The Dow Jones Industrial Average and other major indexes were mixed on Wednesday, but all remained above key levels even though Fed talk of postponing rate cuts is growing. Meanwhile, Tesla dropped on word of a government probe, while Intel plunged on the stock market today amid reports of a ban on exports of its products to China.
The Dow rose 0.4% on Wednesday, adding a sixth day to its recent winning streak, while the S&P 500 finished flat on the stock market today. The Nasdaq ended 0.2% lower but remained above the psychological level of 16,000. All three indexes remain above their 50-day moving averages, although investors await a follow-through day to offer a perspective on the market's condition.
Volume on the New York Stock Exchange was slightly higher and lower on the Nasdaq compared with the same time on Tuesday. Breadth was poor, with decliners outnumbering advancers on both exchanges.
The small-cap Russell 2000 fell 0.5% after a five-day rally. The Innovator IBD 50 exchange traded fund saw a small increase of 0.1%.
The yield on the benchmark 10-year Treasury note rose 4 basis points to 4.5%, snapping a five-day streak of declines.
Stock Market Today: Fed Rate Worries; Tesla Self-Driving Woes
On Wednesday, Boston Fed President Susan Collins said it would take longer "than previously thought" to bring rates down.
Collins' statement follows similar opinions that the Fed should bide its time on rate cuts by New York Fed President John Williams and Minneapolis Fed President Neel Kashkari earlier this week.
Meanwhile, Tesla fell nearly 2% on a report of a new probe about claims for its electric vehicles' self-driving capabilities. Tesla's Autopilot and Full Self-Driving tools help with steering, braking and changing lanes.
But Reuters reported that the Justice Department is checking if those claims amount to fraud. Shares are back to a test of the 50-day line.
Dow Jones Stocks: Intel Falls
Among stocks on the Dow Jones index, chip giant Intel fell on the stock market today after announcing second-quarter revenue could suffer a dent after the U.S. Department of Commerce pulled back a license to export goods to China. Intel stock skidded 2.2% to close at 30.
Health care and tech stocks were mixed in the Dow industrials. UnitedHealth rose but Merck fell. Microsoft and Salesforce rose. Cisco Systems was a top gainer ahead of its fiscal third-quarter results, due next week.
In the IBD MarketSurge Growth 250, Brink's broke out from a flat base at 93.25 during the session after the company reported first-quarter results. But shares pared some gains and hovered just below the buy point at the close.
Halozyme Therapeutics, which also reported first-quarter earnings, also pared gains after it broke out of a cup with handle with a buy point of 42.64. It sat just below that entry at the close.
Earnings movers included Uber and Shopify as well as recent initial public offerings Reddit and Astera Labs.
Stock Market Today: Shopify, TripAdvisor Among Big Movers
Shares of Shopify plunged 18.6% after the company's outlook for the current quarter disappointed. The stock has fallen below its 50-day and 200-day lines in heavy volume, a sell signal.
Other earnings-fueled sell signals came from the likes of TripAdvisor, which plummeted 28.7% and undercut its base as shares sank below the 200-day line. The stock was briefly halted due to volatility. The travel services firm announced first quarter results and said it no longer is considering a sale of the company.
Further, Qualys sank nearly 10% and gapped below its 50-day and 200-day lines even though first-quarter sales and earnings topped estimates.
Inspire Medical Systems crashed, falling below its main moving averages following its earnings report. The maker of maskless sleep apnea devices lost a third of its value in huge volume.
Reddit Surges, Uber Falls On Results
Reddit jumped 4.1% after revenue beat estimates. The social media platform currently boasts a partnership with Google-parent Alphabet, which is paying for access to its data to train large language models for artificial intelligence applications.
Elsewhere, Uber fell 5.7% on the stock market today after the ride-sharing company reported a loss in its first quarter. Chip designer Astera Labs plunged 9.1% despite beating Wall Street views on earnings.
Affirm initially rose above its 50-day moving average after it reported sales that came in ahead of views. But the stock reversed lower and dropped 9.5% in heavy trading.
In health care, Teva Pharmaceutical jumped 12.8% after the drugmaker maintained its outlook, even though first-quarter results missed views. Shares rebounded from the 50-day line and are at levels last seen in 2019, according to IBD MarketSurge.
Finally, Nvidia trimmed earlier losses to 0.2% on the stock market today. Earnings are due May 22, and shares are in a base with a buy point of 974.
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