The Nasdaq led an upward charge for the major indexes at the start of trading Wednesday, with some help from a surging Nvidia (NVDA). Meanwhile, Microsoft‘s (MSFT) earnings report held back the Dow Jones Industrial Average on the stock market today amid resumption of the Federal Open Market Committee meeting.
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The Nasdaq composite surged 2.3% in recent action. The tech-heavy index was climbing back toward its 50-day moving average after falling below the key measure a week ago.
One index that did retake its 50-day line was the S&P 500. The benchmark index was 1.5% higher in recent action.
But the Dow Jones Industrial Average was the laggard Wednesday morning, as it was weighed down by Microsoft. The Dow flirted with losses before rising 0.3%. The small-cap Russell 2000 advanced 0.4% on the stock market today.
Volume was lower on the Nasdaq and higher on the New York Stock Exchange vs. the same time Tuesday.
In the bond market, the 10-year Treasury yield shed three basis points to 4.11%. And U.S. crude oil prices rose to near $76.95 a barrel.
Economic News: Fed Announcement And Employment Report
The July ADP Employment Report came up short of estimates with 122,000 private payrolls vs. the 154,000 expected. The number also trailed June’s 155,000 revised reading.
The Federal Reserve’s second day of meetings gets underway with an announcement due at 2 p.m. ET. Investors will be looking for details on future interest rate policy from a post-meeting statement and Fed Chair Jerome Powell’s media conference.
The CME FedWatch tool has the likelihood of rates holding steady during this week’s meeting at 97%. It then suggests there is an 88% likelihood of a 25-basis-point cut during the September meeting. It also rates a 50-basis-point cut as possible, though with only a 12% chance.
Stock Market Today: Microsoft Falls As Nvidia Surges
Dow Jones component Microsoft pulled back nearly 2% after the tech giant topped fiscal fourth-quarter earnings and sales estimates but reported weak Azure cloud-computing growth. It also gave a current quarter sales forecast that disappointed.
The Magnificent Seven stock remains below its 50-day line but was holding above its 200-day moving average.
IBD Leaderboard stock Nvidia rocketed more than 10% higher after Microsoft talked about increasing its capital expenditures, including artificial intelligence infrastructure. The stock is on track for its largest increase since Feb. 22, when it rose 16.4%, according to Dow Jones Market Data.
Nvidia also may have risen in sympathy with Advanced Micro Devices (AMD), which jumped more than 5% on the stock market today after the company topped second-quarter adjusted profit and revenue projections. Management also provided a third-quarter sales forecast above views. The stock is below its 200-day line and its relative strength line has been on a downtrend since March.
Elsewhere, ASML Holding (ASML) gapped up around 7% on Reuters news the Dutch chip-gear maker was likely to be exempt from the Biden administration’s crackdown on foreign companies that export chips to China. The stock had plummeted after its recent second-quarter earnings report when it offered an outlook on third-quarter revenue that fell below views. The stock remains below its 50-day line.
Stock Movers: Arista Pops
Arista Networks (ANET) surged more than 8% after the computer networking company reported adjusted second-quarter earnings and sales that were higher than expected. It also gave a current quarter revenue outlook above estimates. Arista reclaimed its 50-day line in the process.
Lantheus Holdings (LNTH) lost 6% in recent trades after the medical diagnostics developer missed second-quarter adjusted profit estimates, though sales beat views. But it also lowered its third-quarter profit forecast.
First Solar (FSLR) popped 3% following the company’s higher-than-expected sales and earnings for the second quarter. This follows Tuesday’s 4.3% drop. Shares remain below the 50-day line.
Pinterest (PINS) gapped down more than 13% in huge volume on the stock market today after the idea sharing platform operator topped second-quarter views but gave third-quarter sales estimates below analyst forecasts. Its steep drop below the 200-day line triggered a sell signal.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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