Warren Buffett’s Stock Drops on Miss Earnings; Tesla Investor Day on Deck

Dow futures rose ahead of Tuesday’s open after the Dow Jones Industrial Average cut its gains to 72 points on Monday. Warren Buffett stock Occidental Petroleum (OXY) reported earnings after Monday’s close, while Tesla (TSLA) is scheduled to hold its Investor Day on Wednesday, where CEO Elon Musk teased the disclosure of details of “Master Plan 3.”




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Warren Buffett’s stock earnings report

Occidental Petroleum missed its earnings targets for the fourth quarter late Monday, resulting in a 2% decline in the extended trade. The Warren Buffett-backed energy giant reported earnings fell 9% to $1.61 per share in the fourth quarter while revenue increased 4% to $8.22 billion. Over the year, EPS swelled 267% to $9.35, while sales rose 43% to $37.1 billion. Occidental also raised its dividend and announced a $3 billion share buyback plan.

Billionaire investor Buffett has been on a buying spree of Occidental Petroleum recently, with his company Berkshire Hathaway (Barka) has added more than 20 million shares of OXY 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 earnings front, a work day (day) decreased by more than 2% after the announcement of the fourth quarter results, while Zoom for visual communications (ZM) jumped 6% in after-hours trading.

Other notable companies reporting earnings this week are: C3. ai (Amnesty International), Costco wholesale (it costs), dollar tree (DLTR), kohl (KSS), Louie (a little), Messi (M), Ross Stores (Rust) And sales force (CRM).

stock market today

On Monday, the Dow Jones Industrial Average rose 0.2% and the S&P 500 rose 0.3%. The Nasdaq Technology Composite Index rose 0.6%. Among the exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ(Up 0.7%, SPDR S&P 500)spy) increased by 0.3%.

Electric car giant Tesla traded up 5.5 percent on Monday. Among Dow Jones stocks, apple (AAPL) rose 0.8% and Microsoft (MSFT) is up 0.4% in the stock market today.

IBD Leaderboard Stock Watchlist Palo Alto Networks (Banu), monastery (DE), Toll Brothers (TOL) And wing stop (wing) – as well as Dow Jones shares American Express (AXP), Cisco systems (CSCO) And c. B. Morgan Chase (JPM) – among the top stocks to watch amid recent stock market weakness.

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Palo Alto is IBD Leaderboard Stock watch list. Deere was recently selected from IBD Stock Of The Day. American Express and Toll Brothers appeared in the stocks column near the buy zone this week.


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Dow futures today: oil prices, treasury yields

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

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


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What to do in a faltering stock market rally?

Now is an important time to read IBD’s Big Picture column with the stock market heading into an “uptrend under pressure” amid sharp losses in recent sessions.

The current uptrend is under increasing pressure, which justifies keeping exposure below 40%-60%. Pay particular attention to selling signals within your portfolio. Cut stocks that are down 7% to 8% of your income and holdings that fall below their 50-day or 10-week moving averages.

(See IBD inventory lists as the defect 50 and stocks near the buy area, for additional stock ideas.)


Five Dow Jones stocks to buy and watch now


Dow Jones Stock Buying and Watching: American Express, Cisco, JPMorgan

Featured in the Stocks Near the Buy Zone column for this week, American Express is building a giant coaster with handle offering 182.25 Buy points. Shares are just 4% below a buy point, down 0.6% on Monday. To the upside, the stock’s RSI line is approaching new highs, which is a particularly positive sign ahead of a possible breakout.

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

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JPM shares It shows 94 composite IBD classifications out of 99 ideal for each 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, up 0.5% on Monday, but remained below the 50.81 buy point of the flat base. Stocks are trying to stop their slide around the 50 day line which is about 4% below the entry level.

Top stocks to buy and watch: Palo Alto, Wingstop

Palo Alto Networks on the IBD Leaderboard watch list is building the right side of a base of 193.01 Buy on the heels of last week’s jump of more than 10%.

Backstory: Last week, the cybersecurity giant reported very good results for the quarter ending in January that saw earnings of $1.05 per share, up 81% year-over-year, with a 26% jump in revenue to $1.7 billion.

Wingstop is in 5% chase territory after entering 169.04 cup handle which reaches 177.49 amid Monday’s 1.2% gain. Investors should wait for signs of support before considering buying stocks, especially in light of the deteriorating general market conditions.

Backstory: 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 presence to 1,959 restaurants worldwide.

Deere, Toll Eye Latest Buy Points

Dairy shares rose 1% on Monday, but still closed below the 50-day level. The stock is down 6% below the 448.50 buy point in a flat base.

Backstory: Industry leader Deary shrugged off recession and inflation concerns to post solid earnings. Last year, high commodity prices allowed farmers to purchase new and upgraded machinery.

In the fiscal first quarter ending Jan. 29, the tractor manufacturer reported a 124% jump in earnings per share on a 32.2% increase in total revenue, both of which topped estimates. Earnings growth accelerated for the second consecutive quarter.

Homebuilder Toll Brothers builds a cup coaster with handle that displays 63.29 POIs. To the upside, the stock boasts its RSI at fresh highs after Monday’s rally of 1.45%. TOL Stock Shows a strong 95 IBD compound rating.

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


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


Tesla stock

Tesla stock rose 5.5% on Monday after the company announced that its Berlin Gigafactory is now producing 4,000 Model Y cars a week. The global EV company generally considers 5,000 units per week to be the goal for its factories. At its current pace, the Berlin plant is on track for 208,000 cars a year.

Despite its strong rebound since Jan. 6, stocks are still below the 200-day line. This key level looms as a potential resistance area. On Monday, the shares closed down about 47% from their 52-week high.

Tesla will hold its Investor Day on Wednesday, with Musk planning to tease his plans to introduce “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 Master Plan 3 is about “the path to an all-Earth sustainable energy future.”

Dow Jones leaders: Apple and Microsoft

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

Microsoft shares remained below the 200-day mark despite Monday’s gain of 0.4%. The stock is down more than 20% from its 52-week high after the recent losses.

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