Dow Jones stock Apple (AAPL) helped push stocks higher on Wednesday before the market sold off on remarks from Fed Chairman Jerome Powell. Dow leader McDonald's (MCD) rose 1.9% on better-than-expected earnings.
XMeanwhile, strong earnings vaulted General Electric (GE) 10% higher. Companies that reported earnings after the close included Tesla (TSLA), Microsoft (MSFT) and Facebook (FB).
The major stock indexes forged ahead Wednesday but tapered off in late afternoon trading. The Federal Reserve held its benchmark interest rate steady on Wednesday and announced plans to slow Treasury purchases in Q2. After the Fed statement, the market's gains from earlier sold off, and indexes closed near session lows.
The Dow Jones Industrial Average and Nasdaq closed at roughly break-even. The S&P 500 fell nearly 0.1%. Volume was mixed vs. the same time on Tuesday, trading higher on the Nasdaq and lower on the NYSE, according to early data.
The Nasdaq and S&P 500 touched new all-time highs last week as the current market uptrend continues. Though the major indexes lost a portion of 2020's gains on Friday and Monday due to coronavirus fears, stocks snapped back on Tuesday and limited losses Wednesday.
As for exchange traded funds, the Innovator IBD 50 (FFTY) rose more than 0.2% Wednesday. The leading growth-stock ETF found support at its 50-day line and remains just below a 5% buy zone with 36.18 cup-with-handle entry.
Join IBD experts as they analyze winning stocks on IBD Live every morning. Take a free trial!
Dow Jones Leaders Pop On Earnings: Apple Stock, McDonald's Stock
Apple stock rose 2% after beating fiscal first-quarter earnings and sales estimates, once again becoming the most valuable company in the U.S. with a market value near $1.5 trillion. The company also offered strong Q2 sales guidance. Shares of Apple stock are now extended 47% above a 221.47 entry in a flat base, according to MarketSmith chart analysis.
Elsewhere in the Dow Jones, McDonald's reported quarterly earnings of $1.97 per share, beating analysts expectations by one cent. The fast-food chain reported revenue of $5.349 billion for the quarter, beating the $5.3 billion estimate. McDonald's stock rose nearly 1.9%, breaking out past a 214.28 buy point off a cup-with-handle base.
Stocks Ahead Of Earnings: Microsoft, Tesla, Facebook
Dow Jones giant Microsoft reported earnings of $1.51 a share on revenue of $36.9 billion, handily beating analysts expectations of $1.32 a share on revenue of $35.69 billion. That's an earnings increase of 37% year over year. At the close on Wednesday, Microsoft stock was about 18% above a 142.47 buy point in a flat base. Shares of Microsoft rose in extended trading.
IBD Leaderboard stock Tesla reported quarterly earnings after the close. Revenue of $7.38 billion beat analysts estimates of $6.99 billion. Non-GAAP EPS of $2.14 beat estimates of $1.77 a share. Results sent the stock rallying in after-hours trading. Shares of Tesla are up more than 40% over the last three months. The stock has been on a tear since breaking out on positive earnings last October.
Facebook reported better-than-expected fourth-quarter earnings Wednesday after the market closed. But shares of Facebook stock still sold off in after-hours trading. Analysts expected the company to announce EPS of $2.51 on sales of $20.89 billion. The company reported EPS of $2.56 on sales of $21 billion. Facebook stock sold off after hours but closed on Wednesday extended past a 190.19 buy point in a cup-with-handle base.
IBD 50 Stocks Breaking Out: Spirit Realty
IBD 50 stock Spirit Realty Capital (SRC) broke out of a cup-base with a 53.33 buy point. Shares of Spirit Realty Capital traded inside the 5% buy zone briefly before falling back below the buy point. The stock was featured as Tuesday's IBD 50 Stock To Watch. Spirit Realty stock ranks No. 34 in the IBD 50 and maintains a solid 92 Composite Rating.
Scotts Miracle-Gro (SMG) broke out past a 114.73 cup-base buy point on strong earnings Wednesday. The stock is inside its 5% buy zone after rising nearly 6%. SMG announced quarterly EPS growth of 19% year over year and quarterly revenue growth of 15%, year over year. The company reported a loss of $1.12 a shares on revenue of $342.4 million for the quarter.
The stock's RS line vaulted higher alongside the stock — a bullish sign.
YOU MAY ALSO LIKE:
After Hours: Tesla Surges; These 3 Stocks Flash Buy Signals
Stocks Hit New Highs But This Hedging Strategy Means You Don't Have To Sell — Yet
If This Red Hot Bull Market Really Starts Breaking, Do This
Get Fresh Stock Ideas From The Pros At IBD — Watch The IBD Live stream Daily
