Major stock indexes closed mixed Wednesday as the Dow Jones Industrial Average led the day, the Nasdaq lagged and the S&P 500 dipped lower. Meanwhile, artificial intelligence leader Nvidia trimmed morning losses and retook a key level on the stock market today. Tesla added to recent losses.
Stocks weakened in afternoon trading. The Nasdaq closed lower 0.5%. The Dow added 0.1% and held above the 39,000 level after briefly dipping below it in the final hour. The S&P 500 shed 0.2% after Tuesday's record closing high, while the small-cap Russell 2000 climbed 0.3%.
Volume modestly rose on the New York Stock Exchange and fell on the Nasdaq compared with the same time on Tuesday, in preliminary numbers.
The Invesco QQQ Trust slumped 0.5%. The Innovator IBD 50 ETF bumped up 0.2%.
The March 13 Investors Intelligence U.S. Advisors Sentiment index showed bullish forecasts rising to 60.9% from 59.4% one week prior. The last time bulls felt this positive was July 2021, when the index hit 63.7%, according to Investors Intelligence. High levels of bullish sentiment are considered a warning sign that stocks are getting extended.
Meanwhile, bearish sentiment dropped to 14.5% from the prior week's reading, to the lowest since March 2018, according to the report, further supporting investors' confidence.
The 10-year Treasury yield added 4 basis points to 4.19%. And West Texas intermediate crude oil jumped past $79 a barrel.
The S&P Gold Shares ETF gained back 0.7% after Tuesday's 1.1% drop. The gold ETF is now extended from a double-bottom base with a 191.36 buy point.
Bitcoin's price was over $73,300. MicroStrategy, which owns a large amount of bitcoin, gained 10.9% on the stock market today after Tuesday's 7.4% pop.
Magnificent Seven Stock Action
IBD 50 and Leaderboard stock Nvidia trimmed losses to end the day down 1.1% even after BofA Securities raised its price target to 1,100 from 925 and maintained its buy rating on the chip and AI stock. Shares returned above the 900 price level after falling beneath it Wednesday.
Tesla stock fell 4.5% after Wells Fargo downgraded the electric-vehicle maker to underweight from equal weight and lowered its price target to 125 from 200. The Magnificent Seven stock dropped further below its 50-day and 200-day moving averages. Shares have lost around 31% thus far this year.
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Southern Copper gapped up 10% in heavy volume and broke out of a flat base with a 88.40 buy point. The copper mining stock is extended as it reached an all-time high.
Freeport-McMoRan gapped 7.8% and broke out of a double-bottom base with a 40.99 buy point. The copper mining stock popped as copper prices jumped on news that Chinese smelters will cut production at some facilities. Freeport-McMoRan was the biggest gainer on the S&P 500 Wednesday.
Cava Group slid from an all-time high and sank 0.6% on the day. The Leaderboard watchlist stock is extended from a cup-with-handle base with a 48.69 buy point on the stock market today.
The Mediterranean fast-casual restaurant stock has seen volatile action since its initial public offering on June 15, when it went public at 22 a share. Cava reported better-than-expected fourth-quarter earnings on Feb. 26. Shares have gained around 29% since the report.
Owens Corning broke out of a flat base with a 160.18 buy point and is in the 5% buy zone up to 168.19, according to MarketSurge pattern recognition. The building and industrial materials producer has rallied 16% since late February.
Owens reported higher-than-expected fourth-quarter earnings and sales on Feb. 14. The company is in the construction products group, which ranks No. 8 out of the 197 industry groups covered by Investor's Business Daily.
Advanced Micro Devices fell nearly 4% along with chip leader Nvidia in the stock market today. The semiconductor stock found support at its 21-day exponential moving average. AMD reversed lower from an all-time high on March 8.
Williams-Sonoma Catapults Higher
Williams-Sonoma gapped up nearly 18% in heavy volume after the upscale home furnishings and accessories retailer reported fiscal fourth-quarter profit and revenue that topped views. It also announced it will raise its quarterly dividend by 26% and authorized a $1 billion stock repurchase program.
Dollar Tree gapped down more than 14% in heavy volume after the company reported lower-than-expected adjusted fiscal first-quarter earnings and sales. The discount retailer also gave a fiscal first-quarter profit outlook that was below analyst estimates. Further, it announced the closure of 600 Family Dollar Stores in the first half of its 2024 fiscal year as part of a larger plan to close about 1,000 stores.
Dollar Tree stock sank below its 50-day line and 200-day moving average, flashing a sell signal. Dollar Tree was the worst performer on the S&P 500 today.
Competitor Dollar General fell 1.9% in sympathy with Dollar Tree. It reports its fourth-quarter results Thursday before the market opens.
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GE HealthCare Technologies sank 3.6% after the medical technology company announced a secondary public offering of 14 million shares.
Texas Roadhouse got a 2.6% lift after Baird upgraded the restaurant chain to outperform from neutral and raised its price target to 175 from 160. The SwingTrader stock broke out of a bullish four-weeks-tight pattern with a 152.55 entry.
IBD 50 stock Celsius climbed 5.5%, after Jefferies raised its price target to 105 from 98 and kept its buy rating on the fitness beverage stock. The MarketSurge chart shows a power-from-pivot flag. That indicates shares climbed at least 20% from a buy point in the last 15 days. The movement is noteworthy because it suggests even greater gains ahead.
3M added 5.4% on top of Tuesday's 5% gain and was the biggest gainer in the Dow Jones industrials Wednesday.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
