Major indexes weakened in afternoon trading but remained higher, as investors digested Federal Reserve Chair Jerome Powell's comments Wednesday. Afternoon stock movers included New York Community Bancorp, Dexcom and a gold ETF.
Regional bank New York Community Bancorp stock tumbled more than 40% then rebounded to a nearly 7.5% gain Wednesday afternoon.
The stock sold off early on news it is considering a stock sale to raise capital. But the bank reported Wednesday afternoon it is getting a $1 billion lifeline from former Treasury Secretary Steven Mnuchin's investment firm. Shares dipped below 2 a share earlier today and are closed around 3, but down from over 10 in January.
The S&P Gold Shares ETF broke out of a double-bottom base with a 191.36 buy point March 1 in heavy volume, according to MarketSurge pattern recognition. Shares are in a 5% buy zone reaching to 200.93. Soaring gold prices have lifted gold ETFs with a handful of gold ETFs breaking out of bases in March.
Dexcom spiked 9.8% and broke out of a flat base in heavy volume after hitting the 132.03 buy point. Shares are in the buy zone stretching to 138.63. The medical device stock reclaimed its 50-day moving average after three days hovering around the line. The jump came following news that the Food and Drug Administration approved its newest body-worn glucose monitor for people who don't require insulin treatment.
Stock Market Today: Indexes Climb After Powell's Comments
Powell told the House Financial Services Committee it was too soon for interest-rate cuts, but added they are likely "at some point" this year. He indicated there's a sweet spot between cutting rates too soon — and by too much — and waiting too long to ease policy. He said waiting too long could unduly weaken economic activity and employment.
Markets now expect Fed rate cuts to begin in June, with a 57.1% probability, according to the CME FedWatch Tool.
The Nasdaq trimmed gains to nearly 0.6% in Wednesday's action. Meanwhile, the Dow closed with a 0.2% rise, while the S&P 500 added 0.5%. The small-cap Russell 2000 climbed 0.7%.
Volume 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 exchange traded fund trimmed gains and closed the day with a 0.6% gain. The Innovator IBD 50 ETF outperformed the major indexes and surged 1.9% in the stock market today.
The 10-year Treasury yield shed 3 basis points to 4.11% and fell to a one-month low after Powell's remarks. West Texas Intermediate crude oil jumped 1.2% to around $79 a barrel.
Meanwhile, bitcoin's price stood just under $67,000. Crypto-related stocks such as MicroStrategy, Coinbase and Marathon Digital all climbed Wednesday.
Big Stock Movers: JD.com Bolts
Chinese online retailer JD.com gapped up more than 16% following a beat on its fourth-quarter profit and revenue projections and after it announced a stock buyback program up to $3 billion. The stock is on pace for its largest one-day rise since March 16, 2022, when it gained 39.36%, according to Dow Jones Market Data.
Foot Locker plummeted more than 29% in heavy trading even after the footwear retailer topped fourth-quarter profit and revenue estimates. But investors clued in on a fiscal 2024 earnings forecast that came in below projections, in addition to soft sales estimates.
The stock sank more than 28% below its cup base entry and slid deep below its 50-day line, triggering sell signals. Foot Locker stock also undercut its 200-day moving average.
IBD 50 name CrowdStrike gapped up more than 10% in heavy volume after the cybersecurity firm topped its January-ended quarter earnings and sales estimates. It also gave a fiscal 2025 revenue outlook that was above analyst projections.
The jump came following Tuesday's 5.2% drop that tested its 50-day line. The stock is on track for its largest one-day increase since March 20, 2020, when it rose 17.4%, according to Dow Jones Market Data. CrowdStrike reached an all-time high Wednesday.
Futures: AI Play Soars Into Buy Area; Watch Out For This
Stock Market Movers: Palantir Rises On Big Contract
Palantir Technologies jumped nearly 10% after the data analytics software maker announced it won a $178 million U.S. Army contract for Project Titan, a battlefield system using artificial intelligence.
Enterprise software firm Box gained more than 8% after the company beat its fiscal-fourth quarter earnings estimates but slightly missed revenue views. The stock is in a long, undefined base with a 30.94 buy point.
Abercrombie & Fitch sank more than 3% even after the apparel retailer exceeded fourth-quarter earnings and sales expectations. Shares have had an incredible run that started around August 2023.
Dow Jones component Apple dipped 0.6% making it a six-day sell-off.
Meanwhile, Tesla fell more than 2%, adding to its two-day drop.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
