Dow Breaks 13,000, AMZN Earnings Soar

Stocks are sharply higher this morning as better than expected earnings continue to roll out. Amazon.com (AMZN | Quote | Chart | News | PowerRating) reported spectacular Q1 profits of $111 million compared to $51 million one year ago. AMZN is currently up 17% in pre-market trading.

Other notable earnings performances come from blue-chip stock Boeing, which reported a 27% increase in first-quarter net income with $877 million or $1.13 earnings per share. PepsiCo (PEP | Quote | Chart | News | PowerRating) reported a 16% rise in net income and Chicago-based electric utility provider Exelon (EXC | Quote | Chart | News | PowerRating) posted Q1 earnings of $691 million vs. $400 million from last year.

New developments in Apple's (AAPL | Quote | Chart | News | PowerRating) options backdating scandal are leading the stock higher today by 1% in pre-market trading. Positive sentiment returns as the options scandal is put to rest with no adverse consequences to the company.

For more stocks to watch, see TradingMarkets 7 Trading Ideas for Today.

Wednesday's PowerRatings Heat Map continues to be moderately bearish, with very little green to be found. Taking long positions at this point in the market increases risk. The Drug sector continues to show an interesting divergence between high and low PowerRatings stocks and opens up the possibility to start positions both to the long side and to the short side.

Today's featured list comes from our PowerRatings Biggest Down Changes. These stocks have had the biggest one-day move to the downside in their PowerRatings. These stocks should likely be avoided and are possible short candidates.