The Dow Jones Industrial Average reversed higher in the last hour of trading Wednesday and ended with a 0.4% gain. The S&P 500 tacked on 0.8%, while the Nasdaq led with a 1.4% jump in the stock market today. Oil fell steeply.
On Tuesday, the S&P undercut last week's low, ending its rally attempt. A follow-through day on the Nasdaq remains a possibility.
Volume on the NYSE and on the Nasdaq fell compared with the same time on Tuesday, according to preliminary data.
The small-cap Russell 2000 underperformed and closed 0.1% higher. The Innovator IBD 50 ETF rose 0.4%.
Crude oil fell 5% to $84.71 a barrel even as OPEC indicated it will continue production cuts until December. Late Tuesday, the EIA reported increasing gasoline inventories. The Energy Select Sector SPDR ETF fell to its 200-day line, down 3.3%. The U.S. Oil Fund fell to its 50-day line with a 5.4% drop, while Invesco DB Commodity also tested the 200-day line as the ETF lost 2.8%.
The yield on the benchmark 10-year Treasury note eased, falling 6 basis points to 4.73%, which gave some help to equities.
Softer jobs data from the ADP report showed payroll growth of 89,000 in September, well below Wall Street estimates of 150,000 and August's 177,000, according to Econoday. The Bureau of Labor Statistics jobs report for September is due Friday morning.
Dow Jones Stocks
Intel added 0.7% to Tuesday's gains after news that the chip bellwether plans to spin off one of its divisions, the Programmable Solutions Group. Intel acquired the division when it bought Altera in 2015. The chip leader also plans an IPO for the spinoff in a few years. Dow Jones stock INTC is holding the 50-day line but is below a flat base's 37.19 entry. Intel plans to hold its third-quarter conference call on Oct. 26.
Analysts at KeyBanc downgraded Apple, citing concerns over iPhone sales, and removed a price target of 200. The stock now has a sector weight rating, down from overweight. AAPL stock reversed higher 0.7% but remains below the 50-day line.
Futures: Stocks Rally As Yields Retreat; Tesla Races Into Buy Area
Stocks Moving Today
Tesla gained nearly 6% as the stock shakes off news of disappointing deliveries. Shares are in a cup with handle with a 278.98 entry. TSLA was one of the best-performing megacaps in today's market, and was the best performer in the S&P 500 today.
Egg producer Cal-Maine fell 7.3% after results disappointed, and the stock gapped below its 50-day line. Both sales and earnings declined from the prior-year quarter as supply recovered and prices of eggs normalized from fiscal 2023 highs.
In the heavy construction group, Fluor rose more than 2% after rebounding from the 50-day line. The stock has fallen below a buy point of 37.20. UBS analysts upgraded FLR to buy from neutral with a price target of 47, up from 35. Another stock in the highly ranked group that is worth watching is Jacobs, which is in a flat base with a buy point of 137.61.
Analysts at Truist see higher interest rates weighing on the outlook for solar stocks Sunrun and Sunnova Energy and downgraded both to hold. Both stocks are below their 50-day lines. RUN trimmed most losses while NOVA reversed and ended 2.2% higher.
Zscaler, Palo Alto Among Stocks Holding Up
Zscaler, which is on IBD Leaderboard, is among the enterprise software stocks that are holding the 50-day moving average for now. Palo Alto Networks is also holding its 50-day line with a buy point of 258.88. The buy point is also the stock's all-time high. IBD 50 stock Duolingo is at a proper buy point of 162.20.
In the managed health care group, Accolade fell nearly 9% in extended trading. The company reported a loss of 43 cents a share after the close. Shares were already in a deep downtrend.
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