24.9 billion for the second quarter. That represents 9% earnings growth vs. last year, with sales growth of 47%. S&P Capital IQ has views of 82 cents for earnings per share and $24.7 billion for sales.
Netflix, also due Wednesday, rose in the stock market today but shares are extended.
Charles Schwab, Morgan Stanley and Bank of America were earnings movers. MS stock surged in strong volume after earnings and sales beat, while shares of BAC stock also rose after results. Schwab gapped up and approached its 200-day moving average after second-quarter results. A hike in asset management fees offset a fall in interest revenue.
Lockheed Martin reversed after early gains despite a strong outlook for the year. Shares are testing the 50-day line in early afternoon trading.
Dow Jones component Caterpillar is in a buy zone. Caterpillar reports in early August and has gained 9% so far this year.
On Holding, an IBD Leaderboard stock, is also in a buy zone, while Monolithic Power Systems, on IBD SwingTrader, was holding just above it on Tuesday. ONON stock has doubled, while MPWR boasts a 60% gain so far this year.
Chipotle Mexican Grill, on the Leaderboard Watchlist, rose and is regaining a buy point of 2139.88 at the hour.
Warren Buffett stock American Express is near a buy point of 177.04 in a cup with handle ahead of earnings on Friday.
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