The Dow Jones Industrial Average ended the day at the top as stocks appreciated. tesla (TSLA) CEO Elon Musk mocked a lawyer on Twitter as the stock skyrocketed amid record profits. Stock banner Combined Rental (URI) made a huge profit. Microsoft (MSFT) was the best blue chip but Bed Bath and Beyond (BBBY) collapsed.
Meanwhile, three important names were among the stocks that passed through the buying points. Plains GP (PAGP), ArcelorMittal (MT) and PulteGroup (HSH) all tested inputs.
Stocks rose on the latest GDP data. The Commerce Department reported that Q4 GDP slowed to 2.9% year-on-year, higher than expected 2.7% growth. 3.2% growth. The PCE price deflator came in significantly below consensus views, up 2.1% versus 2.1%. consensus estimate 2.6% increase.
Nasdaq Shines, Small Caps Delay
The Nasdaq was the strongest of the major indices, up 1.8%. china stock pinduoduo (PDD) jumped 8.5% to perfection.
The S&P 500 rose 1.1%. Seagate Technology (STX) was strong and flying 10.9% in earnings.
S&P 500 almost all sectors were positive. Energy and consumer preference were the top performers, with the only consumer staples losing.
Small margins are behind, but Russell 2000 still posted a 0.7% gain.
Growth stocks also jumped with the Innovator IBD 50 ETF (fifty) ends up 1.4%.
Dow Jones Today: Microsoft Shines
Dow Jones Industrial Average reverses higher, rising 206 points, or 0.6%
sales team (CRM) was the Dow Jones top performer, up 5.7% today.
Microsoft stock also had a good session, gaining 3.1%. This allowed it to regain the 50-day moving average, MarketSmith analysis shows.
IBM (IBM) had the hardest time, down 4.5%. Merck (MRK) fell 1.6%.
Tesla Stock Rises; Elon Musk Mocking His Lawyer
Tesla skyrocketed Thursday afternoon after the firm posted record profits late Wednesday. It closed the day with an 11% rise.
The stock has gaped at its 50-day moving average, which is a very aggressive buying point considering it remains below the 200-day line.
TSLA stock rose after earnings increased 40% to $1.19 per share and revenue increased 37% to $24.32 billion. While sales did not meet some forecasts, earnings exceeded forecasts.
Analysts were mixed about the results, but investors reacted positively to Musk’s statement during the earnings call that the company saw its “strongest orders for the year” in its history. It expects to deliver around 1.8 million vehicles this year.
The firm’s positive results apparently put the firm’s flamboyant CEO in a good mood, as he made a joke at the expense of a legitimate rival.
“I changed my name to Mr Tweet now Twitter won’t let me change it back” Musk tweeted.
He made the blunder, citing Nicholas Porritt, the attorney representing the shareholders who sued him for his 2018 tweets about keeping Tesla private. He mistakenly called Musk “Mr. Tweet” during Monday’s hearing.
BBBY Stock Drops on Debt Worries
Shares of Bed Bath & Beyond tumbled after the company was warned it didn’t have enough cash to pay off its debts.
Trading was briefly halted after the firm said it was in default on its line of credit. JPMorgan Tracking (JPM).
The Firm said in a new securities filing that it “doesn’t have sufficient resources to repay the amounts covered by the Loan Facility and this will prompt the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Act.”
The company owes $550 million under an asset-backed loan to JPMorgan and another $375 million to the Sixth Street lender. It also has approximately $1.2 billion in debt in unsecured securities.
In the filing, the firm warned that it “concludes that there are substantial doubts about the company’s ability to continue as a continuous business for the next 12 months.”
BBBY has been infamous as a meme stock alongside AMC Entertainment (AMC) and Stop Game (GME) closed the session down 22.2%.
Leaderboard Flexes Muscles With Stock Gains
Another stock that rose in earnings was Leaderboard name United Rentals, which rose in quarterly results.
The URI built on early gains as it moved further out of the buy zone, up 10.1%. History and 368.04 points of purchase extended.
The stock rose after the company announced earnings and started a quarterly dividend of $1.48 per share. It also announced plans to buy back $1 billion in stock this year.
Quarterly earnings rose 32% to $9.74 per share. Revenue increased 19% to $3.3 billion.
United Rentals also raised its revenue forecast for 2023. The URI currently sees revenue at $13.7 billion to $14.2 billion, with the midpoint slightly above the consensus of $13.46 billion.
Chevron Pops in the Midst of Buyback; XOM Pass Input
Chevron stock opened with above-average volume. It closed the day up 4.9% but remained below the flat bottom entry of 189.78.
Stocks vaulted after Chevron announced its $75 billion share buyback. The firm also said it would increase its dividend payment by 9 cents to $1.51 per share. Chevron is set to release its latest earnings report Friday morning.
its great rival Exxon Mobil (XOM) rose 4% and jumped into a buy zone above 114.76 flat bottom entries. But Exxon is a risky buy because the firm will announce earnings on Tuesday.
One approach highlighted by Investor’s Business Daily is Use options as a strategy to reduce risk associated with earnings. It’s a way to tap into the upside potential of a stock’s move around earnings while reducing downside risk.
Energy Stock Between Bursts
The energy transport game, Plains GP, came out of a trophy base with an entry of 13.51. But the volume was weak.
It operates in two segments, crude oil and natural gas liquids, with its subsidiary Plains All American Pipeline. Analysts expect annual EPS to increase 458% to $1.73 in fiscal 2022, and to $2.38 in 2023, up 38%.
stock shown today’s MarketDiem newsletter.
ArcelorMittal cleared the mug buying point of 31.82, tracked on its best weekly chart. The relative strength line looks strong.
Big Money has been stocking up on steel lately, as it comes in a Spool/Delivery Rating of A-.
Homebuilders have been going strong lately, testing the Pulte mug insert at 52.38. The RS line is at its peak.
However, earnings will be announced in the next five days, so it would be prudent to keep an eye on this stock rather than act now.
Please follow Michael Larkin on Twitter: @IBD_MLarkin for further analysis of growth stocks.
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