Major stock market indexes pulled back from the highs of the day Wednesday afternoon. The Dow Jones Industrial Average gave up all its gains, as investors weighed employment figures released earlier in the day.
The Nasdaq eased from larger gains, up 0.7% in afternoon stock market action and leading the major indexes. The Dow Jones Industrial Average dipped 0.1% and the S&P 500 rose 0.2%. Volume was lower on both the New York Stock Exchange and Nasdaq compared with Tuesday's trading at the same time of day.
All three major indexes remain well below their 50-day moving averages. The Dow now sits under its 200-day moving average and is testing its psychological 33,000 level.
The Nasdaq is holding above its 200-day line and the 13,000 level, while the S&P 500 resides just above its 200-day line. The small-cap Russell 2000 was nearly unchanged but well off the session lows.
The Invesco QQQ Trust ETF, which tracks the Nasdaq 100, rose 0.7%. The Innovator IBD 50 ETF rose 0.2%.
One factor aiding stocks is the bond market. The benchmark 10-year Treasury yield shed 6 basis points to 4.74%. Still, Treasury yields remain high, giving stocks a run for their money.
Solar Stocks Dim After Downgrades
The slumping solar energy industry — it is almost at the bottom of IBD's industry rankings — saw more selling Wednesday.
Sunrun tumbled over 5% in heavy trading and Sunnova Energy International fell % after Truist downgraded both solar stocks to hold from buy ratings. Both stocks hit 52-week lows Wednesday and trade well below their 50- and 200-day lines.
SolarEdge Technologies stock bounced to a 3.6% gain after hitting a 52-week low this morning. The solar storage and energy management company initially sold off after Truist lowered its price target to 180 from 210 and maintained a buy rating.
Helen of Troy gapped down over 8% in huge volume, even after the consumer goods company reported better-than-expected earnings and sales for its fiscal second quarter. The stock gapped below its 200-day line.
The company now expects most of its sales growth in its fiscal fourth quarter (which ends in February) instead of the current third quarter, as previously guided. Helen of Troy said retailers are shy about placing large orders, which will negatively affect third-quarter sales.
Tesla Stock Gives Early Buy Range
Tesla rallied 4.3% and retook its 50-day line. Shares are in a cup-with-handle base with a 278.98 buy point. The 16% handle is deeper than normal. The EV stock was added to IBD SwingTrader and Leaderboard and aggressive traders could use a buy zone of 254.77-258.40.
Tesla was an S&P 500 big gainer Wednesday.
Palantir Technologies climbed 4.5% in heavy volume on word the company is a top candidate for a contract with the U.K.'s National Health Service. In separate news, the data analytics software company is making progress on its collaboration with consulting giant PwC to expand its artificial intelligence capabilities. Palantir shares are testing resistance at their 50-day line.
Stocks Rally As Yields Retreat; Tesla Races Into Buy Area
Other Stock Market Movers
Cal-Maine Foods gapped down nearly 6% after the egg producer reported late Tuesday that it saw lower-than-expected quarterly sales and earnings for its fiscal first quarter. The stock plunged below its 50-day line. While that can be considered a sell signal, Cal-Maine was already in a long downtrend.
Fluor rose 2.2% in heavy trading after UBS upgraded the construction services stock to buy from a neutral rating. UBS raised its price target to 47 from 35. Fluor shares remain below a 37.20 buy point.
Chipmaker Intel rose 0.2%. The Dow component announced plans to spin off its programmable solutions group over the next two to three years. Shares are still finding support at the 50-day line.
Pharmaceutical company Novartis gapped down 3.5% in heavy volume and is testing the 200-day line. The company's Sandoz Group generic drug business started trading on the Swiss stock exchange Wednesday, and its opening valuation was lower than some analysts expected.
RPM International soared over 5% after the specialty paints and coatings company reported better-than-expected earnings and sales for its fiscal first quarter.
Stock Market Weighs Jobs Data
The September ADP Employment Report showed that private payrolls grew by only 89,000 jobs vs. the 150,000 expected, and was much lower than August's revised growth of 180,000 positions. Most new jobs came from the service industry.
The lower number gives investors hope that a slowing job market could ease interest-rate hikes. But much will depend on Friday's anticipated September jobs report from the U.S. Labor Dept. Estimates also call for 150,000 new jobs in that update.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
