Warren Buffett’s shares fall due to loss of profits; Tesla Investor Day on Deck

Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average pared gains to 72 points on Monday. Warren Buffett Stock western oil (OXY) reported earnings after Monday’s close, while You’re here (TSLA) is set to hold its Investor Day on Wednesday, with CEO Elon Musk teasing a reveal of “Master Plan 3” details.


Warren Buffett Stock Reports Earnings

Occidental Petroleum missed its fourth-quarter profit targets late Monday, sending extended trading down 2%. The Warren Buffett-backed energy giant reported a 9% drop in fourth-quarter earnings to $1.61 a share, while revenue rose 4% to $8.22 billion. On the year, EPS jumped 267% to $9.35 while sales jumped 43% to $37.1 billion. Occidental also increased its dividend and announced a $3 billion share buyback plan.

Billionaire investor Buffett recently bought shares of Occidental Petroleum, with his Berkshire Hathaway (BRKA) adding more than 20 million OXY shares to its portfolio since July 2022. Berkshire Hathaway increased its stake in OXY to 21.4% of the company, according to FactSet.

Elsewhere on the earnings front, Working day (WDAY) fell more than 2% after the release of fourth quarter results, while Focus on video communications (ZM) jumped 6% in after-hours trading.

Other notable companies reporting earnings this week are C3.ai (AI), Wholesale Costco (COST), dollar tree (DLTR), Kohls (KSS), Lowe’s (WEAK), Macy’s (M), Ross Stores (ROST) and Selling power (CRM).

stock market today

On Monday, the Dow Jones Industrial Average rose 0.2% and the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite rose 0.6%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7% and the SPDR S&P 500 (SPY) climbed 0.3%.

Electric vehicle giant Tesla rose 5.5% on Monday. Among Dow Jones stocks, Apple (AAPL) increased by 0.8% and Microsoft (MSFT) climbed 0.4% in the current stock market.

IBD Ranking Watchlist Stock Palo Alto Networks (PANW), Deere (OF), Toll Brothers (To land wing stop (WING) – as well as Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase (JPM) – are among the top stocks to watch amid recent stock market weakness.

Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent Stock Of The Day IBD pick. American Express and Toll Brothers were featured in this week’s Stocks Near A Buy Zone column.

4 most important growth stocks to buy and watch in the currentrStock market rally

Dow Jones Futures Today: Oil Price, Treasury Yields

Before Tuesday’s opening bell, Dow Jones futures were up 0.15% relative to fair value, and S&P 500 futures were up 0.1%. Nasdaq 100 futures were up 0.2% from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year US Treasury yield fell on Monday, settling at 3.92%. Oil prices fell less than 1% on Monday, pausing after a two-session rally. West Texas Intermediate futures were trading just below $76 a barrel.

IBD’s latest newsletter, MarketDiem, delivers practical insights for stocks, options and crypto straight to your inbox.

What to do in the struggling stock market rally

Now is an important time to read IBD’s The Big Picture column with the stock market trending in a “pressurized uptrend” amid heavy losses in recent sessions.

The current uptrend is under increasing pressure, which justifies maintaining a lower exposure level of 40% to 60%. Pay close attention to sell signals within your portfolio. Reduce stocks that fall 7% to 8% from your entry and holdings that are below the 50-day or 10-week moving averages.

(Check out IBD stock listings like the IBD 50 and stocks near a buy zone, for additional stock ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: American Express, Cisco, JPMorgan

Featured in this week’s Stocks Near A Buy Zone column, American Express is building a giant mug base with handle that shows a buy point of 182.25. Shares are only 4% below their buy point, as they fell 0.6% on Monday. On the upside, the stock’s relative strength line is approaching new highs, which is a particularly positive sign ahead of a potential breakout.

Banking giant JPMorgan is in the buy range above its fixed base buy point of 138.76 after Monday’s 0.9% gain, according to IBD MarketSmith’s chart analysis. Stocks are also rebounding from their main 50-day moving average.

JPM stock boasts a strong IBD composite rating of 94 out of a perfect 99, per IBD stock check. The composite rating is designed to help investors easily find the highest growth stocks.

Cisco Systems ended a five-day losing streak with a 0.5% rise on Monday, but remains below the buy point of 50.81 on a flat basis. Stocks are trying to stop their slide around their 50-day line and are around 4% below the entry.

Top stocks to buy and watch: Palo Alto, Wingstop

Palo Alto Networks is building the right side of a base that has a buy point of 193.01 following last week’s more than 10% jump.

Pass: Last week, the cybersecurity giant announced very strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, on a 26% increase in revenue to $1.7 billion.

Wingstop is in the 5% chase zone after a 169.04 cup entry with a handle that peaks at 177.49 amid Monday’s 1.2% gain. Investors should wait for signs of support before considering buying stocks, especially amid deteriorating general market conditions.

Pass: The Dallas-based restaurant chain has more than 1,900 locations in the United States and abroad, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.

Deere, Toll Eye Latest Purchase Points

Deere shares climbed 1% on Monday but still closed below their 50-day line. The shares are 6% below a buy point of 448.50 in a flat basis.

Pass: An industry gauge, Deere shrugged off recession and inflation fears to generate strong earnings. Last year, rising commodity prices allowed farmers to buy both new and improved machinery.

In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% increase in earnings per share on a 32.2% increase in total revenue, both beating estimates. Earnings growth accelerated for a second consecutive quarter.

Homebuilder Toll Brothers builds a mug base with handle that boasts a buy point of 63.29. On the upside, the stock shows a relative strength line to new highs after Monday’s 1.45% rise. The TOL stock is posting a strong composite rating of 95 IBD.

Pass: Last week, luxury homemaker Toll Brothers beat profit and revenue forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month decline in US existing home prices showed signs of slowing in January.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rose 5.5% on Monday after the company announced that Gigafactory Berlin was now producing 4,000 Model Y vehicles per week. The global electric vehicle giant generally considers 5,000 units per week to be the goal of its factories. At its current rate, the Berlin plant is in production for 208,000 vehicles per year.

Despite their strong rebound since Jan. 6, stocks are still below the 200-day line. This key level appears as a potential resistance zone. Shares closed Monday about 47% off their 52-week high.

Tesla will hold its Investor Day on Wednesday, with Musk teasing his intention to present his “Master Plan 3” at the event. Analysts say they know few details and many doubt there will be any new product announcements. Musk says his Blueprint 3 is about a “pathway to a fully sustainable energy future for Earth.”

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.8% on Monday, bouncing above support around their 200-day line. The shares are around 18% off their 52-week high.

Microsoft shares remain below their 200-day line despite Monday’s 0.4% gain. The stock is more than 20% off its 52-week high after recent losses.


Top growth stocks to buy and watch

Learn to Time the Market with IBD’s ETF Market Strategy

Find the best long-term investments with IBD’s long-term leaders

MarketSmith: research, charts, data and coaching in one place

How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks

Leave a Comment