The major stock market indexes flashed green, trading higher into midday Wednesday and off the lows of the day. The Dow Jones Industrial Average attracted the strongest bid once again, gaining 0.5%. Investors now await the 2pm Fed minutes of the September meeting.
The Nasdaq composite added 0.3%, the S&P 500 gained 0.4% and the Russell 2000 small-cap index shed 0.2%. The Big Tech Nasdaq 100-tracking Invesco QQQ Trust rebounded 0.5%.
Volume on the NYSE and the Nasdaq was lower versus the same time on Tuesday.
Crude oil dropped 3% to $86.61 per barrel. The SPDR Select Energy ETF (XLE) edged up 0.4%.
The 10-year Treasury note yield slid to 3.92%. Bitcoin rebounded 1.1% to $19,100.
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As of Wednesday morning, 86% expected the Fed to raise rates by 75 basis points at its Nov. 2 meeting, while 14% looked for a 50-basis-point hike, according to the CME FedWatch Tool.
European markets lost ground, with the German DAX stock index down 0.4%, Paris CAC 40 0.3% and London FTSE 100 0.9% to finish the trading day.
Monthly PPI Higher Than Expected, Look To Thursday For CPI
The September Producer Price Index (PPI) posted a 0.4% month-over-month increase, higher than the 0.2% consensus. PPI excluding food and energy rose 0.3%, in line with expectations.
The 8.5% year-over-year change exceeded the 8.4% consensus but was lower than August's 8.7%. Annual PPI fell to 7.2% excluding food and energy, compared to 8.1% in the prior report.
September CPI will be released Thursday at 8:30 AM ET, with consensus for a 0.2% increase. Analysts expect core CPI is rise by 0.5%.
MBA Mortgage Applications Composite Index for the week ended Oct. 7 fell by 2.0%. The Purchase Index declined 2.1% while the Refinance Index dipped 1.8%.
The downtrend is likely to continue, with the national average for the 30-year fixed mortgage lifting to 7.08%, up 25 basis points since last week, according to bankrate.com.
Investors Avoid This Mistake Ahead Of CPI Inflation Report
Stock Market Today: Education Stock Breaks Out
Education provider Stride rose 2.3% on light volume, and broke out of a cup base hitting the 45.03 buy point on the MarketSmith Chart. The stock hit a new high on its relative strength line, as indicated by the blue dot on the chart.
The company is ranked second in the Consumer Services Education group, which is 47th of The 197 IBD groups. It earned a highest-possible 99 EPS Rating and a 97 Composite Rating. The stock was featured in IBD's Stocks Near A Buy Zone column.
Pepsi jumped 4.4% after reporting a beat on Q3 EPS and sales. It also raised full-year organic growth projections to 12% from the 10% forecast in July.
Shares are in a flat base with a buy point of 181.17. The stock has found resistance at its 21-day exponential moving average.
Pepsi holds a 87 Composite Rating and an unimpressive 74 EPS Rating. However, the company pays an attractive 2.8% annual dividend yield to shareholders.
S&P 500 leader Moderna rose 11.4% after Dow component Merck said it would partner with the vaccine manufacturer to develop and market a personalized cancer vaccine.
IBD 50 stock Merck pulled back after morning gains, down 0.1% the news.
Merck hit a new high on its relative strength line, as indicated by the blue dot on the MarketSmith chart. The company also holds the top spot in the Medical-Ethical Drug group, ranked 122nd out of the 197 IBD groups. The drug giant pays a hefty 3.0% dividend yield.
El Pollo Loco popped 15.9% after its board declared a special $1.50 dividend and approved a new repurchase program, with authorization to buy up to $20 million in shares.
Albemarle tanked 6.8% on heavy volume and is in the 7%-8% sell zone of a cup-with-handle base with a buy point of 273.78. The stock is today's S&P biggest loser.
Cameco plunged 14.9% after partnering with Brookfield Renewable to acquire Westinghouse Electric, in a deal with a total enterprise value of $7.875 billion. Brookfield dropped 2.3% on the news.
IBD 50: Winners And Losers
The Innovator IBD 50 ETF (FFTY) was unchanged, lagging the major stock market indexes.
Cybersecurity company KnowBe4 gapped up 12.8% in Wednesday's stock market after announcing that it has entered into an agreement to be acquired by Vista Equity Partners in an all-cash transaction
Digital advertising provider Perion Networks gained 1.9% on heavy volume. The company holds a 96 EPS rating, an 88 Composite Rating and a 91 Relative Strength Rating.
Petroleum refiner Delek US sank 4.3%, trading below its 21-day exponential moving average.
