The stock market wavered at midday as investors awaited new signs from the Fed on its inflation-fighting strategy, while today's economic data wasn't exactly robust.
The Nasdaq composite climbed as much as 1% but pared its gain to 0.6% at midday. The S&P 500 was up 0.2% after ceding some gains. The Dow Jones Industrial Average was nearly flat. Small caps outperformed, with the Russell 2000 up 0.8%.
Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday. Breadth was bullish. Advancing stocks topped decliners by a 7-to-2 ratio on the NYSE and by 2-to-1 on the Nasdaq.
Consumer discretionary was the best-performing S&P sector, up 2.5%. The Energy Select Sector SPDR ETF rose 1.1% to a 52-week high. The price of U.S. crude oil eased 0.2% to $109.62 a barrel.
The Innovator IBD 50 ETF, a bellwether for growth stocks, outperformed the stock market, climbing 1.4%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31907.32 | -21.30 | -0.07 |
| S&P 500 | (0S&P5) | 3949.15 | +7.67 | +0.19 |
| Nasdaq | (0NDQC ) | 11323.86 | +59.41 | +0.53 |
| Russell 2000 | 177.00 | +1.43 | +0.81 | |
| IBD 50 | 30.77 | +0.43 | +1.42 | |
Last Update: 11:42 AM ET 5/25/2022 |
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Comstock Resources led the IBD 50 with a 6.4% gain as the oil and gas producer aims for new highs. World Wrestling Entertainment is nearing a 63.81 buy point, and still a stock to watch if the market improves.
Stock Market Waits For Fed Minutes
At 2 p.m. ET, the Federal Reserve will release minutes of its policy meeting earlier this month. The central bank has set on course a series of increases in the fed funds rate, while reducing its balance sheet. Investors seem convinced another 50-basis point rate hike is coming and will be watching whether an even more aggressive 75-basis-point increase is possible.
Earlier today, the April durable goods orders report said orders rose 0.4%, and 0.3% excluding transportation, modestly below the Econoday consensus estimates. Core capital goods orders rose 0.3%, also a bit below views.
BMO Capital Markets economist Priscilla Thiagamoorthy said the report suggests the still-healthy demand for equipment and merchandise will last more than three years. "Looking ahead, however, momentum is likely to slow amid the Fed's series of aggressive rate hikes," she noted.
The yield on the benchmark 10-year Treasury note was nearly unchanged at 2.74%.
There are more earnings reports today in the stock market, and they are mixed, with some surprising moves to the upside midday.
Dick's Sporting Goods Cuts Outlook
Dick's Sporting Goods made an impressive reversal, transforming a loss of 12% to a gain of 10% at midday. The retailer slashed its full-year profit forecast. CEO Lauren Hobart said the company is confident about facing "uncertain macroeconomic conditions." Dick's expects earnings of $7.95 to $10.15 a share in the fiscal year ending next January. That's well below the $12.57 consensus FactSet estimate.
The stock had tumbled to the lowest price since February 2021, but could finally be bottoming.
Nordstrom rose 8.5% at midday following its earnings report late Tuesday. The upscale department store gave a mixed April-quarter report and raised its full-year guidance.
A major tech earnings report comes out after today's close when Nvidia announces quarterly results. Analysts expect the chip designer to report earnings increased 42% to $1.30. Sales are expected to rise 43.5% to $8.123 billion, according to FactSet.
The stock has wiped away practically all gains from the past 12 months, and is still trying to find a bottom. It traded 2.2% higher at midday.
Wendy's jumped 10% in huge volume on news of a possible buyout. Trian Fund Management, the fast-food chain's largest shareholder, is considering a takeover bid. Trian is headed by billionaire Nelson Peltz.
The stock market is working on a mild rebound but remains in a correction. Investors should continue to avoid buying shares, but need to be preparing with stock ideas.
