The Dow Jones Industrial Average ended a seven-day winning streak Wednesday, while other major indexes managed to eke out a fractional gain. Meanwhile, entertainment giant Disney climbed after reporting earnings, and a favorite stock of Cathie Wood took off on its results.
The Dow was off 0.1% at the closing bell while the S&P 500 and the Nasdaq hovered just above the break-even point amid light economic data.
Volume on the New York Stock Exchange fell but the Nasdaq saw more trades compared with Tuesday.
Also, the small-cap Russell 2000 index underperformed and fell 1.1% in the stock market today. The Innovator IBD 50 ETF fared better with a 0.1% decline.
And the yield on the benchmark 10-year Treasury note fell 4 basis points to 4.52%.
Dow Jones Stocks
Disney edged down during the regular session Wednesday, but climbed after hours after its fiscal fourth-quarter earnings beat views but sales were slightly short of the mark. Revenue came in at $21.2 billion while earnings per share of 82 cents increased from 30 cents a year ago.
Analysts had expected earnings of 71 cents a share on sales of $21.4 billion, according to FactSet. A Dow component, Disney recently cleared its 50-day moving average.
Among other Dow Jones stocks, Microsoft continued to make progress toward a buy point of 366.78. Apple also is on the rise after clearing the 50-day line.
Teva Surges And Gilead Tumbles
Generic drugmaker Teva rose and retook its 50-day moving average after a beat-and-raise quarter. The company is also planning on separating its active pharmaceuticals ingredients business. Shares pared some gains in late trading but continue to hover near that key level.
Also in health care. sellers hit Gilead after the company raised its outlook based on a bullish view for its Covid drug Veklury. But projections didn't account for unpredictable Covid hospitalizations that fluctuate with infection rates. Shares sliced through the 50-day line on Wednesday, but retook the threshold in late trading. The stock was 3% lower.
Fintech stock Shift4 Payments got a boost after the company announced that it may be bought and taken private. The stock has soared past its 50-day moving average.
Elsewhere in payments, Flywire gapped down below a converged 50- and 200-day moving average after earnings. The company's fourth-quarter sales outlook of $94 million at the midpoint indicates a slight deceleration. Further, the company attributed $1 million in sales to a one-time gain from its StudyLink acquisition.
Cathie Wood Stock Soars On Earnings
Elsewhere, Roblox soared more than 10% on its earnings report. The metaverse play is held by all three of Cathie Wood's Ark Invest ETFs — Ark Fintech Innovation ETF, ARK Next-Gen Internet ETF and Ark Innovation ETF. Shares gapped up above the 200-day moving average and held the bulk of gains in the afternoon.
In oil and gas, Warren Buffett's top holding Occidental Petroleum rose but shed some gains after a strong third quarter. The company raised its production outlook for the full year. Shares are reclaiming the 200-day line.
Outside Dow Jones, Akamai rose after topping Wall Street estimates as the enterprise software maker shifts to a product mix with higher margins. Shares are in a buy zone from a 107.47 entry.
Axon surged past a buy zone from a 217.61 entry after earnings. For the fourth quarter, the taser maker expects sales of $418.5 million at the midpoint, with full-year sales hitting $1.55 billion.
Also, a recent new issue in the restaurant group, Cava, set off a sell signal and fell below the 50-day line on earnings. And a recent initial public offering, chip stock Arm is set to report after market close. Shares were down more than 1%.
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