Major indexes closed off the day's highs Wednesday, with the Dow Jones Industrial Average, S&P 500 and the Nasdaq all posting losses in the stock market today.
The Dow dipped less than 0.1%, while the benchmark S&P 500 pulled back nearly 0.2%. The tech-heavy Nasdaq fell nearly 0.6% to end below the 16,000 level, while the small-cap Russell 2000 gave back 0.8%. Volume fell on the New York Stock Exchange and rose on the Nasdaq compared with the same time on Tuesday, according to preliminary numbers.
The Invesco QQQ Trust exchange traded fund sank 0.5%. The Innovator IBD 50 ETF underperformed the major indexes and sold off 1.6% in the stock market today.
The 10-year Treasury yield shed 4 basis points to 4.27%.
In economic news, the Commerce Department's second reading for fourth-quarter gross domestic product showed a 3.2% increase vs. estimates of 3.3% on an annual basis. But personal consumption expenditures rose 3.0% vs. the 2.8% estimate.
Investors' main focus is on Thursday's January Personal Income and Spending report. On a year-over-year basis, economists see increases in the personal consumption expenditures index slowing to 2.4%, down from December's 2.6% growth rate. Economists see core price gains easing to 2.8% from 2.9%.
Bitcoin Tops $60,000 And Boosts Some Related Stocks
Bitcoin continued its rally Wednesday and charged beyond the $60,000 threshold, a level not seen since November 2021. But some crypto-related stocks sold off.
CleanSpark, a bitcoin miner and recent addition to the IBD 50, reversed sharply and fell nearly 13.5%. The stock reached the highest point since November 2021 on Tuesday.
Another cryptocurrency player, Coinbase Global gave back most of its morning gains but closed 0.8% higher. Shares are extended from the 5% buy zone of a deep cup base with a 187.39 buy point.
MicroStrategy, which has a large holding in bitcoin, gapped up for a second straight day in big volume. Its shares are also extended from a deep cup base with a 727.77 buy point. Shares topped 1,000 before retreating.
Big Stock Movers: Baidu Plunges, Chip Stock Jumps
Baidu gapped down 8.1% after the Chinese search engine operator reported higher-than-expected fourth-quarter earnings but lower sales. The stock sank below its 50-day moving average in heavy volume. While that can be deemed a sell signal, the stock was already in a long downtrend. Its relative strength line also sank. Analysts expect full-year 2024 profit to fall 13% after a robust 2023 and to remain flat in 2025.
Baidu stock showed its largest one day decrease since March 9, 2023, when it fell 7.5%, according to Dow Jones Market Data.
IBD 50 stock ACM Research gapped up more than 40% in huge volume after the company crushed its fourth-quarter earnings and revenue estimates. ACM Research develops and makes equipment for the semiconductor industry. Shares rose to the highest price since November 2021 in the stock market today.
EBay gapped up 7.9% in heavy volume after the e-commerce marketplace topped fourth-quarter profit and sales forecasts. EBay stock is in a cup base on a weekly chart with a 49.48 buy point, according to MarketSmith pattern recognition. The stock had its largest one-day percentage increase since Nov. 10, 2022, when it jumped 10%.
Axon Enterprise surged nearly 14% in heavy trading, after the Taser and body camera maker topped fourth-quarter earnings and revenue views. A handful of analysts raised their price targets on the stock. Axon stock was the biggest gainer on the S&P 500 today as shares climbed to a record high.
Dow Jones stock UnitedHealth Group sold off for a third straight day after the U.S. Justice Department launched an antitrust investigation against the giant health insurer. The stock fell deep below its 50-day and 200-day lines, flashing sell signals. The stock was the worst performer on the Dow Wednesday.
Stock Market Today: These Stocks Break Out
Chemed gapped up 5.4% and broke out of a flat base. It is in a buy zone. The company exceeded fourth-quarter earnings expectations while sales came up short of estimates. Shares reached an all-time high on Wednesday. Chemed owns hospice care provider Vitas Healthcare and plumbing and water services company Roto-Rooter.
Vipshop gapped up 12.6%, breaking out of an irregular base with a 19.13 buy point in giant volume. Shares are in a buy zone up to 20.09. The China-based discount online retailer topped fourth-quarter profit and revenue estimates.
AvidXchange soared 4.5% in heavy action, breaking out of a cup-with-handle base with a 12.63 entry. Shares faded back toward the buy point and are in a buy range that stretches to 13.26. The automated bill processing specialist reported a smaller-than-expected loss for the fourth quarter and higher sales than projected.
Stock Market Today: Beyond Meat Surges 30%
Beyond Meat rocketed 30.7% in heavy volume even after the plant-based food maker reported a fourth-quarter loss and declining sales late Tuesday. Investors found hope in its plans to reduce costs and raise prices to improve the bottom line. Beyond Meat stock tried to reclaim its 200-day moving average, but fell short.
Urban Outfitters tumbled 12.8% in heavy trading after the apparel retailer largely missed earnings estimates for its fiscal fourth quarter, but reported sales that were in line with views. It also said it expects its comparable sales to moderate this year.
Shares are extended from a cup-with-handle base with a 37.81 buy point. The stock undercut its 21-day exponential moving average on the stock market today.
TJX Cos. improved from the day's lows and edged up 0.6%. The discount retailer met expectations for its fiscal fourth-quarter profit and beat revenue estimates.
Stocks On The Move: Solar Stocks Show Mixed Results
First Solar climbed 2.9% after reporting fourth-quarter earnings that were higher than expected, but its sales came up short. It also gave a full-year 2024 earnings outlook that topped views. The stock found resistance at its 50-day line.
Array Technologies reversed course and gained nearly 3.4% after the company beat fourth-quarter profit and revenue views but posted its second straight drop in quarterly sales. Array makes solar tracking systems and solar-panel racks. The stock bumped up against its 50-day line, finding resistance in the stock market today.
IBD 50 stock Lemonade plummeted 27.7% in heavy volume after the insurance company reported a smaller-than-expected loss and higher revenue. But it gave first-quarter and full-year 2024 revenue outlooks that fell below analyst projections.
Lemonade shares gave back gains from Tuesday's breakout above a cup base with a 20.59 buy point. The stock fell below its 50-day line, flashing a sell signal. It also triggered the 7% loss rule.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
