The stock market weakened in the final hour of trading Wednesday and closed at session lows. All the major indexes posted losses, including the small-cap Russell 2000, which was in the black most of the trading day.
While the Nasdaq dropped 0.6%, the Dow Jones Industrial Average lost 0.2%. The S&P 500 fell 0.4% on the stock market today. All three major indexes remained solidly above their 50-day moving averages.
Meanwhile, the Russell 2000 index fell apart in the final hour and shed 0.2%. The Russell continues to hold firmly above its 200-day moving average.
Volume rose on the New York Stock Exchange and fell on the Nasdaq vs. the same time on Tuesday.
The Invesco QQQ Trust, which tracks the Nasdaq 100, retreated 0.6%. The Innovator IBD 50 ETF ceded 0.8%. And the 10-year Treasury yield shed 5 basis points to 4.12%.
Stock Market Movers: Oil Stocks Continue To Slide
Oil stocks including ExxonMobil, BP and Shell sold off as the price of crude oil fell to below $70 per barrel. All three stocks are below their 50-day lines.
Drone and defense stock AeroVironment skidded 10.2% in heavy volume, despite exceeding fiscal second-quarter earnings and sales expectations. The company also gave a full-year fiscal 2024 revenue outlook, but the low end of the company's expected range fell below analyst forecasts. That weighed on shares.
Shopify sank 4.8% after Wedbush downgraded the stock to neutral from outperform but raised its price target to 68 from 66.
SentinelOne gapped up 16.6% and broke out of a skewed cup base with a 21.95 buy point, according to MarketSmith pattern recognition. Shares topped the 5% buy zone, which reached to 23.05.
The cybersecurity stock popped on Wednesday's market after the company reported better-than-expected October quarterly sales and a loss that was smaller than forecast. Management also gave a current quarter revenue outlook that was above analyst projections and raised its fiscal 2024 sales forecast. Its relative strength line reached a 52-week high as shown by the blue dot on IBD MarketSmith charts.
Toll Brothers gapped up 1.9% and now sits above the 5% buy zone of a cup-with-handle base. The homebuilder stock rallied to a 52-week high on Wednesday after it reported higher-than-expected earnings and sales for the fiscal fourth quarter. Despite beating expectations, its profit and revenue fell versus the year-ago quarter.
Homebuilder Lennar rose in sympathy with TOL stock, breaking out of cup-with-handle base and surging above a 131.27 buy point. Another competitor, KB Home, similarly broke out of a cup-with-handle and reached its 54.84 entry. In addition, the SPDR S&P Homebuilders ETF gained 1.2% and hit an all-time high, according to Dow Jones Market Data.
Losses for chipmaker Advanced Micro Devices' accelerated to 1.3% on Wednesday's stock market. The company hosted its Advancing AI event Wednesday.
Futures Mixed; AMD, Google Pop In Day 2 Reaction To AI News
Other Stock Action: Software Stock Plunges
MongoDB gapped down 10.7% and fell out of a buy zone. The database software company reported an overall positive October-quarter earnings report that beat estimates. MongoDB also raised its full-year revenue forecast to $1.65 billion from its $1.6 billion estimate in the previous quarter. But that wasn't enough to please analysts, who had elevated their expectations on the company.
IBD 50 stock Asana plunged in heavy volume and undercut both its 200-day and 50-day lines. Then it rebounded somewhat and found support at the 50-day.
The work management software company reported a smaller-than-expected third-quarter loss and sales that beat estimates. But comments from Chief Financial Officer Tim Wan may have affected the stock. Wan said macro issues continue to affect Asana's net-retention rate, which measures repeat business, according to a Barron's article.
Elsewhere in the stock market, Box sank under its 50-day line and triggered a sell signal. The content management provider missed on its third-quarter earnings and sales estimates.
Lastly, Campbell Soup gapped up 7.1% and led the S&P 500, after the packaged food producer beat first-quarter earnings expectations and reported sales that were in line with views.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
