The stock market showed modest losses early Tuesday after Friday's record-setting gains. The death toll from a new virus in China rose to six people and was confirmed to spread between people. The Dow Jones Industrial Average trimmed losses to about 30 points in today's stock market amid a sharp rise from Dow Jones stock Intel.
XDow Jones stock Intel (INTC) gained about 2% and was one of the top-performing stocks on the Dow Jones Industrial Average. The chip giant has earnings due Thursday.
It's a busy week for earnings reports, according to Tuesday's IBD Investing Action Plan. Netflix (NFLX) will report late Tuesday, while Texas Instruments (TXN) will report late Wednesday. Roku (ROKU) jumped after launching its service in Brazil, while stock market leader Tesla (TSLA) surged, as it looked to snap a three-day losing streak. (Check out the IBD Investing Action Plan for ongoing important stock market events and key earnings results.)
Dow Jones Slips From Highs In Current Stock Market Rally
The Nasdaq composite fell 0.1% in morning trade. The S&P 500 moved down 0.2%, while the Dow Jones industrials fell 0.15%. All three major indexes set fresh all-time highs Friday, as the current uptrend continues.
Year to date, the major stock indexes have already notched solid gains through Friday's close. The Nasdaq is up 4.6%, while the S&P 500 and Dow Jones Industrial Average rose 3.1% and 2.8%, respectively, in 2020.
Among exchange traded funds, the Innovator IBD 50 (FFTY) ETF was essentially unchanged Tuesday. The ETF of top growth stocks is above a 35.52 buy point after a recent breakout.
Dow Jones Stocks: Intel Leads
Among the Dow Jones stocks, Intel stock was the top-performing stock in morning trade with a nearly 2% gain. Shares of the chip giant are in the 5% buy zone from a cup with handle's 59.23 buy point.
Intel stock will report after the stock market close Thursday. Analysts expect the chip leader to earn $1.23 a share on revenue of $19.2 billion.
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Stock Market News: Morgan Stanley, Roku, Tesla
Morgan Stanley (MS) slid almost 3% after Citigroup downgraded the investment bank from buy to neutral, calling it "fairly valued." Morgan Stanley stock looked to snap an eight-day win streak amid last week's strong earnings results.
Roku — a top performer in 2019 — gained more than 4.5% after the company launched its streaming service in Brazil. According to CEO and founder Anthony Wood, "I'm delighted to bring Roku to Brazil, one of the biggest streaming markets in the world." Shares continue to shape a big cup with handle, showing a 168.95 buy point. But Roku stock is stuck below its 50-day moving average line, about 24% off its 52-week high.
Tesla stock accelerated 6% higher early Tuesday, on pace to snap a three-day losing streak. Tesla's price target was raised from 530 to 800 at New Street. Shares of the electric-auto maker are just 1% off their 52-week high. Tesla stock is one of the top stocks in 2020 and is on the IBD Leaderboard service.
Stock Market Earnings: Netflix On Tap
Before the stock market open, Chinese education stock New Oriental Education (EDU) and TAL Education (TAL) both sold off after reporting their quarterly earnings results. New Oriental fell 2.5%, while TAL stock dropped 5%.
FANG stock Netflix is battling with a 338.10 buy point in a cup with handle, according to MarketSmith chart analysis. A key flaw is the stock's lagging relative strength line. Analysts expect the video streaming platform to earn 51 cents a share on revenues of $5.44 billion when it reports after the close Tuesday.
Texas Instruments is in the 5% buy area above a 129.27 buy point in a cup with handle. The chip stock is expected to earn $1.05 per share on sales of $3.21 billion after the stock market close Wednesday.
According to IBD Stock Checkup, Texas Instruments stock has an 86 out of a best-possible 99 Composite Rating. Investors can use the IBD Composite Rating to easily measure a stock's fundamental and technical metrics.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.
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