The Dow today led the major indexes in the stock market, thanks to big earnings-driven gains by three key component stocks.
XAll three indexes closed with a gain despite turning negative during the session. The Dow Jones Industrial Average rose 0.7%, the S&P 500 gained 0.2% and the Nasdaq added 0.1%. Small caps underperformed as the Russell 2000 fell 0.3%.
Volume was lower on both the NYSE and Nasdaq vs. Tuesday, according to preliminary figures. The Dow staged a solid rebound off its 50-day moving average, a level that the S&P 500 and Nasdaq have climbed above in the current stock market.
IBM (IBM) led the Dow today by gapping up and surging 8.5% to a three-month high in heavy turnover. The computer services giant announced a Q4 upside surprise on both the top and bottom lines Tuesday after the close. IBM forecasts adjusted earnings of $13.90 for the full year, above Wall Street forecasts for $13.84. Shares are 20% off their 52-week high.
United Technologies (UTX) soared more than 5% to retake its 50-day moving average as it continues to rebound from a late December bottom. The industrial conglomerate reported Q4 earnings and sales that topped views, thanks to strength in its aerospace business. United Tech shares are 18% below their September peak.
P&G Nears Buy Point In Dow Today
Procter & Gamble (PG) leapt nearly 5% as it gapped up past its 50-day average. The consumer products giant's fiscal Q2 earnings and sales came in above forecasts. It forecast slightly higher fiscal 2019 organic sales growth. The Dow component, trading near all-time highs, is about 2% away from a potential 96.99 buy point.
Automakers, gaming software and energy were among the biggest industry losers in the stock market today. Gainers included financial, travel booking and medical stocks.
Tesla (TSLA) sank nearly 4% in fast trade to extend its slide for a third straight session. RBC Capital Markets downgraded the electric-car maker to underperform from sector perform and cut its price target to 190 from 245. Shares gapped down and crashed 13% on Friday, after Tesla announced it will slash 7% of its workforce.
Twitter (TWTR) led the downside in the IBD 50 with a 4% drop, sending the stock below its 50-day line. Shares fell after CEO Jack Dorsey's interviews with Rolling Stone and the Bill Simmons Podcast, in which he discussed harassment, Nazis and other topics, were published online, according to CNBC.
IBD 50 software stocks on the rise included cybersecurity plays Palo Alto Networks (PANW), Fortinet (FTNT) and CyberArk Software (CYBR), which gained more than 1% each.
YOU MIGHT ALSO LIKE:
After Hours: These 3 Stocks Are Notable Earnings Movers
IBD 50 Stocks To Watch: Euronet Nears Buy Point Of First-Stage Base
IBD Stock Of The Day Could Turn Profitable — And Is Eyeing A Breakout
