The stock market improved in midday trading to near the highs of the day on Wednesday, following a strong performance on Tuesday. August payroll data showed slowing in the job market, which eased investor concerns. Eyes will be on consumer economic data on Thursday and more jobs numbers Friday.
In addition, markets kept a close eye on Hurricane Idalia moving onshore in Florida.
The Nasdaq held on to 0.6% gain in afternoon stock market action. The Dow Jones Industrial Average rose 0.1%. The S&P 500 gained 0.4%. All three major indexes are above their 50-day moving averages after regaining those lines Tuesday.
The small-cap Russell 2000 added 0.5%.
Volume fell on the NYSE and Nasdaq vs. the same time on Tuesday. Tuesday's strong market breadth was a step in the right direction for the overall market.
The Nasdaq 100-tracking Invesco QQQ Trust ETF edged up 0.5% on Wednesday. And the Innovator IBD 50 ETF rallied 0.6%.
The benchmark 10-year Treasury yield shed 2 basis points to 4.1%.
Economic News Shows Slowing Jobs Market
ADP's National Employment Report showed that private payrolls increased by 177,000 in August vs. the 200,000 expected and much lower than the revised 371,000 in July, according to Econoday. Wage growth also slowed to its lowest level in nearly two years. The lower numbers point to a slowing in the jobs market, which is a factor in the Fed's policy moves. Friday morning we get the August jobs report from the Labor Department.
The Labor Department lowered its revised second-quarter GDP to 2.1% growth from 2.4%, while leaving personal consumption expenditures at an annual 1.7% growth rate.
On Thursday morning we get the closely watched July personal income and spending data, which includes a reading on inflation.
Dow Jones software giant Salesforce reports its second-quarter earnings after the close Wednesday, along with CrowdStrike, Okta and Veeva Systems.
Stock Market Action: Auto Retailer Stock Rallies
Carvana stock spiked 6%, after the used-car retailer announced its same-day delivery for online purchases in the Charlotte, N.C., area.
The MarketSmith Growth 250 stock is on pace for its fourth straight day of gains. The stock is climbing back to its 52-week high hit on July 20, after hitting a low of 6.45 on March 15. The stock has gained a remarkable 940% so far this year.
IBD 50 stock PDD Holdings popped more than 5% in heavy volume after several analysts raised their price targets on stock. Shares are extended from the buy zone of a cup-with-handle base with a 92.79 buy point.
The stock gapped up over 15% on Tuesday after the company reported higher Q2 earnings than expected. PDD Holdings includes e-commerce platform Pinduoduo, discount retail platform Temu and several subsidiaries, including real estate and technology companies.
Brown-Forman gapped down over 5% after the Jack Daniel's maker reported lower fiscal first-quarter profit and sales than analysts projected. The stock fell below its 50-day and 200-day moving averages, triggering a sell signal. The company cited slower whiskey sales and supply issues for the lower sales.
Shares of HP tumbled over 7% in heavy volume after the company reported better-than-expected fiscal third-quarter earnings and sales but gave lower current-quarter and full-year adjusted EPS guidance.
The company said the "external environment" has not improved as expected, causing a weaker outlook. The drop sent shares of the personal computer and printer maker below its 50-day and 200-day lines, triggering a sell signal. The stock is the biggest loser on the S&P 500 today.
Shares of Ambarella cratered over 18% in heavy volume after the specialty chip company reported a beat on sales and a smaller-than-expected Q2 loss but gave third-quarter revenue guidance below analysts' consensus estimate.
The stock fell further below its 200-day line, flashing a sell signal. Ambarella makes processors for computer vision systems and video surveillance cameras. Its products are also used in driver-assisted systems and autonomous vehicles.
Futures: Stocks Extend Gains, Salesforce Jumps Late Ahead Of Key Data
Other Movers: Insulin Device Stock Rallies
Insulet shares jumped over 8% after the company launched its automated insulin system in Germany. It's the largest gainer on the S&P 500 today.
Box gapped down over 9% after the company reported positive second-quarter earnings and sales numbers but gave third-quarter and full-year sales guidance below estimates. The move also sent shares of the cloud content management firm below its 50- and 200-day lines, triggering a sell signal.
Thinly traded MasterCraft Boat sold off over 11% in heavy trading, after the boat maker gave significantly lower fiscal 2024 adjusted EPS guidance than analysts had forecast.
Nvidia climbed 2.1% and is on track for a new closing high.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
