The Future: Warren Buffett’s Falling Money Stocks

Dow Jones futures were higher ahead of the open on Tuesday after the Dow Jones Industrial Average cut gains to 72 points Monday. Warren Buffett stock market Occidental Petroleum (OXY) reported earnings after the close on Monday, while Tesla ( TSLA ) is set to hold an investor day on Wednesday, with CEO Elon Musk teasing a “Master Plan 3” disclosure.


Warren Buffett Financial Statements

Occidental Petroleum missed its Q4 target late Monday, resulting in a 2% drop in extended trading. The Warren Buffett-backed giant reported that earnings fell 9% to $1.61 per share in Q4 while revenue rose 4% to $8.22 billion. During the year, EPS ballooned 267% to $9.35 while sales rose 43% to $37.1 billion. Occidental also raised its dividend and announced a $3 billion share repurchase plan.

Billionaire investor Buffett has been buying shares of Occidental Petroleum recently, along with his own. Berkshire Hathaway (BRKA) is adding more than 20 million OXY shares to its portfolio by July 2022. Berkshire Hathaway has raised its OXY stake to 21.4% of the company, according to FactSet.

Somewhere on income, Labor Day (WDAY) fell more than 2% after reporting Q4 results, while Video Communication Zoom (ZM) jumped 6% in after-hours trading.

Other notable companies reporting earnings this week are: (AI), Costco Wholesale (COST), The Dollar Tree (DLTR), Kohl’s (KSS), Lowe her (LOW), Macy’s (SURGICAL), Ross Stores (ROST) again Salesforce (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 ) rose 0.3%.

Auto giant Tesla traded up 5.5% on Monday. Among the Dow Jones stocks, Apple (AAPL) rose 0.8% as well Microsoft (MSFT) is up 0.4% in today’s stock market.

IBD Leaderboard watch list Palo Alto Networks (PANW), Deere (DE), Toll Brothers (TOL) and Wingstop (WING) – and Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase Price (JPM) – are among the top stocks to watch amid recent stock market weakness.

Palo Alto is an IBD Lead Watch List stock. Deere was recently IBD’s Stock Of The Day pick. American Express and Toll Brothers are featured in this week’s Closest Buy column.

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

Dow Jones Futures Today: Oil Prices, Treasuries Rise

Before the opening bell on Tuesday, Dow Jones futures rose 0.15% vs. real value, and the S&P 500 futures rose 0.1%. The Nasdaq 100 futures rose 0.2% vs. true value. Remember that overnight performance in the Dow Jones futures and elsewhere does not necessarily translate into actual trading in the stock market’s daily futures.

The 10-year U.S. Treasury yield fell on Monday, settling at 3.92%. Oil prices fell less than 1% on Monday, stopping after two sessions. West Texas Intermediate futures traded below $76 a barrel.

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What to Do in a Struggling Business

Now is an important time to read IBD’s Big Picture with the trend of the stock market in “growth under pressure” in large losses in the recent session.

The current development comes under increased pressure, which allows to maintain a minimum coverage level of 40% to 60%. Pay special attention to sell signals in your portfolio. Cut stocks that fall 7% to 8% from your entry and those that break below the 50-day or 10-week moving average.

(See IBD Stock Lists like the IBD 50 and Stocks Near the Buy Zone, for more 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 Buy Zone, American Express is building a strong base-arm that indicates a buy point of 182.25. Shares are just 4% below their buy point, having fallen 0.6% Monday. Logically, the stock’s strength line is near a new high, which is a particularly good sign ahead of a potential breakout.

Banking giant JPMorgan is in its buy range above the 138.76 buy-sell ratio after Monday’s 0.9% gain, according to IBD MarketSmith chart analysis. The stock is also rebounding from its key 50-day moving average.

JPM stock shows a solid 94 IBD Composite Rating from a solid 99, per IBD Stock Checkup. Portfolio Value is designed to help investors easily find high-growth stocks.

Cisco Systems ended a five-day losing streak with a 0.5% gain Monday but remained below the 50.81 level buy point. Shares are trying to stop their slide near their 50-day line and are about 4% lower than the entry.

Top Stocks to Shop and Watch: Palo Alto, Wingstop

The IBD Leaderboard watch list shares of Palo Alto Networks are building on the right side of the base which has a 193.01 buy point as a result of last week’s jump of more than 10%.

Previous article: Last week, the web giant announced positive results for the quarter ending in January which saw earnings of $1.05 a share, up 81% vs. a year ago, on a 26% jump in revenue to 1.7 billion dollars.

Wingstop is in the 5% retracement area above 169.04 cup-with manual entry that went above 177.49 amid Monday’s 1.2% gain. Investors should wait for signs of support before considering buying stocks, especially in bearish market conditions.

Previous article: 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 UK Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.

Deere, Toll Eye Latest Buy Points

Shares of Deere rose 1% Monday but still closed below their 50-day line. Shares are 6% below the 448.50 buy point in the underlying trend.

Previous article: An industry stalwart, Deere has weathered the recession and inflationary fears to deliver strong profits. In the past year, rising prices have prompted farmers to purchase new and improved machinery.

In the fiscal first quarter ended January 29, the tractor maker posted a 124% jump in earnings per share on a 32.2% total revenue increase, both estimates. Earnings growth was accelerated to the second straight quarter.

Homebuilder Toll Brothers is building a base-on-hand that shows a 63.29 purchase point. Unfortunately, the stock boasts a relative strength line at a new high after Monday’s 1.45% rise. Tol shares reflect a 95% IBD Composite Rating.

Previous article: Last week, homebuilder giant Toll Brothers beat its earnings and revenue forecasts while maintaining its full-year guidance. The homebuilder financial report comes as a 12-month slide in US home prices showed signs of slowing in January.

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Tesla Stock

Tesla shares rose 5.5% on Monday after the company announced that its Berlin Gigafactory is producing 4,000 Model Y vehicles a week. The global EV giant generally takes 5,000 units per week to be its industry goal. Currently, the Berlin factory is on track for 208,000 cars per year.

Despite the strength they have gained since January 6, the stock is still below the 200-day line. This key level is considered a potential resistance area. The stock closed Monday about 47% off its 52-week high.

Tesla will hold an investor day on Wednesday, with Musk teasing plans to present “Master Plan 3” at the meeting. Analysts said they knew few details, and many doubt there will be any new product announcements. Musk said his Plan 3 is about “a path to a complete and sustainable energy future for the Earth.”

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.8% Monday, moving back above support near the 200-day line. The stock is about 18% off its 52-week high.

Microsoft shares remained 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.


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