Major indexes trimmed some gains but ended sharply higher Wednesday ahead of Fed chief Jerome Powell's speech at the Jackson Hole, Wyo., Economic Symposium Friday. The Dow Jones Industrial Average lagged other indexes with a 0.5% gain at the closing bell.
On Wednesday, the S&P Global Purchasing Managers' Index showed that manufacturing slowed in August, falling to a 47 reading, below consensus views of 48.8. Services also came in lower than forecasts of 52, at 51, according to Econoday.
New home sales rose to 714,000 in July after 697,000 in June and above views of 705,000.
The stock market wasn't bothered by the mixed economic data. Instead, it seemed to focus on a drop in yields. The yield on the benchmark 10-year Treasury note plunged 13 basis points to 4.19%, dropping noticeably after the PMI report came out.
The S&P 500 closed 1.1% higher, while the Nasdaq led with a gain of 1.6%.
Volume was higher on the NYSE but lower on the Nasdaq, according to preliminary data.
The small-cap Russell 2000 also did well, gaining 1% at the close of day. The Innovator IBD 50 ETF rose 1.3%.
Crude oil fell over 1% to $78.65 a barrel.
Dow Jones Stocks
On Wednesday, Nike extended its losing streak to 10 days as the footwear industry group also sold off. Nike has undercut its June and July lows in a bearish sign for the stock.
Apple rose for the fourth consecutive day and is approaching its 50-day line. Shares rose 2.3% Wednesday.
Futures: Booming Nvidia Earnings Lift AI Stocks As Market Rally Eyes This
Stocks Moving Today
FootLocker plunged on earnings. Shares are at lows last seen in October 2010. Revenue declined 10% from the prior year as comparable sales fell and margins also shrank. Earnings fell sharply to 4 cents per share from $1.10 in the year-ago period.
The footwear maker lowered guidance for fiscal 2023 and is pausing its quarterly dividend after the October payout. Shares were down 28% at the closing bell.
Netflix rose 3.5% as the streaming giant got bullish nods from analysts at Oppenheimer, who see high margin revenue drivers in its new ad-supported service and a crackdown on password sharing. Oppenheimer analysts maintained an outperform rating for the stock but jacked up the price target to 515. Shares fell a little short of retaking the 50-day line in the stock market today.
Unsurprisingly, weak demand from communications and consumer electronics companies resulted in a lackluster quarter for Analog Devices. Sales and earnings fell 1% from the prior year.
Free cash flow as a percentage of revenue came in at 27% versus 29% a year ago. Nonetheless, the company returned $1.1 billion to shareholders through buybacks and dividends. For the fourth quarter, the company expects a decline in sales of $2.7 billion with earnings per share of $2. Shares reversed higher and approached the 200-day line.
Subscription growth for Peloton Interactive Connected Fitness segment was more than offset by a seasonal slowdown in hardware sales, a churn in subscriptions, and a bike-seat recall in the quarter ended June 30. The stock fell to an all-time low Wednesday, off 23% in heavy volume.
Among other earnings movers, Kohl's reversed higher and gained 5%. Falling comparable sales drove a decline in second-quarter revenue. But the company reduced inventory and cut costs. The retailer maintained its outlook for the year for a sales decline of 2%-4% and earnings per share of $2.10-$2.70. The stock is forming a cup-with-handle with a 29.65 entry.
Cathie Wood Picks Up Zoom
Beaten-down Zoom Video Communications rose 3.5%. Cathie Wood's Ark Innovation ETF bought 104,898 shares of the video conferencing company. The Ark Next Gen Internet ETF bought 17,933 shares as well. ZM stock is trying to retake the 50-day line but remains depressed.
Several software companies moved after results. Splunk rose in after hours trading after it reported earnings, while Snowflake and NetApp fell following their reports.
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