Stock Market, Dow Jones Rally On Facebook Earnings

The major stock indexes added to Tuesday’s gains with more solid advances early Wednesday. The Dow Jones industrial average advanced almost 300 points.




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Possible catalysts included ADP private payrolls, which increased 227,000 in October, beating estimates. Also, after the stock market close Tuesday, tech leader Facebook (FB) reported its Q3 earnings results. (For updates on this story and other market coverage, visit the Stock Market Today.)

The Dow Jones industrials rose 1.1% while the S&P 500 moved up 1.3%. The tech-heavy Nasdaq advanced 2.3%.

Keep in mind that a new uptrend can be only days away. Tuesday was the first day of the new rally attempt. Follow-through days normally occur on day four or later of a rally attempt. In rare instances, they can occur on the third day. A follow-through day confirms a new uptrend is underway.

Stock Market Earnings: Facebook Rallies

Among companies reporting earnings, Facebook rose 6% after its mixed Q3 earnings results late Tuesday. The social media giant topped profit targets but fell short on revenue estimates. Its number of monthly active users also missed views.

Fellow FANG stocks Amazon.com (AMZN) and Netflix (NFLX) soared 5% and 7%, respectively. Both stocks have a great deal of work ahead of them to repair the damage of recent weeks.

Meanwhile, Paycom Software (PAYC) trimmed losses to 1% on disappointing guidance in the current quarter. The computer software stock is about 21% off its 52-week high after giving up the vast majority of the gains from a 115.64 double-bottom entry.

General Motors Regains Key Level

Before the stock market openGeneral Motors (GM) beat the Street’s top- and bottom-line estimates, sparking a 6% gain in morning trade. The stock is poised to regain its 50-day line, which it has been trading under since late June. No new entry is in sight, but the stock is moving up the right side of a new base formation.

Last week, electric-auto maker Tesla (TSLA) surged higher after crushing estimates and showing a profit in the most recent quarter. Shares are building the right side of a cup-shaped base that shows a 387.56 buy point.

IBD 50 Stocks: Medtech Plunges

Among the leading growth stocks, PayPal (PYPL) gained 4% as it tries to regain its long-term 200-day moving average line. Shares are building the right side of a potential base. The leading payment processor’s relative strength line is showing significant strength.

On the downside, Integra LifeSciences (IART) declined nearly 14% after its mixed Q3 earnings results. The medtech stock had been holding up relatively well amid the market correction. But Wednesday’s action sends the stock tumbling below its 50- and 200-day moving average lines.

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