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3 Dow Jones stocks to buy and sell after earnings


  • Several Dow Jones stocks have come under the spotlight after posting earnings.
  • JPMorgan Chase (JPM) is guilty of the charges filed after the first quarter results.
  • Verizon (VZ) title beat is put to the test in stock VZ.
  • IBM (IBM) provides an excellent opportunity for buyers.

Source: Venturelli Luca / Shutterstock.com

Now that two weeks into the earnings season, April is proving mostly tough, even for venerable Dow Jones stocks. The blue-chip index is on course for a 3.5% loss this month and its weakest performance since September. And it also helped push the baseline average down 8.5% in 2022.

Still, that’s not to say that Dow Jones Industrials earnings reports have been uniformly bad.

It’s just a more difficult operating environment for these companies to support. Beneath the surface there have been winners, alongside losers. Let’s take a look at three recent earnings reports and determine which Dow Jones stocks investors should buy or sell.

Teleprinter Company Current price
JPM JPMorgan Chase $122.59
VZ Verizon $48.77
IBM IBM $135.81

JPMorgan Chase & Co. (JPM)

3 Dow Jones stocks to buy and sell after earnings

Source: Charts from TradingView

JPMorgan Chase (NYSE:JPM) looks like a sell out of long positions today or even a short position.

Aren’t banks supposed to benefit from higher interest rates? That’s the general rule, but business, as in life, is never so black or white. And the release of JPM’s results last week delivered on that front.

In summary, the financial giant suffered a shortfall due to lower investment banking fees, higher credit reserves and lower trading income from equities and fixed income securities.

Technically, investors reacted by sending this Dow Jones stock down more than 3% following the report. Today, the situation has worsened.

After staging a modest rally, stocks have now narrowly broken their over-thirteen-month low, as well as their 50% retracement level since the Covid-19 cycle dating back to March 2020.

With weekly Stochastics confirming price weakness and a descending Bollinger Band not helping matters for the bulls, JPM stock opens for a much larger correction. As such, JPM stock may not find a bottom until a key longer-term trend and Fibonacci support zone below $100 are in play.

Verizon (VZ)

3 Dow Jones stocks to buy and sell after earnings

Source: Charts from TradingView

Verizon (NYSE:VZ) is another Dow stock to close or sell today.

Last week, the wireless services giant recorded a slightly better than expected higher and lower pace for its first quarter. But management surprised investors by slightly cutting its outlook for full-year wireless revenue and profit growth.

Despite CEO Hans Vestberg’s encouraging words that Verizon is well positioned for long-term growth in its mobility, networking and broadband markets, investors have opted bearishly to live in the moment and have done VZ shares fell more than 5.50% following the report. .

Technically, the worst of the damage in the VZ stock may be just beginning. As the extended monthly chart reveals, stocks made up higher volume, a bearish double engulfing candlestick pattern, which traded via Fibonacci support linked to Verizon’s Covid-19 bottom. Now the price action is threatening critical sideways and bullish support.

Coupled with a lower-positioned bearish trend in the VZ Stochastic indicator, a longer-term correction towards $36-$41 should prompt investors to book capital gains in Verizon shares, rather than relying on the future income to save the day.

IBM (IBM)

3 Dow Jones stocks to buy and sell after earnings

Source: Charts from TradingView

Unlike the other two Dow Jones stocks I mentioned, IBM (NYSE:IBM) is a purchase based on its results.

It’s been ten years of missed opportunities for IBM stock investors. Since April 2012 (adjusted for dividends), owning IBM stock has resulted in a big bagel return. In comparison, the leading index generated a return of more than 220%.

Today, however, this doggish Dow stock may deserve more than a day of outperformance. On the back of its earnings, IBM shares rose 5% on the month after jumping more than 7% immediately after the release. In addition, this blue chip is almost in the green since the beginning of the year, compared to the 8.6% drop in the Dow Jones.

Technically, a decade of lost performance also bodes well for buying IBM stock. IBM shares are moving away from the all-time high of 2013 after putting in place a very large and often disorderly consolidation.

At present, the large congestion pattern looks set to end its activity with an upside breakout from a smaller, high-level double bottom that has been developing since June.

I would advise investors to wait and buy IBM shares on a second attempt and pattern reaction at $140.51 which is confirmed by a nearby stochastic cross.

For that patience, a true breakout could take IBM shares towards $200 over the next 12-18 months, while providing investors with an attractive, above-market dividend of 4.85%.

As of the date of publication, Chris Tyler had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

The information offered is based on the observations of Christopher Tyler and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related thoughts, follow Chris on Twitter @CAT_Options and StockTwits.



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