Major indexes showed a mixed picture in afternoon trading as the Dow Jones Industrial Average slightly doubled its early gains, while other indexes fell on Wednesday in anticipation of Federal Reserve Chairman Jerome Powell’s remarks after the Fed meeting. In the meantime, Nvidia (NVDA) lost favor as other artificial intelligence players lost their profits. And electric car giant Tesla (TSLA) slipped on the stock market today as rivals reported April deliveries.
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Shares of the Dow Jones index rose 0.4% overall as several blue chips rose. But stocks in the other major indexes fell during the day, with the Nasdaq falling 0.3%. The S&P 500 fell 0.2%. All three major indexes are below their 50-day moving averages.
Small caps continued to weaken after sharp losses on Tuesday, with the Russell 2000 down 0.1% recently. The Innovator IBD 50 exchange-traded fund (FFTY) gained less than 0.1%.
Volume was higher today on the New York Stock Exchange but lower on the Nasdaq than at the same time on Tuesday. On both exchanges, ascenders had an advantage over decliners.
The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.65%.
Newly added positions exceed expectations
In business news, Automatic Data Processing reported that the economy added 192,000 jobs in April. Econoday estimates the number was above expectations of 175,000.
The Labor Department’s job openings and labor turnover summary reported little change in March. There were 8.488 million job vacancies on the last business day of March, compared to 8.813 million in February. The reported numbers were below Econoday estimates of 8.7 million.
Additionally, the manufacturing purchasing managers’ index was 50 in April, down from 49.9. Additionally, the Institute for Supply Management’s manufacturing index was 49.2. Economists expected a value of 50.
Traders expect lending rates to remain unchanged as the Federal Reserve’s two-day meeting ends on Wednesday, pushing the likelihood of a long-awaited rate cut to September. The CME FedWatch Tool puts a 37.9% chance that interest rates will be cut by 25 basis points at the Fed’s September meeting. Fed Chairman Powell was scheduled to speak at 2:30 p.m. ET.
Stock market today: Amazon increases its profits
On the Dow Jones Index Amazon (AMZN) trimmed its gains to 2% after a stock market earnings decline today. The result was helped by Amazon’s growing cloud computing and advertising segments.
But Amazon’s sales outlook for the current quarter was slightly lower than expected. According to IBD MarketSurge chart analysis tools, stocks are holding the 50-day moving average.
Amazon was the biggest gainer in the Dow. Other Dow Tech players were mixed Microsoft (MSFT), however, showed some gains Foreclosure (CRM) and Cisco (CSCO) fell.
Super Micro and AMD fall; Nvidia sympathizes
Outside the Dow, Super microcomputer (SMCI) fell 16% after revenue fell short of views, although the artificial intelligence server maker’s profit was higher. modern micro devices (AMD) also fell 9% after its outlook for the current quarter held no surprises.
As a result, Nvidia (NVDA), a holding in both IBD Leaderboard and IBD SwingTrader, fell below its 50-day moving average in sympathy. Shares remain in a consolidation pattern with a buy point at 974.
In the healthcare system, CVS Health (CVS) fell 11% after first-quarter results disappointed investors. A lowered full-year outlook didn’t help either.
Garmin (GRMN) rose from its 50-day moving average on the stock market today after first-quarter results beat estimates. But Wing stop (WING) reversed lower after beating expectations in the first quarter. Garmin and Wingstop are holdings in the IBD 50.
Stock market today: Tesla is falling, as competitors report
Tesla (TSLA) fell as rivals reported mixed deliveries for April. Nio (NOK), Byd (WILL) and Xpeng (XPEV) Shipments increased compared to last year Li car (LI) saw a decline in deliveries. Nio shares rose 12% while Li shares fell. Xpeng reversed higher while Byd added to early gains, rising 1.5%.
Generic (GNRC) gave up early gains and fell 5% after first-quarter revenue came in slightly higher than expected. Generac is also a holding on the IBD Leaderboard.
Qualcomm (QCOM) reports today at the close of trading. Shares are holding the 50-day moving average within a base with a buy point of 175.99.
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