Buyers returned to the markets Thursday, a day after investors digested colorful commentary from Federal Reserve Chair Jerome Powell, but early gains faded an hour into the trading day. Meanwhile, iPhone titan Apple (AAPL) gained more than 1% on the stock market today ahead of earnings due after the close.
X
The Nasdaq composite initially rallied almost 1%, but the tech-heavy index was up 0.4% in recent action. The S&P 500 was up 0.1% and the Dow Jones Industrial Average added 0.2%.
Wednesday’s Big Picture adds detail on how the stock market reacted to the U.S. central bank’s decision to keep short-term interest rates unchanged. The Fed noted that the bank is showing concern regarding the lack of recent progress on inflation.
However, data from the CME FedWatch survey continues to show the decent possibility of at least one rate cut in the fed funds rate, currently at a range of 5.25%-5.5%, sometime later this year.
Among Magnificent Seven megacaps, Apple is expected to post earnings of $1.50 a share for the March-ended quarter, down 2 cents vs. a year ago, on revenue of $90 billion. The stock continues to work through a new base and has not given a new buy point.
Another Magnificent Seven stock, Meta Platforms (META) slipped another 0.1% on the stock market today after it crashed below the 50-day line last week, a key sell rule.
Market Technicals
Breadth was mildly positive during Wednesday’s market action, even though the major indexes surrendered late-afternoon gains. On Wednesday, the Fed decided to slow down the pace of reducing its still-massive holdings in Treasury and agency debt securities, starting in June.
The yield on the key U.S. government bond rebounded 3 basis points to 4.63%, not far from its 52-week peak of 4.99%.
Also on the stock market today, Carvana (CVNA), a major nationwide player in the used car market, soared on its quarterly results. The company posted earnings of 23 cents a share in the first quarter, a huge turnaround from a net loss of $1.51 a year ago. Wall Street expected a net loss of 79 cents.
Beaten down exercise equipment firm Peloton (PTON) roared higher after its chief executive stepped down and the company announced major staff cuts. But on the downside, Fastly (FSLY) continued to sink badly on quarterly results.
Stock Market Today: Trucking Firm Leads Upside
Elsewhere, the Dow Jones transportation average led the upside, thanks in part to a strong reaction to earnings from C.H. Robinson Worldwide (CHRW). The trucking firm announced first-quarter adjusted earnings of 86 cents a share on revenue of $4.4 billion. The company sees capital expenditures ranging from $85 million to $95 million for the year.
C.H. Robinson gapped up bullishly at the open and sprinted ahead more than 17%. Volume surged more than nine times Robinson’s 50-day moving average. The stock hustled back above the long-term 200-day moving average on the stock market today. Shares are trying to end a long-term downtrend.
Please follow Chung on X/Twitter: @saitochung and @IBD_DChung
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