Major indexes appeared ensconced above key levels in early trades Wednesday even as investors await a follow-through day. The Dow Jones Industrial Average rose 0.2%, while the S&P 500 edged higher in the stock market today. The Nasdaq traded slightly lower but remained above the psychological level of 16,000.
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All three indexes also remained clear of their 50-day moving averages. Tesla (TSLA) was among the worst performers in the Nasdaq 100, while Intel (INTC) fell on a new China ban. And Nvidia (NVDA) rose ahead of its earnings, due in two weeks.
Volume on the NYSE and the Nasdaq fell compared with the same time on Tuesday. Breadth was poor, with decliners outnumbering advancers on both exchanges by 2-to-1.
The small-cap Russell 2000 reversed sharply lower after a five-day rally and fell 0.7%. The Innovator IBD 50 ETF (FFTY) saw a smaller decline of 0.4%.
The yield on the benchmark 10-year Treasury note rose 5 basis points to 4.48% — on track to snap a five-day streak of declines.
Meanwhile, Tesla fell on a report of a new probe about claims for its electric vehicles’ self-driving capabilities. Tesla’s Autopilot and Full Self-Driving tools help with steering, braking and changing lanes. But Reuters reported that the Justice Department is checking if those claims amount to fraud. Shares are back at the 50-day line.
Dow Jones Stocks: Intel Falls
Intel (INTC) fell after the chipmaker announced that second-quarter revenue could suffer a dent after the Department of Commerce pulled back a China export license.
Health care stocks did well. UnitedHealth (UNH), Merck (MRK) and Amgen (AMGN) rose. Cisco (CSCO) was a top gainer ahead of its third-quarter results next week.
In the IBD MarketSurge Growth 250, Brink’s (BCO) broke out from a flat base at 93.25 after the company reported first-quarter results. Halozyme Therapeutics (HALO), which also reported Q1 earnings, broke out of a cup with handle with a buy point of 42.64.
Earnings movers include Uber (UBER) and Shopify (SHOP) as well as more-recent IPOs Reddit (RDDT) and Astera Labs (ALAB).
Shopify, Reddit Among Big Movers
Shares of Shopify dived 20% after the company’s outlook for the current quarter disappointed. The stock has fallen below its 50-day and 200-day lines in heavy volume.
Reddit jumped 5% after revenue beat estimates. Uber fell more than 7% after the ride-sharing company reported a loss in its first quarter. Chip designer Astera Labs trimmed its loss to 5%.
Affirm (AFRM) initially rose above its 50-day moving average after sales were higher than views. But the stock reversed lower and was down nearly 7% in heavy trading.
In health care, Teva Pharmaceutical (TEVA) jumped 13% after it maintained its outlook, even though first-quarter results missed views. Shares rebounded from the 50-day line and are at levels last seen in 2019, according to IBD MarketSurge.
Nvidia rose 0.4%. Earnings are due on May 22 and shares are in a base with a buy point of 974.
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