Dow Jones futures and other major stock indexes threatened to end their rallies in morning action Tuesday, as Walt Disney (DIS) dived on a quarterly revenue miss. Meanwhile, artificial intelligence play Palantir Technologies (PLTR) plunged on first-quarter earnings results on the stock market today.
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Dow Jones futures gained 0.1% vs. fair value in morning action, as the S&P 500 futures inched higher. The tech-focused Nasdaq 100 futures lost 0.1% vs. fair value ahead of the opening bell.
Early Tuesday, the 10-year Treasury yield ticked lower to 4.47%. Further, oil prices fell as West Texas Intermediate futures traded around $78.30 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was down 0.1%, as the SPDR S&P 500 ETF (SPY) edged higher.
Stock Market Today: Disney, Palantir Earnings
Early Tuesday, entertainment behemoth Disney reported mixed fiscal second-quarter results. Disney topped earnings estimates as its streaming services nearly broke even, but the company missed sales targets. Shares plunged nearly 8% in early trade.
Meanwhile, Palantir reported reported in-line quarterly earnings and higher sales numbers than expected. But shares plunged more than 11% in premarket trade. Shares of the AI leader had surged 8.1% Monday to retake their 50-day moving average.
Other key earnings movers include Axon Enterprise (AXON), Datadog (DDOG), Lucid Motors (LCID), Microchip (MCHP) and Vertex Pharmaceuticals (VRTX).
Axon shares dropped 1.4%, while Datadog tumbled almost 11%. Lucid stock skidded more than 8%. Microchip shares sold off 1.5%. And Vertex stock climbed nearly 1% in premarket trade.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Dow Jones Rises
On Monday, the Dow Jones Industrial Average moved up 0.5% and the S&P 500 climbed 1%. The tech-heavy Nasdaq composite gained 1.2%.
Monday’s The Big Picture column commented, “Indeed, indexes had a few chances to mark a follow-through rally confirmation but came up short due to lower volume from the previous session. Still, we can’t get too down on the stock market, which is why IBD has been increasing its recommended stock market exposure.”
On Monday’s IBD Live show, the IBD Live team discussed last week’s strong action, with the Nasdaq reclaiming the 50-day line. Once again, the Nasdaq’s strong price gain came on slightly lower volume, but the panel explained why IBD raised market exposure.
Now is an important time to read Investor’s Business Daily’s The Big Picture column amid the ongoing stock market action. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Stock Market Today: Best Stocks To Watch
Chipotle Mexican Grill (CMG), NXP Semiconductor (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch on the stock market today.
Chipotle and Merck featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Duolingo (DUOL) broke out past a cup base’s 245.59 buy point.
Also, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express Below Buy Point
American Express is bouncing back in heavy volume from support around its 50-day moving average. The bullish rebound has placed the software leader in a new buy area, while shares are just above a 231.69 entry in a short consolidation. Shares were up 0.5% on the stock market today.
Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock ticked down 0.4% Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Chipotle gained 1.4% Monday, at the top of the buy range past a 3,023.98 buy point in a short consolidation, according to IBD MarketSurge. Chipotle shares lost nearly 1% ahead of the open on Tuesday.
NXP Semiconductors is in buy range past a double-bottom buy point at 251.96, and is making progress above that entry after Monday’s gains. Shares inched downward Tuesday.
Texas Roadhouse is now extended above its flat base’s 157.12 buy point, with a 2.5% rise Monday. Shares climbed 0.9% Tuesday morning.
Tradeweb is breaking out past a flat base’s 108.04 buy point. That places the stock in a new buy area. The stock edged higher Tuesday.
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) declined 1% and 1.8%, respectively, in Tuesday’s morning action.
Nvidia stock rallied further above the 50-day line Monday, continuing to build a base that has a 974 buy point. Meanwhile, an early buy trigger is in play at 888.19, which was the high on April 30. The AI giant is an IBD Leaderboard stock.
Tesla stock extended a win streak to three sessions Monday, finding support at its 50-day line following last week’s surge.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Tuesday’s stock market open.
Apple stock slipped 0.9% Monday, giving back a part of Friday’s gains. Shares are back above their 200-day line and forming the right side of a new base. The stock rose 1.2% Tuesday morning.
The Apple “Let Loose” event is expected to start at 10 a.m. ET. Two new iPad Pro models are expected, the 11-inch and the 12.9-inch models, according to Forbes. Meanwhile, company watchers expect a new design that changes the look of the tablets for the first time in more than three years.
Microsoft shares rallied 1.7% Monday, right at their 50-day line. The software giant is building a new flat base that has a 430.82 buy point and the 50-day line will be a key hurdle. And Microsoft stock fell 0.3% Tuesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
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