Major indexes were mixed in afternoon trades as the Dow Jones Industrial Average added slivers to early gains while other indexes fell Wednesday in anticipation of Federal Reserve Chairman Jerome Powell’s post-Fed meeting remarks. Meanwhile, Nvidia (NVDA) fell in sympathy as other artificial intelligence players plunged on earnings. And electric-car giant Tesla (TSLA) slipped on the stock market today as rivals reported April deliveries.
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Stocks on the Dow Jones index collectively climbed 0.4%, as several blue chips gained. But stocks in the other major indexes succumbed as the day progressed with the Nasdaq falling 0.3%. The S&P 500 declined 0.2%. All three major indexes are below their 50-day moving averages.
Small caps continued to weaken after heavy losses Tuesday with the Russell 2000 lower by 0.1% in recent action. The Innovator IBD 50 (FFTY) exchange traded fund gained less than 0.1%.
Volume was higher on the New York Stock Exchange but lower on the Nasdaq on the stock market today compared with the same time on Tuesday. Advancers had an edge over decliners on both exchanges.
The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.65%.
Job Additions Beat Expectations
In economic news, Automatic Data Processing reported the economy added 192,000 jobs in April. That was higher than expectations of 175,000, according to Econoday estimates.
Meanwhile, the Labor Department’s Job Openings and Labor Turnover Summary reported little change in March. There were 8.488 million job openings on the last business day of March vs. 8.813 million in February. The reported numbers were lower than Econoday estimates of 8.7 million.
Also, the Purchasing Managers’ Manufacturing Index for April came in at 50 vs. views of 49.9. Further, the manufacturing index from the Institute for Supply Management came in at 49.2. Economists expected it to be 50.
Traders expect borrowing rates to stay unchanged as the Federal Reserve’s two-day meeting comes to an end Wednesday, with the odds of a long-awaited rate cut pushed out to September. The CME FedWatch Tool sees a 37.9% chance rates will be cut 25 basis points at the Fed’s September gathering. Fed Chair Powell was due to speak at 2:30 p.m. ET.
Stock Market Today: Amazon Up On Earnings
On the Dow Jones index, Amazon (AMZN) trimmed its gains to 2% after an earnings beat on the stock market today. Earnings were helped by Amazon’s growing cloud computing and advertising segments.
But Amazon’s sales outlook for the current quarter came in a tad lower than expected. Shares are holding the 50-day moving average, according to IBD MarketSurge chart analysis tools.
Amazon was the top gainer on the Dow. Other Dow tech players were mixed as Microsoft (MSFT) showed some gains but Salesforce (CRM) and Cisco (CSCO) fell.
Super Micro And AMD Fall; Nvidia Sympathizes
Outside the Dow, Super Micro Computer (SMCI) took a 16% plunge after sales came in lighter than views, though earnings were higher for the maker of artificial intelligence servers. Advanced 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 health care, CVS Health (CVS) dived 11% after first-quarter results disappointed investors. A lowered full-year outlook also did not help.
Garmin (GRMN) gapped up from its 50-day moving average on the stock market today after first-quarter results beat estimates. But Wingstop (WING) reversed lower after beating views for its first quarter. Garmin and Wingstop are holdings in the IBD 50.
Stock Market Today: Tesla Falls As Rivals Report
Tesla (TSLA) fell as rivals reported mixed deliveries for April. Nio (NIO), Byd (BYDDF) and Xpeng (XPEV) deliveries rose from a year ago while Li Auto (LI) saw deliveries decline. Nio stock soared 12% while Li fell. Xpeng reversed higher while Byd added to early gains and rose 1.5%.
Generac (GNRC)gave up early gains and fell 5% after its first-quarter sales came in slightly higher than expected. Generac is also a holding in IBD Leaderboard.
Qualcomm (QCOM) reports at the close on the stock market today. Shares are holding the 50-day moving average within a base with a buy point of 175.99.
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