Major indexes gave up early gains in afternoon trades Wednesday as the Dow Jones Industrial Average clung to the plus side. Dow stocks climbed after a report showed further softening in the labor market, but were pared back by the afternoon session.
The S&P 500 hovered around the breakeven mark on the stock market today while the Nasdaq was slightly down. Consumer discretionary, industrials and utilities sectors gained while technology, energy and consumer staples lagged.
Volume was higher on the New York Stock Exchange and the Nasdaq compared with the same time on Tuesday. The small-cap Russell 2000 index trimmed its gains to 0.6%, while the Innovator IBD 50 ETF gave back early gains and traded flat.
Further, the yield on the benchmark 10-year Treasury note fell 5 basis points to 4.11%.
An employment report from payroll processor ADP showed jobs created in November fell below forecasts. Private employers added 103,000 jobs, well below consensus views of 123,000, ADP said. Investors hope that a slowing in the economy will help keep interest rates down.
Meanwhile, the Labor Department is due to release nonfarm payroll data for November on Friday. That report is expected to show 180,000 new jobs in November, with the unemployment rate staying steady at 3.9%.
Dow Jones Stocks: Disney Climbs On Board Drama
Shares of Disney rose more than 1% amid news that a bid from Nelson Peltz to secure a seat on the entertainment giant's board is finding support from activist investor Ancora. Peltz's Trian Fund Management has launched a proxy battle with Disney, a Dow component.
Tech stocks lagged on the Dow, however. Microsoft, Apple and Intel all dipped slightly, though Salesforce rose. Apple hovered near a buy point of 192.93 after reclaiming its crown as a $3 trillion market cap company on Tuesday by closing at 193.42.
Another Dow Jones stock, McDonald's, pared back early losses. The fast-food titan was holding its investor day Wednesday. The company announced plans to have 50,000 stores in operation by 2027 and said it seeks to add up to 250 million members to its loyalty program.
Stocks Moving Today
MongoDB plunged Wednesday after it reported third-quarter results late Tuesday. Sales rose 30% while earnings surged 317% to 96 cents per share.
But the stock fell back below a buy point of 412.67 in a cup with handle. The database platform company gave a fourth-quarter earnings outlook of 45 cents per share, which would equal a 21% drop from 57 cents a year ago.
Elsewhere in workflow management software, Asana plummeted in a test of its 50-day moving average after earnings. Sales decelerated to $166.5 million, though a loss of 4 cents per share was an improvement from a 26-cent loss in the prior year.
Among software security plays, SentinelOne gapped up more than 18%. Revenue grew 42% in the third quarter. A loss of 3 cents per share was an improvement from a 16-cent loss in the prior year.
Elsewhere, Elon Musk's artificial intelligence startup, xAI, filed papers with the Securities and Exchange Commission to raise $1 billion through an equity offering. Also, Google parent Alphabet launched its advanced AI product, Gemini. According to reports, Gemini outperforms ChatGPT 3.5. GOOGL stock is in a cup with handle with a buy point of 139.42.
Futures Mixed; AMD, Google Pop In Day 2 Reaction To AI News
Earnings Moves: Toll Brothers, Ollie's And Box
Outside the Dow Jones index, Toll Brothers said its fiscal fourth-quarter sales and earnings declined. But its first-quarter outlook benefited from falling mortgage rates and lower inflation. Shares gapped up and are extended.
In retail, Ollie's Bargain Outlet gapped up as well and cleared its 50-day moving average after results. But the stock fell back below a buy point in the afternoon. Comparable sales increased 7%. Gross margins improved by 100 basis points as supply-chain costs fell. Shares are approaching a flat base's entry of 80.94.
Slowing third-quarter sales and earnings sent Box hurtling below its 50-day moving average. For its fourth quarter, the cloud-based collaboration tools maker anticipates expenses from migrating to the public cloud. Shares are at risk of undercutting a three-month consolidation.
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