The Dow Jones Industrial Average opened higher on Tuesday while the S&P 500 led the upside with strong gains. Crude oil cooled and neared $100 a barrel again as investors await earnings from major firms like Netflix after the close. Meanwhile, Lockheed Martin and Dow giant Johnson & Johnson reported early Tuesday.
Dow Jones Higher
In early trading, the Dow Jones rose 1.1%. The S&P 500 also rose early and was up 1.2% while the Nasdaq advanced 1%. Small caps moved higher as well with the Russel 2000 up 2%.
According to IBD data, volume was running higher on the Nasdaq and lower on the NYSE vs. the close on Monday.
Consumer discretionary stocks led the upside among the S&P 500 sectors, while energy stocks lagged. Still, all the major sectors traded higher early Tuesday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31409.30 | +336.69 | +1.08 |
| S&P 500 | (0S&P5) | 3876.81 | +45.96 | +1.20 |
| Nasdaq | (0NDQC ) | 11475.14 | +115.09 | +1.01 |
| Russell 2000 | 175.97 | +3.37 | +1.95 | |
| IBD 50 | 26.99 | +0.14 | +0.52 | |
Last Update: 10:12 AM ET 7/19/2022 |
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Netflix Earnings Due After Close
Investors await more earnings reports after the close on Tuesday. Netflix, the world's largest streaming service, is among major firms expected to report.
The streaming services company reported its first quarterly loss in subscribers in more than a decade in 2022 and is warning investors it expects a loss of 2 million global subscribers in Q2. This would be the single largest quarterly loss in the company's history. As for EPS and sales, analysts are expecting a bottom-line of $2.99 a share and revenue of $8.05 billion.
The stock just recently reclaimed support at its 50-day line. After the last earnings report, shares of Netflix plummeted over 35% on April 20.
Dow Jones stock Johnson & Johnson reported earnings before the market opened. Shares rose 0.9% after the firm reported quarterly results that beat analysts' expectations, thanks to strength at its pharmaceuticals unit. The Dow Jones giant, however, cut its full-year adjusted profit forecast due to a stronger dollar.
Johnson & Johnson earned $2.59 per share, beating estimates of $2.54 per share. Meanwhile, the firm lowered guidance for the year to an adjusted profit of $10 to $10.10 per share, compared with its prior forecast of $10.15 to $10.35.
Lockheed Martin also was among major firms reporting before the market opened and things didn't look good. Shares fell over 1% after the firm announced it missed both earnings and sales estimates for its second quarter, while slashing guidance. The defense contractor reported earnings of $1.16 per share vs. views for $1.88. Revenue fell 9% to $15.4 billion.
Stocks To Watch: These Companies Breaking Out
Shares of computer networking firm Digi International broke out from a cup base with a 26.13 buy point early Tuesday. The breakout occurred in lighter volume but the stock's relative strength line hit a new high on the weekly chart. According to IBD Ratings, this stock looks strong with a 94 EPS Rating, a 97 Composite and a 97 RS Rating. Digi is a leading provider of IoT products and solutions to a variety of industries from retail to banking, from medical to transportation and more.
Elsewhere, shares of Apellis Pharmaceuticals broke out above a 50.71 cup-with-handle entry. Shares gapped up more than 25% and moved above the buy point. The stock is now extended from the 5% buy zone as well, so investors should not chase this one now. The breakout occurred in very strong volume. Biotechs have outperformed in recent weeks, and the biotech/biomed industry group now ranks a strong No. 9 out of IBD's 197 groups.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
