The stock market's major indexes rallied in the final hour to closed mixed, after a choppy day of trading Wednesday. Investors weren't too shaken following Fed Chair Jerome Powell's second day of testimony, as there were no new revelations.
The Dow Jones Industrial Average dipped 0.2%. The S&P 500 rose a modest 0.1%. The Nasdaq composite reclaimed 0.4%. The small-cap Russell 2000 inched up 0.1%.
NYSE and Nasdaq volume was lower than on Tuesday at the same time, in preliminary numbers.
The S&P 500 met resistance at its 50-day moving average, following Tuesday's close below that line. The Dow remains well below its 50-day and 21-day lines. The Nasdaq met resistance at its 21-day line.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF lifted 0.5%. The Innovator IBD 50 ETF outperformed the major indexes with a 0.8% increase.
Crude oil lost 1.4% to $76.49 per barrel. The Energy Select Sector SPDR ETF shed 0.9%. It has met resistance at its 50-day line.
Bitcoin futures added back 0.1% to $22,100. The 10-year U.S. Treasury yield added 1 basis point to 3.98%.
Beige Book Gives Mixed Signals; Powell Offers Nothing New
The New York Fed's Beige Book of compiled data through Feb. 27 noted "overall economic activity increased slightly in early 2023."
Higher-than-expected numbers included payrolls, consumer spending and price pressure. Tourism and was described as "fairly strong," and the lackluster housing market showed signs of life. Meanwhile, manufacturing activity was mostly declining.
Inflation moderated and price pressure was still considered widespread, with some Fed districts experiencing higher input costs.
The overall job market remained "solid," with most areas showing employment growth, despite the challenge to find qualified workers.
In a nutshell, the report backs up Powell's statement that "the U.S. economy has been remarkably resilient to higher rates," giving him more ammunition for a 50-point rate hike this month.
Powell spoke and answered questions for a second day in Congress, this time in front of a House committee. He expressed Tuesday that the size of a potential March rate hike has not been decided. And he reiterated that in Wednesday's testimony.
The buzz is that there will be a 50-basis-point hike at the March meeting, up from the quarter-point hike in the last move. That sent stocks into a tailspin Tuesday.
January job openings fell to 10.84 million, down from 11.012 million in December. The ADP National Employment Report showed 242,000 private-sector jobs added vs. the 200,000 projected. The strength of the labor market is a factor in the Fed's policymaking.
Keep an eye out Thursday at 8:30 a.m. ET for weekly jobless claims numbers for the week ended last Saturday. Consensus sees a rise to 195,000 initial claims, up from 190,000 in the prior week.
Stock Market Movers: Onsemi Gets Price Target Boost
Onsemi, also known as ON Semiconductor, popped 5.6% after BofA Securities raised its price target to 100 from 90, and kept its buy rating on the chip stock. Shares are above a 5% buy zone reaching to 81.25 from the 77.38 buy point. ON stock was the S&P 500's biggest gainer today.
Jack Daniel's producer Brown-Forman gapped down 4.2% following worse-than-expected fiscal Q3 earnings and a beat on sales. EPS dropped 61% over the prior year's quarter.
Stock Market Shakers: Solar Play Tumbles
Shoals Technology gapped down 8.6% in heavy volume after the solar company announced a 24.5 million-share secondary offering of common stock at 24.70 each. The move sent SHLS stock below the offering's price.
The IBD 50 stock is now below its 50-day moving average, a bad sign as SHLS forms a base.
Petroleum and fuel refiner Valero Energy dropped 3.1%, sending it below its 50-day line.
Inspire Medical Systems dropped 1.7%, sending it below its 50-day line and erasing gains from its 262.64 buy point. The medical device company developed an implantable sleep apnea treatment. The stock was removed from IBD Leaderboard today.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
