The stock market indexes weakened in the final hour of afternoon trading, with the major indexes closing near the day's lows. Sports betting stocks duked it out with a clear winner and loser on Wednesday.
All the major indexes posted losses, with the Nasdaq composite closing down 1.2% in stock market action. The Dow Jones Industrial Average fell 0.5% and the S&P 500 slipped 0.7%. The small-cap Russell 2000 lost 0.9%.
The Nasdaq closed a hair below its 50-day moving average. The Dow is trading just above its 21-day-exponential moving average, while the S&P 500 is still below its 21-day line.
Meanwhile, the Nasdaq 100-tracking Invesco QQQ Trust ETF retreated 1.1%. And the Innovator IBD 50 ETF underperformed, off 1.8%.
NYSE volume fell and Nasdaq volume rose vs. the same time on Tuesday, in preliminary numbers.
The benchmark 10-year Treasury yield shed 1 basis point to 4.01%.
The Street expects Thursday's July consumer price index and core prices to rise 0.2%, according to Econoday's consensus. Year-over-year inflation is projected to rise to 3.3% from 3% in June, with core inflation projected to remain at the 4.8% level.
Friday, the stock market gets the July Producer Price Index. That gauge is seen rising 0.2% from June with the year-over-year up 0.7% and core prices climbing 2.3%.
Stock Market Movers: Toast And A Beverage
Celsius Holdings stock gapped up 20.5% in heavy volume after the fitness beverage company handily beat second-quarter earnings and sales numbers late Tuesday. The Leaderboard List stock flew past the convergent point of its 21-day line and 50-day line.
Quarterly earnings grew over 300% for the last two quarters. Sales grew over 100% in Q2 and nearly 100% in the prior quarter.
Toast stock gapped up 14.6% in strong volume, after the company reported higher Q2 sales and lower profits than analysts' forecast. Toast raised it Q3 and full-year 2023 sales guidance.
The stock retook its 50-day line. The company provides a cloud-based digital platform used in restaurants.
Stock Movers: Sports Betting Stocks
Penn Entertainment eased from larger gains, and closed up 9.1%, after the sports betting company reported higher-than-expected Q2 profit and in-line sales. Shares retook the 50-day line but found resistance at the 200-day moving average.
The company announced it will rebrand its Barstool Sportsbook as ESPN Bet and start business in the fall. Penn will buy the exclusive rights to the ESPN trademark, while it cut ties with Barstool Sports.
ESPN majority owner Walt Disney fell 0.7%.
Competitor sports betting stock DraftKings fell 10.9% in heavy volume on the news. The IBD 50 stock sank below its 21-day line but stopped short of its 50-day line. DKNG is on pace for its largest drop since Nov. 4, 2022, when it sank 27.8%, according to Dow Jones Market Data.
Axon Enterprise spiked 14.1% following the company's Q2 earnings and sales beats late Tuesday.
The stun gun maker reported 152% earnings growth on 31% revenue growth. The stock is on pace for its largest increase since June 1, 2020, when it rose 18.2%. It is the S&P 500's biggest gainer today.
Futures: Nasdaq, Nvidia Break Key Level; What To Do
Other Stock Action: Solar Stock Shines
Array Technologies soared 24.1% in heavy trading after blowing past analysts' second-quarter EPS and revenue estimates. Quarterly profit grew 422% on 21% sales growth.
Analysts expect 128% full-year profit growth this year and 43% next year. Shares of the solar storage stock retook the 50- and 200-day lines. The stock also broke out above a trend line that offered an entry around 21.50.
Language-learning app Duolingo popped 6.6% after the firm reported a Q2 surprise profit and higher sales than projected. Duolingo also raised its full-year 2023 revenue guidance.
Shares of Super Micro Computer sank 23.4% in huge volume despite the company reporting higher fiscal Q4 profit and sales than expected. It gave a weak AI sales forecast, according to MarketWatch.
Upstart Holdings tumbled another 34.2% in heavy volume, after the company reported a 40% drop in second-quarter sales and gave Q3 revenue guidance below analysts' estimates.
Shares are well below the 50-day line and flashed a sell signal. The cloud-based AI-powered lending stock has lost 50% in three days.
Nvidia sank 4.7% and fell below its 50-day line, where it tried to seek support but failed. Semiconductor stocks fell in sympathy with Super Micro Computer.
Palantir Technologies skidded 10.5% and posted its sixth straight day of losses. The AI-focused data analytics and cybersecurity stock plunged below its 50-day line, giving a sell signal. The stock had its largest decrease since Nov. 7, when it sold off 11.5%.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
