The stock market trimmed losses at midday Wednesday after earnings reports from Microsoft, Texas Instruments and other companies sparked broad selling.
Indexes gapped down at the opening bell but climbed off session lows.
The Nasdaq composite, which was down more than 2%, reduced its loss to 1.1%. It held above the 11,000 level and its 50-day moving average.
The S&P 500 fell 0.8% and is barely hanging on above its 200-day moving average. The Dow Jones Industrial Average dropped 0.6%. The bounce off session lows appears to be a positive sign, building on a trend of closes near session highs over the past few days.
Volume fell on the Nasdaq and rose on the NYSE compared with the same time on Tuesday. Decliners topped advancers by nearly 2-to-1 on the Nasdaq and NYSE.
The Innovator IBD 50 ETF cut its loss in half, down 1% at midday.
Royal Gold topped a 129.32 handle buy point, but volume was below average.
Microsoft Headlines Tech Earnings Reports
Microsoft beat profit estimates late Tuesday, but sales growth was light and the software and cloud computing giant gave a weak outlook. Shares of the Dow component initially fell 3.3%, sinking below the 50-day moving average. But Microsoft was down less than 1% at midday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33720.10 | +90.54 | +0.27 |
| S&P 500 | (0S&P5) | 4013.98 | -5.83 | -0.15 |
| Nasdaq | (0NDQC ) | 11294.89 | -69.52 | -0.61 |
| Russell 2000 | 187.20 | +0.27 | +0.14 | |
| IBD 50 | 22.93 | +0.07 | +0.31 | |
Last Update: 3:52 PM ET 1/25/2023 |
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In other tech earnings this morning, ASML beat Q4 expectations and guided higher for the current period. Despite expected industry improvement in the second half of 2023, management said China export regulations remain a risk. The chip equipment stock reversed higher and is near a 52-week high.
Texas Instruments fell 1.1% in heavy volume even though the chipmaker beat earnings estimates after Wednesday's close. The midpoint of its current-quarter revenue estimate came in below analysts' consensus estimate.
Technology Select Sector SPDR fell 1%, trimming today's loss by more than half.
Utilities are today's worst-performing S&P sector, down 1.7%. NextEra Energy fell nearly 8%, and is on pace for its largest decline since April 2020, according to Dow Jones Market Data. The Florida-based company beat profit views but missed revenue estimates, FactSet data says.
Futures: Tesla Sales Miss After Market Shows This Bullish Trait Again
Boeing, Intuitive Surgical Also Disappoint Stock Market
Also in the Dow Jones industrials, Boeing fell 1.4% after posting a surprise Q4 loss. The aircraft manufacturer cited rising production costs, among other issues. BA shares have climbed more than 20% from a 173.95 buy point, and investors who bought at that breakout could consider taking profits.
Intuitive Surgical sold off 5.5% on a decline in fourth-quarter earnings that also missed analyst estimates. The robotic surgical systems maker was forming a flat base, but the stock undercut that pattern.
General Dynamics gapped down but was well off session lows. The sell-off unfolded even though the defense contractor topped sales and profit views, according to FactSet. The White House was expected to announce that it will provide Ukraine with 50 Abrams M1 tanks, which are made by General Dynamics.
On the upside, Stride soared more than 27%, gapping above its 50-day and 200-day moving averages. Shares remain 9% below new highs. The provider of K-12 education services reported December-quarter earnings that rose 19% and topped analyst views. It also raised guidance for the fiscal year ending in June.
Tesla Earnings After Stock Market Close
News Corp climbed 6.6% after Rupert Murdoch called off a planned combination of the media company with Fox. Fox shares rose more than 2%. News is the parent company of Investor's Business Daily.
Among widely-held stocks, Tesla will announce fourth-quarter results after today's closing bell. Analysts expect a 33% rise in earnings to $1.13 per share and revenue gains of 39% to $24.67 billion. IBM and ServiceNow also report after the close.
