Stock Market Up 1% As Earnings Pour In; These 2 Stocks Top Buy Points

Stocks rose broadly Tuesday morning as the S&P 500 climbed back above an important chart level and more key earnings came out.

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The Dow Jones Industrial Average jumped 1.1% after two of its components reported earnings this morning.

Johnson & Johnson (JNJ) hit a new high after the drugmaker beat profit expectations but missed sales estimates. J&J also lowered its sales and earnings outlook for the year. And J&J suspended guidance for sales of its Covid-19 vaccine. The company said there’s a global surplus of the shots and the course of the pandemic is unclear.

Travelers (TRV) sold off nearly 5% in big volume despite that the insurance firm beat profit expectations. Adjusted earnings jumped 55% to $4.22 a share. Revenue rose 6% to $8.809 billion, also above views. Travelers’ shares fell below the 50-day moving average but appear to be finding support at that level.

S&P 500, Nasdaq Up 1%

The S&P 500 also rose 1.1% and climbed back above the 50-day moving average. The Nasdaq composite rose 1.3% as buying heated up in the first 45 minutes of trading.

Volume fell on the NYSE and Nasdaq compared with the same time on Monday.

The stock market remains on edge amid rising interest rates, inflation and a geopolitical crisis. But stocks today rose despite another rise in the 10-year Treasury note’s yield. It added 5 basis points to 2.91% and is approaching the 3% mark for the first time since December 2018.

The price of U.S. crude oil fell 2.5% to $105.50 a barrel. The energy sector opened as the weakest among S&P sectors. The Energy Select Sector SPDR (XLE) ETF fell 0.8%. Real estate and financial sectors performed best, up 0.8% and 0.4%, respectively, after the open.

Stock Market Big Movers

American Campus Communities (ACC) soared 13% to a new high after Blackstone (BX) agreed to buy the student-housing real estate investment trust. The deal is valued at about $12.8 billion, including debt, and comes as rents are rising and more college students return to campus. Blackstone shares were little changed.

Twitter (TWTR) fell 1.5% in heavy volume. The Wall Street Journal reported that Apollo Global Management is considering participating in a bid for Twitter, citing sources familiar with the plan. The bid would rival Elon Musk’s $43 billion bid for the social-media company.

Among other big movers, Plug Power (PLUG) jumped 7% after announcing an agreement to deliver up to 20 tons per day of liquid green hydrogen for lift trucks at Walmart distribution and fulfillment centers. The hydrogen and fuel cell energy systems provider is working its way back from a decline of more than 60% from November to January.

HireRight Holdings (HRT) rose above the 17.85 buy point of a deep cup-with-handle base in heavy volume. The provider of background checks is in a buy zone to 18.74. HireRight, which was in the IPO Leaders screen, reports earnings May 12.

Stock Market Watches Earnings Reports

Earnings reports are picking up in terms of numbers.

Halliburton (HAL) climbed nearly 2% to a 52-week high after the provider of oilfield services edged past profit and sales expectations for the first quarter.

Netflix (NFLX) and IBM (IBM) are announcing earnings after the close today. Netflix stock remains depressed, while IBM is trying to climb back above a downward-trending 50-day line.

The Innovator IBD 50 ETF (FFTY) rose 0.4%, as Extra Space Storage (EXR) broke out of a cup-with-handle base in heavy volume. Shares topped the 215.01 buy point and are in a buy zone to 225.76.

Lululemon (LULU) rose more than 3% after Truist Financial upgraded the athletic sportswear company to buy from hold. It also raised the price target to 495 from 390. Lululemon stock is rising above its 200-day moving average.

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