Dow Jones Futures Rise On Solid Earnings; What To Do After Market Breaks Lower


Dow Jones futures rose modestly early Wednesday, along with S&P 500 futures and Nasdaq futures, with crude oil prices and bond yields continuing to climb. The stock market suffered sharp losses once again on Tuesday, as the 10-year Treasury yield jumped to a fresh two-year high.




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The Nasdaq, Russell 2000 and Dow Jones broke below recent lows, while the S&P 500 suffered sharp losses in a broad market sell-off.

Apple stock, Qualcomm (QCOM), CF Industries (CF), Builders FirstSource (BLDR) and Advance Auto Parts (AAP) are five stocks trying to find support at their 50-day or 10-week line. Apple (AAPL) retreated back to its 10-week line, while QCOM stock and Builders FirstSource found support at their 50-day lines. CF Industries and, to a lesser extent, AAP stock bounced off those key levels.

None of these stocks is actionable, given the current market environment, though CF stock is flashing some positive signals. But all are worth watching closely. The relative strength lines are strong for all five names.

Key Earnings

J.B. Hunt Transportation Services (JBHT) reported earnings after the close. The trucking firm comfortably beat views, with EPS up 58% and revenue up 28%. JBHT stock edged higher early Wednesday. Shares dipped Tuesday but have found support at their 50-day line in recent sessions, unlike many other trucking stocks. The RS line for J.B. Hunt is at new highs.

UnitedHealth Group (UNH) topped fourth-quarter views early Wednesday. Shares of the Dow Jones health insurer edged lower in premarket action. UNH stock was a strong performer in late 2021, but has retreated this year, falling below its 50-day line.

ASML (ASML) reported better-than-expected Q4 earnings but revenue was light. The Dutch chip-equipment giant sees 2022 revenue of 20%, saying demand is well above capacity. ASML stock rose modestly before the open. Shares have fallen below their 50-day and 200-day lines, following a long, powerful run.

Bank of America (BAC) earnings topped views, but revenue came up short. Shares climbed modestly before the open. Money center banks have struggled during earnings season.

Morgan Stanley (MS) topped Q4 EPS forecasts, though revenue was just below views. Shares of the investment bank rose modestly after tumbling Tuesday following disappointing results from Goldman Sachs (GS).

Procter & Gamble (PG) narrowly topped Q4 views, with the Dow consumer products giant also raising 2022 sales targets. P&G stock edged higher.

JBHT stock and BLDR stock are on the IBD 50. ASML stock is on IBD Long-Term Leaders.

The video embedded in this article analyzes the market action as well as Apple stock, Builders FirstSource and CF Industries.

Dow Jones Futures Today

Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures advanced 0.3% and Nasdaq 100 futures climbed 0.3%.

In overnight trading, the 10-year Treasury yield rose to 1.88%. U.S. crude oil prices rallied above $86 a barrel as an explosion took an Iraq-Turkey pipeline offline.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


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