Dow Jones gets like 3 Warren Buffett shares Eye Buy Points; Coinbase emerges as Bitcoin rises| Investor’s Business Daily

The Dow Jones Industrial Average rose as stocks traded mixed. A trio of Warren Buffett stocks are nearing buy points. Coin base (COIN) and Riot Blockchain (RIOT) rose as bitcoin rose. Meanwhile, Microsoft (MSFT) fell after an analyst note.

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There were plenty of breakouts despite the measured action. Skechers (SKX), Builders FirstSource (BLDR) and Tri Pointe Homes (TPH) all tested entries.

Nasdaq Lags As Small Caps Jump

The Nasdaq lagged behind the other major indexes and was basically flat. Sure (LCID) was a strong performer here, rising nearly 6%.

The reference index S&P 500 rose 0.3 percent. CarMax (KMX) rocketed more than 10% on a 4th quarter earnings pace. It has its best gain since April 17, 2020, when it rose 10.4%, according to Dow Jones Market Data.

The S&P 500 sectors were mostly positive. Property, energy and materials were the best. Technology was the only area in negative territory.

Small caps outperformed for the second day in a row, with the Russell 2000 up more than 1%. Growth stocks were also excellent, with the Innovator IBD 50 ETF (FFTY) also up over 1%.

Dow Jones today: Microsoft hit after this call

The Dow Jones managed to squeeze out a gain towards the end. It was up nearly 200 points, or 0.5%.

larva (CAT) performed well again, rising almost 3%. It is pulling away from its 200-day moving average.

The Microsoft share performed worst on the blue chip index. It fell nearly 2%, but remains above key moving averages. It is trading above 276.86, according to MarketSmith analysis.

The stock fell after UBS trimmed its estimates on its Azure cloud platform. The firm has a neutral rating on MSFT with a target of 275.

“Based on our (roughly) 20 conversations with AWS/Azure customers and partners, we conclude that customers’ efforts to optimize/trim cloud spending will be deeper and last longer than most believe,” analyst Karl Keirstead said in a note to the customers. “Relative to the consensus view that we are deep enough into these efforts that the slowdown in cloud growth can begin to moderate meaningfully as early as (Q2 of 2023), we conclude that such efforts will continue at a high level through 2023. “

Warren Buffett stocks eye listings

Buffett is hailed by some as the greatest investor of all time. A trio of stocks owned by his firm Berkshire Hathaway (BRKB) is currently looking at contributions.

Insurance game Aon (AON) is nearing a cup-with-handle entry at 328.43, MarketSmith analysis shows.

Aon’s IBD Composite Rating comes in at 82 out of 99. Revenue is a key strength, with the EPS rating a strong 88 out of 99.

MasterCard (MA) forms a double bottom base with an ideal entry point at 369.25. The stock cleared its 50-day moving average on Tuesday, a bullish sign.

MA stock has an IBD Composite Rating of 93. Big Money has bought the stock recently, with the Accumulation/Distribution rating at B.

Buffett is also a holder of Leaderboard Watchlist shares Flooring and furnishings (FND), which is currently near an entry of 102.71. Floor & Decor operates 191 warehouse format stores and six design studios in 36 states. It has an EPS rating of 97 out of 99.

Berkshire is in the news after Buffett said he wants to increase his Japan holdings. Berkshire has raised its stake in each of Japan’s top five trading houses – Itochu, Mitsubishi, Mitsui, Sumitomo and Marubeni – to 7.4%.

The Oracle of Omaha said in an interview that further investment in Japan is “always a matter of judgment.”

Coinbase stock, RIOT jump as Bitcoin gains

Coinbase surged amid another surge in bitcoin prices.

COIN stock rose nearly 6% but remained well below a cup-with-handle buy point of 85.48. It is now up about 108% so far this year.

Bitcoin, the most famous cryptocurrency, rose nearly 2% on Tuesday. It is now up more than 80% in 2023, an impressive run by anyone’s standards.

Other digital currency bets also rose. Grayscale Bitcoin Trust (GBTC) jumped over 4%.

But it was bitcoin mining game Riot Blockchain that impressed the most as it rose around 16%.

Outside the Dow Jones: Skechers leads breakout

With the stock market in a confirmed uptrend, staying on top of breakouts remains key.

Skechers is in a buy zone after clearing a cup-with-handle entry at 47.80. The volume was low, which is a mistake.

Builders FirstSource is bullish after rising above a flat buy point at 90.31. The relative strength line has moved to fresh highs. Volume was 26% above average in late trade. Ideally, the volume should swell at least 40% at breakout.

Earnings are a key strength of this construction product game. It has a near-perfect EPS rating of 97.

Tri Pointe Homes was among the homebuilders making bullish moves. It is in a buy zone above a flat base of 27.80. However, the volume followed well below average.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.

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