Major indexes continued to tread a flat line in midday trades Wednesday as investors awaited the Federal Reserve’s rate decision and subsequent comments from Fed Chairman Jerome Powell. Nvidia gave up some of Tuesday’s gains on the stock market today while Super Micro Computer continued to fall. And famed investor Cathie Wood sold shares of Block.
X
The Dow Jones Industrial Average and the S&P 500 hovered around break-even territory a little after noon on the stock market today. Among S&P sectors, health and energy lagged but utilities and industrials gained. The Nasdaq edged down in the wake of gains on light volume Tuesday.
On Wednesday volume continued to run lower on both the Nasdaq and New York Stock Exchange compared with the same time on Tuesday. Breadth improved with advancers edging past decliners on both exchanges by a small margin.
Small cap stocks on the Russell 2000 edged up while the Innovator IBD 50 (FFTY) exchange traded fund gained 0.7%. Also, the yield on the benchmark 10-year Treasury note fell nearly 2 basis points to 4.28%.
The Federal Reserve meeting ends Wednesday and interest rates are widely expected to stay the same. Traders see a higher chance of the first rate cut in the June meeting.
Meanwhile, comments from Fed Chair Powell may hold further clues. In December, the Fed’s dot plot suggested three rate cuts in 2024, beginning in March. But with rates likely to stay the same on Wednesday, Powell’s new plan will be closely scrutinized.
Stock Market Today: Nvidia, Super Micro Dip
Super Micro Computer (SMCI) continued to tumble in the wake of its stock offering. Super Micro offered 2 million shares at 875 for a total of $1.75 billion. The offer is expected to close around March 22. Shares fell more than 5% Wednesday, marking a fifth-straight day in the red.
Nvidia (NVDA) continued to bump along below the 900 level as shares dipped nearly 1% in midday action. Nvidia managed to turn losses into gains the previous two sessions, so it remains to be seen if the leader in artificial intelligence chips can keep it up.
Arista Networks (ANET) flirted with buy territory Wednesday. The rival of Cisco Systems (CSCO) is trying to break out from a flat base with an entry at 292.66. The relative strength line is at a new high.
Also, famed investor Cathie Wood sold shares of Block (SQ), a holding in both her Ark Next Gen Internet ETF (ARKW) and Ark Innovation ETF (ARKK). Shares of Block dropped 2% on the stock market today.
Dow Jones Stocks
On the Dow Jones index, entertainment giant Disney (DIS) led gains while Caterpillar (CAT) and Amgen (AMGN) fell.
Disney and Merck (MRK) remain in buy zones, according to IBD MarketSurge.
Meanwhile, Nike (NKE) struggled below its 50-day moving average with earnings due on Thursday. The key level has been a level of resistance since December for the Dow Jones leader.
Stock Market Today: Retailers Report
Earnings moved some retail stocks. Ollie’s Bargain Outlet (OLLI) seesawed and was up fractionally in midday action, while General Mills (GIS) added gains to a three-day rally and cleared the 200-day moving average.
Among Chinese internet retail plays, PDD (PDD) soared past a buy point of 139.06 but pulled back below it after beating sales and earnings views for its fourth quarter.
More results from Lululemon (LULU) and Darden Restaurants (DRI) are due Thursday.
Outside earnings, Chipotle Mexican Grill (CMG) jumped more than 5% after news of a 50-for-1 stock split. The stock split does not change the valuation or investors’ existing stake in the company’s shares.
Other Movers: Texas Roadhouse, Marriott, Alphabet
Texas Roadhouse (TXRH) is in buy range from a four-weeks-tight entry at 152.46. Marriott (MAR) is also near a three-weeks-tight entry of 252.17.
In health care, Neurocrine Biosciences (NBIX) is in a flat base with a buy point of 143.35.
And in the IBD MarketSurge Growth 250, Magnificent Seven stock Google-parent Alphabet (GOOGL) has formed a flat base with a buy point of 153.78.
IBD 50 stock Shockwave Medical (SWAV) gapped up after forming a three-weeks-tight pattern with a buy point of 270.96. Also in the IBD 50, crypto play CleanSpark (CLSK) and Hims and Hers Health (HIMS) were top gainers.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
YOU MAY ALSO LIKE:
Is Nvidia A Buy?
IBD Live: Learn And Analyze Growth Stocks With The Pros
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSurge: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
Source: investors.com
