The Dow Jones Industrial Average ticked higher in early trades Wednesday as signs of softening inflation supported hopes of rate cuts staying on track. Nvidia (NVDA) pulled back after a two-day rebound, while shares of Google-parent Alphabet (GOOGL) fell on the stock market today amid talk of an antitrust action against the search behemoth.
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The Dow rose 0.2%. On Tuesday, blue chips rebounded from their 50-day moving average amid a follow-through day. Meanwhile, the S&P 500 was flat while the Nasdaq lost 0.3%.
Small caps on the Russell 2000 fell 0.7% early Wednesday while the Innovator IBD 50 (FFTY) exchange traded fund was unchanged in recent action. The yield on the benchmark 10-year Treasury note fell 3 basis points to 3.83%.
And volume on both the New York Stock Exchange and Nasdaq exchange was lower on the stock market today compared with the same time on Tuesday.
Inflation Rate Eases
The Labor Department said Wednesday that the Consumer Price Index showed goods and services met views of a 0.2% increase in July. Annually, they rose 2.9%, while economists expected a 3% hike, according to Econoday.
Traders now are seeing a 41.5% chance of a 50-basis-points rate cut at the Fed’s September meeting, according to CME FedWatch Tool.
Elsewhere, Nvidia stock was on pace to break a two-day winning streak Wednesday as shares dipped 0.7% in recent action. The artificial intelligence giant retook its 21-day exponential moving average on Tuesday with a gain of 6.5%. That came on top of a 4% gain Monday.
Nvidia remained above its 21-day line on the stock market today, but shares are still below the 50-day moving average.
Also, Alphabet plunged nearly 4% on word the Justice Department is looking at breaking up the search behemoth. Google stock now sits below both its 21-day and 50-day lines.
Dow Jones Stocks
Among stocks on the Dow, Cisco Systems (CSCO) dipped slightly ahead of its fourth-quarter results, due at the market close.
Walmart (WMT) is trying to hold support at the 50-day moving average ahead of its results on Thursday, according to IBD MarketSurge. Shares ticked higher in recent action.
Home Depot (HD) led the Dow Jones index and made further progress above the 50-day line in the wake of its earnings report on Tuesday. Fellow Dow components Merck (MRK) and Intel (INTC) lagged.
Stock Market Today
Cardinal Health (CAH) surged more than 4% after fourth-quarter results beat estimates. The medical products company also raised its profit outlook for fiscal 2025.
Cardinal shares gapped up above the 200-day moving average which has been a level of resistance since late June. However, its chart continues to have certain bearish features with the shorter term 50-day moving average below the 200-day line.
UBS (UBS) beat analyst views for both sales and earnings. Shares soared on the stock market today toward a buy zone from a double-bottom base with an entry of 31.45. Earnings of 34 cents per share came in above views of 29 cents while revenue of $11.9 billion also beat estimates of $11.2 billion. This is the second quarter of recovery in earnings for the Swiss bank after two quarters of losses.
Elsewhere, Kellogg (KLG) spin-off Kellanova (K) soared on news that Mars is buying the company for $36 billion in cash.
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