The stock market rallied on Wednesday after reacting to Netflix’s (NFLX) earnings report. Tesla earnings are due after the market close.
The Dow Jones Industrial Average rose 0.1% in morning action, while the S&P 500 added 0.5%. The Nasdaq composite climbed 0.9%, working on its fourth straight day of gains. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.9%, while the SPDR S&P 500 ETF (SPY) moved up 0.4%.
Netflix surged 13% after beating Wall Street’s targets for new subscribers and revenue in the fourth quarter. ASML stock jumped 7.5% early, while AT&T shares tumbled nearly 4%.
The S&P Global’s Purchasing Managers’ Index, commonly known as PMI, showed that the manufacturing index rose to 50.3 in January vs. 47.9 in December. The services index climbed to 52.9 in January vs. December’s 51.4 reading.
On Tuesday, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 moved up 0.3%. The Nasdaq composite climbed 0.4%.
DraftKings (DKNG), MercadoLibre (MELI), Novo Nordisk (NVO), Snowflake (SNOW) and Spotify (SPOT) — plus Dow Jones components American Express (AXP), Amgen (AMGN) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.
Credit card leader American Express bounced further out of buy range. Biotech leader Amgen edged lower Tuesday as drug maker Merck is trying to break out past a cup base’s 119.65 buy point.
IBD Leaderboard watch list stock DraftKings extended a win streak to six sessions Tuesday. MercadoLibre is moving out of buy range past a flat base’s 1,660 buy point, as shares climbed. Weight-loss drug maker Novo Nordisk ended Tuesday down 0.1%. Software leader Snowflake is breaking out past a 202.83 buy point in a flat base.
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher after Wednesday’s stock market open.
