The Dow Jones Industrial Average rallied 200 points Wednesday, as earnings season kicked off with results from JPMorgan and Goldman Sachs. Tesla stock reversed sharply lower, while the Coinbase IPO is set to soar 40%.
Tesla (TSLA) rallied over 1% before reversing lower Wednesday.
Boeing and Microsoft are IBD Leaderboard stocks. Roblox and Square were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
The Dow Jones Industrial Average advanced 0.7%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite reversed 0.3% lower in midday trade.
Stock Market Rally: Dow, S&P Hit New Highs
Amid the current stock market rally, the Dow Jones Industrial Average hit record highs Wednesday, while the S&P 500 is just off its all-time highs.
Meanwhile, the tech-heavy Nasdaq sits just off its own all-time highs amid the index’s recent strength.
Tuesday’s Big Picture commented, “For the third consecutive session, indexes saved their best work for the final hours. Closes near session highs, especially after indexes open weak, are a hallmark of a positive stock market trend. With that, and a paucity of distribution days, the stock market is on a positive tack, at least in the short term.”
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Bitcoin gained about 1% Wednesday, hitting an all-time high at $64,829 before paring gains, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) reversed slightly lower Wednesday, on pace to snap a four-day win streak.
Dow Jones Earnings: Goldman, JPMorgan
Early Wednesday, Dow Jones investment banks Goldman Sachs and JPMorgan crushed Q1 estimates.
Goldman reported EPS of $18.60 on revenue of $17.7 billion. Shares jumped 3% in morning trade and are rebounding from their 50-day line.
JPMorgan earnings skyrocketed 477% to $4.50 a share. Revenue climbed to $33.12 billion. The stock slid about 1% in morning trade and is approaching its 50-day support level.
Also among Dow stocks, Boeing is back in buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39.
On Wednesday, shares gained 1%.
Stocks To Buy: Nvidia, Roblox
Graphics-chip maker Nvidia is breaking out above a 615 buy point in a new cup base. Shares are in buy range amid Tuesday’s 3.1% advance. Nvidia stock moved down about 1% early Wednesday, but is still above the buy point.
IBD Leaderboard stock Roblox is breaking out past an IPO base’s 79.20 buy point, according to IBD MarketSmith chart analysis. Shares closed Tuesday in the 5% buy zone that tops out at 83.16. The stock lost about 2% Wednesday morning.
According to Leaderboard commentary, “The stock’s relative strength line is in new high ground, which gives the breakout merit.”
Stocks To Watch: Square
Square slipped nearly 1% Wednesday, on pace to snap a 10-day win streak. Shares are approaching a 283.29 buy point in a cup base. Last week, Square stock broke out above a trendline entry around 242.
According to IBD Stock Checkup, Square stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Cryptocurrency exchange Coinbase Global was given a reference price late Tuesday of $250 a share for its direct listing on the Nasdaq in a highly anticipated IPO. The Coinbase IPO will start trading Wednesday under the ticker COIN.
According to MarketWatch, Coinbase is set to soar 40% above the 250 IPO price. The IPO is indicated to open around 350.
Coinbase is the largest U.S. cryptocurrency exchange. It lists about 50 cryptocurrencies for trading and is the first major crypto company to go public.
Tesla stock rallied over 1% Wednesday morning, before reversing lower. The EV giant was featured as Monday’s IBD Stock Of The Day.
Shares of Tesla regained their key 10-week moving average, a critical resistance level, for the first time since late February. Tesla is forming a new base, but it is too early for a new risk-optimal buy point.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
5 Stocks Enter Buy Zones In Latest Market Shift; Coinbase Jumps In Debut
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple declined 0.4% Wednesday, looking to give back a part of Tuesday’s 2.4% gain.
Apple stock is rebounding from its 40-week line and back above its 10-week line. On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Software giant Microsoft moved down 0.2% Wednesday. Microsoft is trading at the top of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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