Major indexes held on to early gains Wednesday afternoon as investors reacted to comments from Federal Reserve Chairman Jerome Powell. Meanwhile, Nvidia (NVDA) reversed early losses to rise slightly after foundry partner Taiwan Semiconductor (TSM) shook off the effects of an earthquake in Taiwan. And Tesla (TSLA) clawed back despite negative analyst views on the stock market today.
X
The Dow Jones Industrial Average was up 0.2% in afternoon deals. The index is above its 21-day exponential moving average after dipping below the line Tuesday.
The S&P 500 was higher by 0.4% while the Nasdaq composite led the major indexes with a 0.5% gain. Among the S&P sectors, industrials and energy gained while consumer staples and utilities lagged.
The small-cap Russell 2000 rebounded 0.7% after two days of heavy selling. The Innovator IBD 50 (FFTY) exchange traded fund rebounded from the 50-day moving average with a 0.7% gain. And the yield on the benchmark 10-year Treasury note edged down to 4.36%.
Volume on the New York Stock Exchange was lower and higher on the Nasdaq compared with the same time Tuesday. Breadth improved and advancers slightly outnumbered decliners on both exchanges.
Powell: Risks Balancing Out
At a meeting of the Stanford Business, Government and Society Forum in California, Fed Chief Powell noted continued solid growth, a strong labor market and inflation moving down along a bumpy path in the economy. He mentioned that risks are balancing out regarding rate cuts coming too early or too late.
Powell added indicators showed inflation would return to a target of 2% over time. On Monday, Powell said that February’s inflation data was in line with expectations. But MarketWatch reported that Atlanta Fed President Raphael Bostic said the Fed should wait until the fourth quarter before cutting rates.
In other economic news, the ADP employment report showed that the economy added 184,000 jobs in March, above views for 150,000, according to Econoday.
Dow Jones Stocks
Intel (INTC) plunged more than 7% on the stock market today after the bellwether chipmaker said its foundry operations lost $7 billion in 2023. The company expects to break even on its operating margins “midway between now and 2030.”
Among other tech stocks in the Dow, Microsoft (MSFT) is getting support at its 21-day moving average, according to IBD MarketSurge chart analysis tools. Microsoft stock is on the IBD Long Term Leaders list.
Salesforce (CRM) is rebounding from its 50-day moving average and appears to be building a base with a buy point of 318.71. Further, Caterpillar (CAT) and IBM (IBM) were among the biggest gainers in the index.
Apple (AAPL) rose 0.9% but its 50-day moving average has fallen below the 200-day line.
Stocks Market Today: Tesla Reverses Higher
Tesla reversed and rose 0.7% despite a negative report from Deutsche Bank analyst Emmanuel Rosner. The analyst observed that slowing demand could be compounding the electric-car maker’s high inventory problem.
Meanwhile, Nvidia wavered before reversing to the upside Wednesday afternoon. Nvidia’s key contract manufacturer is Taiwan Semiconductor (TSM), which had to halt some work following a powerful earthquake in Taiwan early today. But shares of Taiwan Semi were up 1.3% in recent action. Nvidia, a Magnificent Seven stock, is a holding on IBD Leaderboard and the IBD 50.
Among earnings movers, game arcade and restaurant operator Dave & Buster’s (PLAY) has gapped up and broken out from a three-weeks-tight base with a buy point of 64.90. Fourth-quarter sales grew 6% while earnings were 21% higher from the year-ago period.
Cal-Maine (CALM) gapped up after getting support around the 10-week moving average. It is extended from a cup-with-handle entry of 57.95.
Warren Buffett holding Ally Financial (ALLY) got a downgrade from JPMorgan to underweight. Finally, IBD 50 stock ELF Beauty (ELF) triggered a sell signal by falling below the 50-day moving average in heavy volume on the stock market today.
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Source: investors.com
