Warren Buffett stock falls on earnings miss; Tesla Investor Day on deck

Dow Jones futures were higher leading up to Tuesday’s open after the Dow Jones Industrial Average trimmed gains to 72 points on Monday. Warren Buffett Stocks Western petroleum (OXY) reported earnings after Monday’s close, while Tesla (TSLA) will hold its investor day on Wednesday, with CEO Elon Musk teasing a reveal of “Master Plan 3” details.


Warren Buffett Stock reports profit

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

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

Elsewhere on the revenue front Business day (WDAY) fell more than 2% after reporting Q4 results, while Zoom video communication (ZM) rose 6% in after-hours trading.

Other notable companies reporting earnings this week include C3.ai (KI), Costco wholesale (COST), Money tree (DLTR), from Kohl (KSS), from Lowe (LOW), Macy’s (M), Ross stores (ROST) and Sales team (CRM).

Fair today

On Monday, the Dow Jones Industrial Average rose 0.2% and the S&P 500 gained 0.3%. The technology exchange Nasdaq 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) rose 0.3%.

Electric vehicle giant Tesla traded 5.5% higher on Monday. Among the Dow Jones stocks, Apple (AAPL) rose 0.8% and Microsoft (MSFT) climbed 0.4% in today’s stock market.

IBD Leaderboard watch list stock Palo Alto Networks (PANW), Deere (BY), 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 the recent weakness in the stock market.

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

4 Top Growth Stocks to Buy and Watch in the CurRent Stock Market Rally

Dow Jones Futures Today: Oil Prices, Treasury Yields

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

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

IBD’s latest newsletter, MarketDiem, brings actionable ideas for stocks, options, and crypto to your inbox.

What to do during the struggling stock market rally

This is an important time to read IBD’s The Big Picture column with the stock trending in an “uptrend under pressure” amid sharp losses in recent sessions.

The current upward trend is coming under increasing pressure, which justifies keeping a lower exposure level of 40% to 60%. Pay special attention to sell signals within your portfolio. Cut stocks that fall 7% to 8% from your entry and positions that fall below the 50-day or 10-week moving averages.

(Check out IBD stock lists 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 cup-with-handle base showing a buy point of 182.25. The shares are just 4% below their buy point after falling 0.6% on Monday. Bullish, the stock’s relative strength line is approaching new highs, which is a very positive sign ahead of a potential breakout.

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

JPM shares show a solid 94 IBD Composite Rating out of a perfect 99, per IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

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

Top stocks to buy and watch: Palo Alto, Wingstop

IBD Leaderboard watchlist share Palo Alto Networks is building to the right of a base with a buy point of 193.01 in the wake of last week’s jump of more than 10%.

backstory: Last week, the cybersecurity giant reported very strong results for the quarter ending January, when earnings were $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 past a 169.04 cup-with-handle entry coming in at 177.49 amid Monday’s 1.2% gain. Investors should wait for signs of support before considering a stock purchase, especially in light of deteriorating general market conditions.

backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and abroad, according to Dow Jones Newswires. The international locations are 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 points of sale

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

backstory: Deere, an industry benchmark, has shaken off fears of recession and inflation to post solid earnings. Over the past year, higher commodity prices have enabled farmers to purchase both new and improved equipment.

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

Homebuilder Toll Brothers builds a cup-with-handle base that displays a buy point of 63.29. Bullish, the stock has a relative strength line at new highs after Monday’s 1.45% gain. TOL shares show a solid 95 IBD Composite Rating.

backstory: Last week, luxury homebuilder Toll Brothers beat earnings and revenue forecasts while maintaining its full-year expectations. 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 leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares rose 5.5% on Monday after the company announced that Gigafactory Berlin is now producing 4,000 Model Y vehicles per week. The global EV giant generally sees 5,000 units per week as the target for its factories. At the current rate, the Berlin plant is on track for 208,000 vehicles per year.

Despite their strong recovery since January 6, the shares are still below the 200-day mark. That key level looms as a potential area of ​​resistance. Shares closed around 47% of their 52-week high on Monday.

Tesla is holding its investor day on Wednesday, with Musk teasing plans to showcase its “Masterplan 3” at the event. Analysts say they know few details and many doubt that there will be any new product announcements. Musk says his Master Plan 3 is about a “pathway to a fully sustainable energy future for the Earth.”

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.8% on Monday and bounced back above support around their 200-day line. Shares are down about 18% from their 52-week high.

Microsoft shares remain below the 200-day mark despite Monday’s gains of 0.4%. The stock is more than 20% off its 52-week high following recent losses.


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