The Dow Jones Industrial Average led the stock market in late afternoon trades Wednesday as signs of softening inflation supported hopes for a rate cut. Nvidia rose for a third-straight day, while shares of Google parent Alphabet fell on the stock market today after a report of antitrust action.
The Dow rose 0.6% and is back above the 40,000 level. The S&P 500 rose 0.4% and closed near its 50-day moving average after falling below the line earlier this month. The Nasdaq erased losses in the final minutes to post a fractional gain.
The small-cap Russell 2000 fell 0.5% Wednesday, while the Innovator IBD 50 ETF was barely lower.
The yield on the benchmark 10-year Treasury note fell three basis points to 3.82%.
And volume on both the New York Stock Exchange and Nasdaq exchange was lower on the stock market today compared with the same time on Tuesday.
Retail earnings from Target, Urban Outfitters and TJX are due on Wednesday next week. Their charts are weak, with all three trending below the 50-day moving average.
Micron led the Nasdaq 100 with a 3.5% increase, while Tesla was its worst performer, down 3.6%.
Updated 1:46 p.m. ET
Intel Sells Stake In Arm Holdings
In the S&P 500, financials and energy gained while communication services and consumer discretionary sectors lagged. Among Dow stocks, Intel sold its stake in Arm Holdings in the quarter ended June 29, according to a Barron's report.
Fed Chair Jerome Powell will deliver a speech at the Kansas City Fed's annual Jackson Hole Economic Symposium, held in Jackson Hole, Wyo., Aug. 22-24. Investors will be looking for further clues on whether the Fed will cut rates at its September meeting.
But in the more-immediate future for the market is Thursday's reports on jobless claims and retail sales.
Also, August's jobs report will be released on Sept. 6, ahead of the Fed meeting on Sept. 17-18.
Updated 12:29 p.m. ET
Stock Market Today: Breakouts In the Growth 250
Several stocks in the IBD MarketSurge Growth 250 broke out. DaVita broke out of a flat base with a buy point of 147.93. Marex Group rose from a double-bottom base with a buy point of 22.24 while BBB Foods was back in a buy zone from a 26.80 entry.
Meanwhile, Nvidia stock built on two days of gains Wednesday as shares rose 0.7% in recent action. The artificial intelligence giant retook its 21-day exponential moving average on Tuesday with a gain of 6.5%. That came on top of a 4% gain Monday.
Nvidia remained above its 21-day line on the stock market today. Shares are approaching the 50-day moving average.
Updated 11 a.m. ET
Inflation Rate Eases
The Labor Department said Wednesday that the Consumer Price Index showed goods and services met views of a 0.2% increase in July. Annually, they rose 2.9%, while economists expected a 3% hike, according to Econoday.
Traders now are seeing a 41.5% chance of a 50-basis-points rate cut at the Fed's September meeting, according to CME FedWatch Tool.
Also, Alphabet plunged 3% on word the Justice Department is looking at breaking up the search behemoth. Google stock now sits below both its 21-day and 50-day lines.
Dow Jones Stocks
Among stocks on the Dow, Cisco Systems gained 0.8% slightly ahead of its fourth-quarter results, due at the market close.
Walmart is trying to hold support at the 50-day moving average ahead of its results on Thursday, according to IBD MarketSurge. Shares ticked higher in recent action.
Home Depot led the Dow Jones index and made further progress above the 50-day line in the wake of its earnings report on Tuesday. Fellow Dow components Merck and Intel lagged.
Futures Rise As Walmart, Cisco Jump On Earnings
Stock Market Today
Cardinal Health surged over 3% after fourth-quarter results beat estimates. The medical products company also raised its profit outlook for fiscal 2025.
Cardinal shares gapped up above the 200-day moving average which has been a level of resistance since late June. However, its chart continues to have certain bearish features with the shorter term 50-day moving average below the 200-day line.
UBS beat analyst views for both sales and earnings. Shares soared on the stock market today toward a buy zone from a double-bottom base with an entry of 31.45. Earnings of 34 cents per share came in above views of 29 cents while revenue of $11.9 billion also beat estimates of $11.2 billion. This is the second quarter of recovery in earnings for the Swiss bank after two quarters of losses.
Elsewhere, Kellogg spinoff Kellanova soared on news that Mars is buying the company for $36 billion in cash.
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