Major indexes kept the momentum going in the afternoon Wednesday as the Dow Jones Industrial Average and S&P 500 looked to break three-day losing streaks. Nvidia and Super Micro Computer added to early losses, while Cathie Wood holding Robinhood soared on the stock market today. And Tesla rose even after an analyst downgraded it, as GameStop tumbled on its fourth-quarter results.
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Bulls remained in charge of Dow Jones stocks, which held onto a 0.7% gain, or 250 points, while the S&P 500 added 0.3%. Both are trying to rebound after three straight days in the red. On the S&P, technology and communication services lagged.
The Nasdaq edged into positive ground with a gain of less than 0.1%. This comes after it and the S&P posted yet another mild distribution day on Tuesday, flashing warning signs of market tops. Investor’s Business Daily continues to recommend 60%-80% exposure for now.
Volume on the New York Stock Exchange was higher but lower on the Nasdaq vs. the same time on Tuesday. Breadth was strong, with advancers outnumbering decliners by more than 3-to-1 on the NYSE and 2-to-1 on the Nasdaq.
Small caps on the Russell 2000 rose 1.4% in recent action but the Innovator IBD 50 (FFTY) exchange traded fund slipped 1.2% on the stock market today. The yield on the benchmark 10-year Treasury note fell four basis points to 4.18%.
Holiday Retail Sales, Dow Jones Stocks
One thing for investors to watch for is Friday’s report from the Commerce Department on Personal Income and Outlays for February. That will include the personal consumption expenditures index, a key inflation gauge that the Federal Reserve uses to determine interest rates. Core PCE is seen staying unchanged at 2.8% year over year, according to Econoday.
Another item that should be on investors’ radar is retail sales heading into the Easter holiday. The holiday’s early arrival could put a dent in retail sales, according to a report from MarketWatch. The National Retail Federation sees a potential 7% year-over-year decline in spring holiday retail sales as a result, MarketWatch says.
Meanwhile, a majority of stocks in the Dow Jones index gained ground. Walgreens (WBA) rose 2% and will report its second-quarter results on Thursday. Shares are in a downtrend and below the 50-day moving average.
Apple (AAPL) and Microsoft (MSFT) rose while Salesforce (CRM) and Visa (V) fell. Merck (MRK) gapped up more than 4% on a big FDA win for its cardiovascular drug.
Stock Market Today: Semtech, Carnival, Cintas
Elsewhere, analysts at Baird gave semiconductor stock Semtech (SMTC) an outperform rating and a price target of 40 ahead of earnings on Thursday. That is a 59% upside based on Tuesday’s closing price. Shares have rebounded from the 10-week moving average while also clearing a recent resistance level at the 200-day line.
Carnival (CCL) pared losses after a 4% fall and rose 3% and Cintas (CTAS) rose 8% after their earnings reports. Carnival raised its outlook but expects to take a hit to earnings due to costs for rerouting around the Red Sea conflict.
Among the Magnificent Seven, Google-parent Alphabet (GOOGL) is approaching a buy point of 153.78. Also, Nvidia (NVDA) continued to tumble for a second straight day, dropping nearly 3% after falling 2.6% on Tuesday.
Tesla (TSLA) rose over 1% on the stock market today even after analyst Itay Michaeli at Citi lowered his price target to 196 from 224 with a neutral rating. The analyst also expects lower first-quarter deliveries of 429,900 vs. earlier estimates of 473,300.
Outside the group, Super Micro Computer (SMCI), a key artificial intelligence player in the server market, dropped nearly 2%.
Meme stocks were back in play on the stock market today. GameStop (GME) plunged 15% after fourth-quarter sales declined for the second straight quarter, though earnings grew. Shares gapped down below the 50-day moving average in strong volume, which is a sell signal. The stock also undercut its base in intraday trades.
Reddit (RDDT), a popular social media platform for retail investors, crashed 10% after its debut last week. Meanwhile, Trump Media & Technology (DJT) soared on the second day of trading. But speculation is rife that the stock may be getting a lift from short sellers.
HubSpot, Monday.com Setting Up
Some software stocks are in bases. HubSpot (HUBS) is testing the 50-day moving average in a flat base while IBD 50 holding Monday.com (MNDY) is close to a buy point.
Shares of Robinhood (HOOD) rose 4% after the brokerage firm launched its first credit card. Robinhood is a holding in Cathie Wood’s ARK Innovation ETF (ARKK).
Tuesday’s Stock Of The Day, ServiceNow (NOW), is in a flat base with a buy point of 815.32. The enterprise software company has a perfect IBD Composite Rating of 99. Also, Vericel (
Read More: Stock Market Today: Dow Jones Rises 250 Points; Nvidia, SMCI Fall, GameStop