The Dow Jones Industrial Average ventured into positive ground Wednesday as its newest component, artificial intelligence leader Nvidia reported earnings that seemed to disappoint Wall Street. Meanwhile, bitcoin continued to benefit as the digital asset rose to a new high on the stock market today amid the ongoing Trump cryptocurrency rally.
Dow Jones stocks turned it around and finished nearly 140 points higher for a gain of 0.3% by the market close. UnitedHealth Group led Dow gainers while Visa and Amazon.com were among the biggest laggards on the blue-chip index.
The S&P 500 also transitioned into positive ground as it eked out a marginal gain. And the Nasdaq, which was down more than 1% at one point, pared its losses to just 0.1% at the close. All three major indexes tested their 21-day moving averages earlier in the session.
Small caps on the Russell 2000 also retested their 21-day moving average but ended the day down just 0.2%. The growth stock-focused Innovator IBD 50 exchange traded fund traded 0.2% lower on the stock market today.
Volume was lower on both the Nasdaq and the New York Stock Exchange compared with the same time on Tuesday. Decliners outnumbered advancers by roughly 5-4 on both the Nasdaq and NYSE.
The yield on the 10-year Treasury note gained four basis points to 4.42%.
Among Investor's Business Daily's 197 industry groups, telecom-infrastructure lagged while retail-home furnishings gained the most. In the S&P 500, health, energy and materials gained while other sectors saw declines.
Futures: Nvidia Earnings Nearly Double. Is It Enough?
Nvidia Down But Still In Buy Zone
Nvidia managed to pare losses to under 1% at Wednesday's close, but gave back much more after the bell once it reported earnings. The artificial intelligence giant said third-quarter revenue nearly doubled to $35.1 billion, beating views for $33.2 billion. Earnings of 81 cents were 6 cents above estimates from analysts polled by FactSet.
The company also projected revenue for its January quarter at $37.5 billion, ahead of forecasts for $37.1 billion. But "whisper" numbers among Wall Street traders may have been higher. Shares were down more than 3% after the close.
Comments from Chief Executive Jensen Huang are due later. Nvidia stock is on the IBD Leaderboard, IBD SwingTrader and IBD 50. and holds a Composite Rating of 97 and EPS Rating of 99. Its Relative Strength Rating is also an impressive 97. It was in a buy zone just above its 21-day line at Wednesday's close.
Also reporting was Palo Alto Networks, which plunged after hours. The cybersecurity leader reported earnings of $1.56 a share on sales of $2.1 billion. Profits came in ahead of estimates for $1.48 a share but sales were slightly below views. Palo Alto had been in a buy zone from a 380.84 buy point.
Snowflake shares soared after the close after it reported third-quarter sales of $942 million that beat estimates of $899.3 million. Earnings of 20 cents a share were 5 cents above views.
Meanwhile, TJX reversed course and managed a 0.4% gain at the close. The company's third-quarter report topped views, but projections for the current quarter disappointed analysts.
2:02 p.m. ET
Stock Market Today: Bitcoin Clears The $94,000 Mark
Meanwhile, bitcoin cleared the $94,000 mark for the first time ever. Traders are watching cryptocurrencies as a supportive President-elect Donald Trump transitions back to the White House.
Among cryptocurrency stocks, Coinbase dropped more than 3% but MicroStrategy jumped nearly 13%.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
On Wednesday, Federal Reserve Gov. Lisa Cook noted that she saw "the direction of the appropriate policy rate path to be downward." She said the alternatives were between a rate cut pause and a quicker cut, based on "incoming data."
Among individual stocks, retailer Williams-Sonoma was headed for its second-biggest daily gain ever, as it soared more than 25% in afternoon trades. The company reported stronger-than-expected profits for its third quarter despite "a difficult environment."
Williams-Sonoma's biggest one-day jump came on Nov. 24, 2008, when it catapulted 39.7%.
12:24 p.m. ET
Super Micro Gives Back Some Gains
Super Micro Computer fell more than 8%. The artificial intelligence server maker had rocketed 31% higher on Tuesday after filing a plan Monday to avoid delisting. But it gave back a sizable chunk of those gains, and was among the biggest losers on the Nasdaq and S&P 500.
11:04 a.m. ET
Stock Market Today: Target Tumbles
Retailers were on the move as Target took the brunt of investor wrath, plunging more than 21% in recent trades. The discount superstore chain missed third-quarter views on both earnings and sales.
Other retail earnings are due, with BJ's Wholesale and Ross Stores reporting Thursday.
Among tech stocks, artificial intelligence play Keysight Technologies surged after fourth-quarter results beat estimates. The electronics test gear maker offered a sales and earnings outlook for the first quarter that came in above views. Shares cleared the 50-day moving average.
Artificial Intelligence News And AI Stocks To Watch
Magnificent Seven: Google Nears Buy Point
Among Magnificent Seven stocks, Alphabet is approaching a buy point of 182.02 in a cup-with-handle base, according to IBD MarketSurge.
Meta Platforms has formed a flat base that has a buy point of 602.95. Apple is also in a consolidation that has a buy point of 237.49.
Tesla is above a 25% profit zone from a buy point of 264.86. Microsoft is below the 50-day moving average but also within a base that has a buy point at 468.35.
Finally, Amazon is near a buy zone from a 201.20 entry, but lost ground on the stock market today.
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