The Dow Jones Industrial Average saw gains fade away in late afternoon trades Wednesday. The Dow finished 0.2% lower while the S&P 500 also fell 0.3% in the stock market today. The Nasdaq suffered a 0.6% loss at the closing bell. Super Micro Computer crashed after its auditing firm resigned, citing certain risks. Volatility returned to Trump Media & Technology.
The NYSE showed lower volume, as did the Nasdaq, compared with the same time on Tuesday. Advancers took the lead on the NYSE by nearly 5-to-4 but lagged by nearly 3-to-4 on the Nasdaq.
The small-cap Russell 2000 was unchanged in the stock market today. The Innovator IBD 50 ETF lagged the stock market, falling 1.5%.
The yield on the benchmark 10-year Treasury note fell by nearly seven basis points to 4.2% early Wednesday, but it was back at 4.26% at the close.
Microsoft, Meta Report Earnings
Among Magnificent Seven stocks, Microsoft and Meta Platforms reported earnings after the close. Microsoft rose and was just below an entry at 441.85 in after-hours trading. Revenue rose 16% to $65.6 billion while earnings rose 10% to $3.30 per share. Meta reported sales of $40.5 billion and earnings of $6.03 per share. Meta stock fell after hours.
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The internet content group was among the best performers among IBD's 197 industry groups on Wednesday, thanks to hefty gains from Google parent Alphabet and Reddit. Eli Lilly weighed on the Medical-Diversified industry group, which was down 0.5%.
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Super Micro Computer crashed 30% after news that its accounting firm, Ernst & Young, had resigned, stating that it was "no longer be able to rely on management's and the Audit Committee's representations."
Trump Media & Technology erased recent gains and dived nearly 20% as volatility returned and elections grew closer. The stock had gained 194% year to date as of Tuesday's closing price.
In the IBD MarketSurge Growth 250, enterprise software stock Dynatrace broke out of a cup-with-handle base with a buy point of 55.49. Its quarterly results are due Nov. 7.
Waystar Holding also broke out, rising past a buy point of 28.57 to an all-time high in the MarketSurge 250 list.
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Logistics and trucking services provider XPO broke out from a buy point at 126.18 after earnings beat expectations. Shares are extended from the new entry. Earnings also moved Adtalem Global Education, which cleared a buy point of 80.18 in heavy volume. The relative strength line is at a new high, another good sign for the breakout.
Modine Manufacturing and Clean Harbors triggered sell signals after their reports. Both fell below the 50-day moving average in heavy volume. Clean Harbors missed profit estimates, according to FactSet.
Aspen Technology broke out of a flat base's buy point of 240.82 ahead of its earnings report on Monday.
On Wednesday, the ADP National Employment Report showed the economy added 233,000 jobs in October. Economists had expected 115,000, according to Econoday.
Wednesday's GDP release showed that the economy grew 2.8%, less than the expected 3%, during the third quarter. Personal consumption expenditures showed strong spending, up 3.7% vs. views of a 3% increase. September pending home sales soared 7.4% vs. forecasts for a 1% increase.
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Stock Market Today: Dow Jones Stocks
Caterpillar was an early earnings mover in the Dow. Shares fell below the 21-day exponential moving average and are now testing the 50-day line after a disappointing report and lower sales outlook. Sales declined 4% to $16.7 billion while earnings of $5.99 per share fell from the year-ago period.
Visa broke out from a cup-with-handle base's 291.04 buy point after fourth-quarter results were released late Tuesday. Both sales and earnings growth accelerated from the prior quarter to $2.71 earnings per share on sales of $9.6 billion. Visa was a top gainer in the Dow.
Other financial stocks fared well in the Dow, while technology and health care components were mixed.
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Stock Market Today
Magnificent Seven leader Alphabet rose after a strong third-quarter report. Sales grew 15% to $88.3 billion while earnings rose 28% to $2 per share. Ad search revenue was above estimates while the search giant also showed strong traction in generative AI queries. Shares traded 6.6% higher as the stock forms a base that has 191.75 as a buy point, according to IBD MarketSurge.
Nvidia rival Advanced Micro Devices fell more than 9% after its outlook for the current quarter disappointed. Earnings of 92 cents per share were in line with estimates, while sales of $6.82 billion beat views. Shares triggered a sell signal as they fell below the 50-day moving average in high volume.
DaVita plunged 7% and undercut the 50-day moving average after its third-quarter results. According to Whalewisdom.com, the stock is a holding of Warren Buffett's Berkshire Hathaway.
Recent new issue Reddit soared past a profit zone from a cup-with-handle base with a 69.11 buy point after its quarterly report. Sales grew 68% to $348.4 million while earnings of 16 cents per share reversed a year-ago loss.
Fitness device maker Garmin gapped up and broke away from a buy point of 184.42. The company beat estimates with sales of $1.5 billion and earnings of $1.58 per share and raised its outlook for the full year. The relative strength line is at a new high.
Eli Lilly Misses Views
Lower sales of its two weight-loss drugs weighed on Eli Lilly. Third-quarter sales and earnings missed views, coming in at $1.18 per share on $11.44 billion in revenue. Wholesalers worked through inventory during the quarter, according to the company, resulting in lower sales. Shares fell 13% and undercut the 200-day moving average.
Among restaurant stocks, Wingstop had already triggered a sell signal by falling below the 50-day moving average. Shares plummeted 17% Wednesday and undercut the 200-day moving average after earnings missed expectations. Chipotle Mexican Grill fell below the 50-day line after its earnings report late Tuesday.
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