S&P 500 stocks Exxon Mobil, Delta Air Lines and Qualcomm along with Dow Jones stock Boeing and Autoliv are in focus this week.
With the market rally attempting to gain momentum, these stocks have earnings out of the way and give investors exposure options across different industries — including energy, semiconductors and airlines.
The Dow Jones isn't far from its August and December highs, but has lagged in 2023 easing late in the week. The S&P 500 also declined on Friday.
Overall, industries are mixed with health insurers, oil and gas plays, pharmaceuticals and heavy equipment manufacturers all struggling. However, the tech and growth sectors are performing well in the current market, along with the broad housing, travel and auto sectors.
With the stock market rally already underway for several weeks, the January jobs report surprised many Friday. Nonfarm payrolls increased 517,000 in January, well above the Econoday consensus of 185,000. This comes amid recent layoffs and cost-saving measures being implemented across many sectors.
Earnings will still weigh heavy on the market next week. However, investors should keep an eye on these five stocks, with exposure to S&P 500 stocks and Dow Jones stocks, and the diverse industries they are part of.
S&P 500 Stocks: Exxon Mobil
XOM stock edged up 0.7% to 111.92 on Friday. However, on the week, S&P 500 stock Exxon Mobil dropped 3.2%.
Exxon Mobil stock has formed a flat base and has been trading around the 114.76 buy point. Shares have been tracking with the S&P 500 since late December. XOM shares have found support at the 50-day line and have held up better than many other energy names in recent days, as crude oil, gasoline and natural gas prices tumbled.
In 2022, as the U.S. economy began recovering from the Covid pandemic, Russia invaded Ukraine in February, sending oil, gasoline and natural gas prices soaring for much of the year
S&P 500 stock Exxon Mobil posted mixed fourth-quarter financial results on Tuesday, beating earnings estimates but missing on revenue views. However, fueled by a "favorable market," the company did report it largest-ever profits in 2022 and its highest annual revenue since 2013.
In Q4, Exxon Mobil reported a 66% EPS jump while revenue rose 12% to $95.43 billion. In 2022, Exxon Mobil earnings skyrocketed 160% to $14.06 per share. Sales edged up 45% to $413.68 billion.
S&P 500 stock Exxon Mobil ranks fifth in the Oil & Gas-Integrated industry group. XOM shares have an 85 Composite Rating. The stock also has an 85 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement. The EPS rating is 77.
S&P 500 Stocks: Delta Air Lines
DAL shares rose 2.2% for the week. But Delta Air Lines stock dipped 0.8% to 39.58 on Friday, just below its 39.72 buy point.
DAL shares have formed a cup-with-handle base going back to last April. The handle also is modestly above a bottoming base within that much-larger consolidation. Delta Air Lines stock has a Composite Rating of 98. Its Relative Strength Rating is 80 and its EPS Rating is 82.
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S&P 500 stock Delta Air Lines reported fourth-quarter earnings on Jan. 13, after raising its Q4 guidance and giving a bullish 2023 outlook in mid-December, on the back of robust travel demand.
Earnings jumped 570% to $1.48 per share, above both analyst consensus and company guidance. Operating revenue came in at $13.44 billion, up 17%. Adjusted revenue came in at $12.292 billion, a 30% jump over the prior year.
CEO Ed Bastian projected Delta Air revenue would rise 15%-20% in 2023. Improvements in unit costs support a full-year outlook for earnings of $5 to $6 per share, "keeping us on track to achieve more than $7 of earnings per share in 2024," Bastian said.
In 2023, S&P 500 stock Delta also expects to generate more than $2 billion of free cash flow, as it looks to further pay down debt. But CFO Dan Janki tempered expectations for the start of 2023.
Dow Jones Stock: Boeing
BA shares fell 1.6% to 206.01 Friday during market trading, closing below the 21-day line for the first time since Oct. 26. For the week, Boeing stock retreated 2.4%, reversing lower from an 11-month high. BA shares are hovering right around a 216.74 buy point in a monthslong consolidation. A larger pullback to the rising 10-week line might offer a stronger case for BA stock.
Boeing stock has extended from its November 2022 breakout past 173.95, following a strong rally off late September lows.
Airplane maker Boeing surprised investors with a large fourth quarter loss on Jan. 25, as rising costs weighed down recovering jet deliveries.
Boeing reported a core loss per share of $1.75 even as revenue jumped 35% to $19.98 billion. Wall Street had expected earnings of 30 cents per share and $20.18 billion in revenue.
The commercial airplanes unit reported a negative operating margin of 6.8%, reflecting "abnormal costs and period expenses, including research and development." Still, Boeing delivered 480 airplanes in 2022 and won 774 net new orders, compared to 340 deliveries and 479 new orders in 2021.
However, Boeing remained bullish on 2023.
Dow Jones stock Boeing has a Composite Rating of 66. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement. The EPS rating is 25.
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S&P 500 Stocks: Qualcomm
QCOM stock dipped 0.6% on Friday, but rebounded from its 200-day line intraday. Shares rose 1.2% to 135.02 on the week. Qualcomm stock has found support at its 200-day line after mixed Q1 2023 earnings and lackluster-at-best guidance.
Investors could keep an eye on Qualcomm stock to see if it forms a handle in a base going back to late July.
Late Thursday the S&P 500 stock topped fiscal first-quarter earnings estimates, reporting EPS falling 26% to $2.37. The company missed on revenue views, with sales falling 12% to $9.46 billion.
Revenue at the CDMA Technologies unit, which includes smartphone chips, automotive chips and Internet of Things (IoT) devices, fell 11% to $7.89 billion.
The company's fiscal Q2 guidance was generally below consensus, though not by as much as many other chip plays in recent days.
S&P 500 stock Qualcomm ranks 14th in the Semiconductor industry group. QCOM shares have a 67 Composite Rating. The stock has a 57 Relative Strength Rating. The EPS rating is 85.
Autoliv Stock
ALV shares slipped 1.8% to 90.27 Friday. On the week, the stock reversed 2.7%. Autoliv stock is attempting to hold an earnings gap-up. The stock's 89.98 bottoming base buy point is also still technically valid.
Autoliv stock's gap-up is acting like a shelf to that bottoming base. However, that gap-up also is now a handle on a deep cup base going back to late 2021, with a 93.88 buy point.
Sweden-based Autoliv is an automotive safety devices supplier with sales to many leading auto manufacturers worldwide. On Jan. 27, Autoliv topped Q4 earnings estimates but missed on revenue. EPS grew 41% to $1.83 per share while sales increased 10% to $2.33 billion. ALV shares surged more than 9% Jan. 27 on the company's earnings news.
Analysts forecast 2023 earnings growing 48% to $6.51 per share and revenue advancing 12% to $9.9 billion, according to FactSet.
Autoliv stock ranks eighth in the Auto/Truck-Original Equipment industry group, with several other auto parts makers showing strong action. ALV stock has an 86 Composite Rating. It has a 75 Relative Strength Rating. The EPS rating is 75.
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