The stock market deteriorated in afternoon trading on Wednesday, with the major indexes now showing mixed results. Investors analyzed a multitude of earnings reports, including Carvana, ASML and J.B. Hunt Transport Services.
The Nasdaq composite gave back earlier gains and traded down 0.1% in Wednesday afternoon trading. The Dow Jones Industrial Average led the indexes by adding 0.4%, while the S&P 500 edged up 0.2%. Meanwhile, the small-cap Russell 2000 rose 0.2%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF reversed earlier gains to post a 0.2% loss. The Innovator IBD 50 ETF fared worse than the major indexes, dropping 2%.
NYSE and Nasdaq volume rose vs. the same time on Tuesday.
June housing starts of 1.434 million fell short of the 1.48 million consensus, according to Econoday. Meanwhile, permits tallied 1.44 million vs. the expected 1.483 million.
Stock Market Movers: AI Stock Pops Again
Palantir Technologies gave back earlier gains, shedding 0.8% after the company announced a partnership with SpecterOps. The deal will help SpecterOps provide its enterprise-grade defense solution to government agencies through Palantir's FedStart software-as-a-service (SaaS).
PLTR stock is seeing strength from its artificial intelligence focus. The cybersecurity stock hit a 52-week high today.
Shares of Lululemon Athletica advanced 1.3% and broke out of a sideways-trending base, hitting the 389.06 buy point. The athleisure stock is in the 5% buy zone that extends to 408.51.
Lululemon stock hit a 52-week high. The company posted accelerating earnings growth of 54% in its April-ended quarter, on 24% sales growth. Analysts expect 18% EPS growth in fiscal 2024 and 15% in 2025.
Sofi Technologies trimmed bigger gains to add 2%. The fintech stock retreated from the 20% profit zone of a cup base with 8.24 buy point.
Auto Retailer Surges After Earnings
Carvana stock surged over 28% in huge volume, after the company reported higher-than-expected Q2 sales and announced it expects positive adjusted Q3 EBITDA.
The used-car retailer also said it plans to significantly reduce its debt.
Asset management and wealth stock Goldman Sachs added 1.5% after reporting a miss on its Q2 earnings estimates.
Interactive Brokers sank 3.8% after the company missed on both revenue and profit numbers for the second quarter. The online broker cited lower futures contracts and a drop in stock share volume.
IBD 50 stock ASML fell 3.9% despite reporting a beat on Q2 sales and earnings. The semiconductor equipment supplier also gave higher-than-expected third-quarter sales guidance.
Shares retreated below the buy zone of a flat base with a 747.13 buy point.
Oil services stock Halliburton fell 2.9% in heavy volume after reporting a miss on its Q2 sales numbers and a beat on EPS. Shares are down over 5% year to date.
Shares of J.B. Hunt gained 2.3%, even though the company reported lower-than-expected Q2 revenue and profit.
Shares are in a saucer base with a 200.64 buy point.
Market Rally Hits Fresh 2023 Highs; Tesla Earnings Top, Netflix Subs Soar
Other Stock Market Action
Omnicom sold off more than 11% in very heavy volume after reporting a miss on sales and in-line EPS.
Shares of the marketing and advertising stock fell below the 50-day moving average, flashing a sell signal. OMC is the S&P 500's biggest loser today.
IBD Leaderboard stock Tesla and Netflix are slated to report second-quarter earnings Wednesday after the market close.
Joby Aviation stock sank over 17% in heavy volume, after JPMorgan Chase downgraded the all-electric aircraft company to underweight from neutral and increased its price target to 6 from 5.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
