Dow Jones Flat After Economic Data; Magnificent Seven Stock GOOGL Breaks Out To New High. Apple In Buy Zone

The Dow Jones Industrial Average started to take a breather Wednesday after scaling to record highs in a nine-day winning streak, but the index pared its losses in midmorning trades.


Dow components were off was off 0.2% premarket, but reversed course. The index essentially was flat in recent action but drifted into positive ground at various times.

Meanwhile, the S&P 500 made up early losses amid stronger economic data and added 0.1% on the stock market today. The Nasdaq rose 0.4%. Among sectors, communication services and energy gained while utilities and consumer staples lagged.

The market’s move came as existing home sales rose to 3.82 million in November, above economist estimates for 3.775 million and October’s 3.79 million, according to Econoday.

Further, consumer confidence for December came above views of 103.4 at 110.7. Friday’s personal income and outlays report for November looms.

Dow Jones: Decliners Outnumber Advancers

Volume on the New York Stock Exchange was lower while higher on the Nasdaq compared with the same time on Tuesday. Breadth was a point of concern as decliners outnumbered advancers.

The Investors Intelligence’s Advisor Sentiment also threw in a word of caution after bulls propped up its gauge for the fourth straight week to 56.9%. Any move above 55% in a bull market signals a caution zone.

The small cap Russell 2000 outperformed and rose 0.8% while the Innovator IBD 50 (FFTY) exchange traded fund showed a lackluster performance, trading flat.

West Texas Intermediate futures rose nearly 1.5%, leaving crude oil at $74.97 a barrel. And the yield on the benchmark 10-year Treasury note fell another two basis points to 3.89%.

Dow Jones Stocks

Among Dow Jones stocks, Apple (AAPl) rose and remained in a buy zone from a buy point of 192.93. Microsoft (MSFT) and Chevron (CVX) also gained.

Caterpillar (CAT) is near a buy point of 293.88. And Nike (NKE) is building a long cup base with a buy point of 131.31. Earnings are due Thursday.

Stocks Moving Today

Shares of FedEx (FDX) tumbled by more than 10%, falling below their 50-day moving average after the shipping company missed earnings and sales views. Shares were in a buy zone but now have sunk back into sell territory.

General Mills (GIS) also fell after it reported second-quarter results. Sales declined 2% though earnings of $1.25 a share came in higher than the $1.10 a share reported a year ago. The company gave a cautious outlook due to slower volume recovery. Shares are trying to hold the 50-day moving average.

Steelcase (SCS) initially fell at Wednesday’s opening bell after reporting third-quarter results late Tuesday. But the stock quickly reversed and jumped and rose more than 9% in recent action. Sales declined 6% for the furniture maker and it expects a 3% decline at the midpoint in fourth-quarter sales.

EnerSys (ENS) gapped up more than 4% after the company raised its third-quarter earnings outlook to $2.55 per share, up from $1.85 as more of its battery products may qualify for a tax credit.

Among chip stocks, Micron (MU) fell more than 1%. Earnings are due after the market close.

And Argenix (ARGX) plunged more than 20% after its advanced phase study for its treatment for skin blisters failed.

Stocks On Watch

Several growth stocks are extended but a few are near buy points. Outside Dow Jones, Netflix (NFLX) is in a buy zone above a buy point of 485. Airbnb (ABNB) is near an entry of 151,16 in a double-bottom base.

Magnificent Seven stock Alphabet (GOOGL) broke out of a cup with handle with a buy point of 139.42. Shares for the Google parent are on track for the highest closing price since April 2022, according to Dow Jones Market Data.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.


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