Major stock indexes pared losses by the time the closing bell came Wednesday, but the Nasdaq still slipped just below a critical threshold. Magnificent Seven player Nvidia trimmed the day's losses by half but finished nearly 2% lower as its earnings report was due after the close. Meanwhile, Warren Buffett's Berkshire Hathaway touched a milestone on the stock market today.
The Dow Jones Industrial Average ended the day down 0.4% after closing at a record high during a quiet session on Tuesday. Meanwhile, the S&P 500 dropped 0.6%. Among the S&P sectors, technology and consumer discretionary lagged while health and financial gained.
Stocks on the Nasdaq composite tumbled 1.1% or nearly 200 points. The tech-dominated index undercut its 50-day moving average and stayed below it when the regular trading session ended.
Volume on the both the New York Stock Exchange and the Nasdaq was higher compared with the same time on Tuesday, which was a day of unusually light trading. Decliners beat advancers by roughly 5-to-3 on the NYSE and more than 2-to-1 on the Nasdaq.
The Russell 2000 index slid 0.6% while the Innovator IBD 50 ETF dropped 1.4%.
The yield on the benchmark 10-year Treasury note edged up to 3.84%.
Updated 2:16 p.m. ET
Health Care Stocks Sell Off
Neurocrine Biosciences gapped down below the 50-day moving average after a clinical trial for its schizophrenia treatment gave poorer results than two rival treatments. Avadel Pharmaceuticals also triggered a sell signal by falling below the 50-day and 200-day moving averages.
But insulin device maker, Insulet cleared a trendline entry near 196 and climbed above the 50-day moving average. It is the best-performing stock in the S&P 500 today.
Updated 12:28 p.m. ET
Li Auto Triggers Sell Signal; Nvidia Day Arrives
In stocks, Li Auto plunged below its 50-day moving average on the stock market today and triggered a sell signal after second-quarter results.
With second-quarter results due after the close, Nvidia stumbled more than 2%. Along with spearheading the AI movement, Nvidia stock also is a holding in the IBD 50.
After Nvidia earnings, investors await several releases on the economic front next week. The Purchasing Managers Manufacturing Index for August will be released on Tuesday and July's factory orders next Wednesday.
That will be followed by August's payroll data on Friday, Sept. 6, according to Econoday. The Consumer Price Index for August is due the following Wednesday, Sept. 11, a week ahead of the Federal Reserve meeting on Sept. 18.
Dow Jones Stocks
Among Dow Jones stocks, Salesforce will report its second-quarter results after the close. Shares have faced resistance at the 200-day moving average since June, according to IBD MarketSurge chart analysis tools.
Apple gave up its gains and fell on the stock market today ahead of its Sept. 9 event. Some health care stocks gained.
Stock Market Today: Berkshire Edges Past $1 Trillion
On a five-day winning streak, Warren Buffett's Berkshire Hathaway edged past the $1 trillion market cap mark on Wednesday morning. The market cap includes both the company's pricey A shares along with its B stock. Both classes gained nearly 1% before paring some gains in the afternoon.
Other stocks now in the $1 trillion market cap club include six stocks in the so-called Magnificent Seven: Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta Platforms. Fellow Mag 7 Tesla has crossed the $1 trillion threshold in the past but now sits below that mark.
Updated 11:06 a.m. ET
Retailers Report; Foot Locker Sinks
Retail earnings reports continued on Wednesday with second-quarter results from Foot Locker, Kohl's and Abercrombie & Fitch ahead of the market open. Five Below is set to report at market close.
Foot Locker fell more than 7% from a buy point at 33.24 and triggered a sell signal. Kohl's trimmed its gains to less than 1%. Its downward-sloping, longer-term moving averages show the stock has more work to do before building a sound base. And Abercrombie & Fitch also sold off and fell below the 50-day moving average after its results.
Futures: Nvidia Earnings Fail To Wow; Salesforce, CrowdStrike Rise
Stock Market Today: CrowdStrike, Pure Storage On Tap
Among technology stocks, CrowdStrike and Pure Storage are set to report later Wednesday as well. Elsewhere, among chip stocks, Ambarella held the bulk of its gains after gapping up above its 50-day moving average after earnings late Tuesday.
Super Micro Computer fell further after news that it would delay its annual report. On Tuesday, shares sold off amid reports of possible accounting errors.
Box gapped up and broke out of a cup base with a buy point of 30.30 after it reported earnings on the stock market today.
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