The Dow Jones Industrial Average reversed sharply from session lows in late trading and was down by just 0.2% at Wednesday's closing bell. Yields surged to 15-year highs, while the U.S. dollar showed further strength. A government shutdown risk also pressured indexes.
The S&P 500 and the Nasdaq also changed course suddenly in late trading in the stock market today. The S&P 500 was flat at 4 p.m. ET Wednesday, while the Nasdaq gained 0.2%.
Volume on the NYSE and Nasdaq was higher compared with the same time on Tuesday.
The small-cap Russell 2000 outperformed, remaining higher throughout the trading day. It ended 1% higher, while the growth stock-oriented Innovator IBD 50 ETF gained nearly 2%.
Crude oil surged nearly 4% to trade at $93.63 a barrel.
The yield on the benchmark 10-year Treasury note scaled higher still, reaching 4.62% — its highest since October 2007 — after adding 6 basis points, while the U.S. dollar strengthened, reaching levels last seen in November 2022. The stock market's "fear gauge," the CBOE Volatility Index VIX, remained elevated.
New orders for factory goods — a leading indicator of production and capital spending — rose 0.2% in August, though they were expected to show a gentler decline of 0.3% after dropping a sharp 5.2% in July. According to Econoday, orders for core capital goods, which reflects business investment, rose 0.9%, after a 0.1% gain in July.
A more comprehensive measure of economic activity will follow with Thursday's Q2 GDP release by the Bureau of Economic Analysis. Friday's personal income and outlays report for August, also by the Bureau of Economic Analysis, is awaited. The Fed's preferred measure of inflation is expected to rise 0.5% from July and 3.5% for the year.
Dow Jones Stocks
Nike continued to fall in a deep downtrend ahead of earnings on Thursday following an analyst downgrade on Monday. Shares were pressured as analysts see softer consumer spending affecting the athletic apparel company's sales.
On Wednesday, energy leader Chevron rose and cleared a 168.96 entry amid tight trading.
Stocks Moving Today
Costco held the bulk of its gains at the market close after a strong earnings report. Sales rose 10% to $79 billion, while earnings per share of $4.86 grew 16% from the prior year quarter. Shares cleared the 50-day line and are approaching a four-weeks-tight entry at 569.22.
Paychex pared some early gains that got the stock above its 200-day line, also after a strong earnings report. The stock gained over 3% on Wednesday.
Tesla fell after analysts at Deutsche Bank lowered the price target for the EV leader to 285, down from 300. The stock also fell due to lowered third-quarter delivery estimates. TSLA stock has slid below its 50-day line in a cup-with-handle base.
Pool equipment maker Hayward Holdings rebounded from its 50-day line in a flat base with a buy point of 15.21 after news that it will join the S&P 600.
Micron stock slipped in after hours trading after fiscal fourth-quarter results. Sales came in at $4.01 billion with a loss per share of $1.31, compared with $6.6 billion in sales with earnings of $1.45 in the prior year quarter. The company expects continuing losses in Q1. The stock has been battered since a China ban in May even as its "AI and memory-centric computing" sales remain a strong tailwind. MU stock had held above its 50-day line in recent trading, but slipped below it in after-hours trading Wednesday.
Energy Stocks In IBD 50 In Focus
Oil plays in the IBD 50 continued to show strength. In the oil and gas field services group, Tidewater, Halliburton and SLB rose. SLB approached a three-weeks tight entry of 62.12. HAL, which leads the group, rebounded from its 50-day line in a cup-with-handle base with a proper entry at 43.42.
Pipeline and transportation stock International Seaways gained and approached a cup-with-handle entry of 48.40 as well, while oil explorer Chord Energy gapped up amid a rebound from the 50-day line.
NOV, the latest addition to IBD Leaderboard rose into a buy zone from a buy point of 20.98.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
