The Dow Jones edged lower early Wednesday, along with the S&P 500 and Nasdaq. Investors were awaiting Nvidia earnings, with fellow Dow Jones giant Salesforce.com also due after the close.
Stocks on the move include Tesla, which edged lower after racing past an early entry Tuesday. Okta and Box were big earnings movers.
The Dow Jones fell 0.1% Wednesday morning. The S&P 500 gave up 0.1% and the Nasdaq composite lost 0.2%.
The 10-year Treasury yield rose to 4.48% after skidding eight basis points on Tuesday to 4.43%. Crude oil prices rose more than 1% after sinking 1% to $60.89 a barrel in the prior session.
Wednesday's earnings reports from two key Dow Jones stocks — Nvidia and Salesforce — have big stock market implications, especially for the chip, software and artificial intelligence sectors. Among stocks that could be affected include Broadcom, Taiwan Semiconductor and ServiceNow, all around buy points.
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Earnings Movers Diverge
Elsewhere Okta, Heico and Box were earnings movers Wednesday.
Okta stock gapped down below a buy point and its 50-day moving average despite strong first-quarter results and second-quarter forecast. The cybersecurity firm only reaffirmed its full-year outlook and cited macroeconomic uncertainties, with the company's chief executive citing "more cautious" customers.
Heico stock jumped out of a buy zone to a new high after the aerospace and defense firm beat quarterly earnings estimates.
Box stock gapped up on a beat-and-raise report, with the storage firm surging past aggressive entries and topping a traditional 35.45 double-bottom buy point.
Stock Market Loves 'TACO Tuesday'
The Dow Jones Industrial Average popped 1.8% on TACO Tuesday, after President Donald Trump delayed his planned 50% tariffs on European Union goods.
TACO is a joking term circulated in the media that stands for "Trump Always Chickens Out." It refers to the president's initial tough stances on tariffs that eventually soften, thus lifting the markets.
On Tuesday, the S&P 500 index gained 2.05%. The Nasdaq composite and small-cap Russell 2000 rallied 2.5%.
Dow Jones Stocks: Nvidia Earnings Key As Trump Restrictions In Focus
Nvidia's earnings and outlook Wednesday night will be critical for the wide-ranging AI sector and the overall market rally. Investors want to know how much the Trump administration's new AI export curbs will hurt Nvidia. Nvidia has said it'll take a charge of up to $5.5 billion for H20 chips that the U.S. government blocked from selling to China.
Analysts expect the AI chip leader's earnings to rise 20% vs. a year earlier in the April-ended first quarter, but they've slashed views over the past week due to expanded U.S. export curbs. Revenue should swell 66% to $43.34 billion. Investors also want to hear that Blackwell production is now running smoothly.
Nvidia stock lost a fraction early Wednesday. On Tuesday, shares rose 3.2% to 135.50, just below a 137.40 buy point from a weekly handle.
Broadcom stock was flat. Shares climbed 3% Tuesday to 235.65, just topping a 235.28 handle buy point. The custom AI chip maker reports its own quarterly results next week.
Taiwan Semiconductor stock fell slightly, but holding a buy point. Shares gained 3% on Tuesday to 197.68, just topping a 196.22 cup-with-handle buy point. Taiwan Semi makes chips for Nvidia, Broadcom and many more.
Investors should remember that buying these stocks right ahead of earnings is highly risky.
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Dow Jones Stocks: Salesforce Earnings Offers Software Snapshot
Salesforce earnings are due with analysts expecting single-digit growth in earnings per share and revenue. The report comes just after Salesforce reached a deal to buy Informatica for $8 billion.
Salesforce nudged lower early Wednesday after climbing 1.5% to 277.19 on Tuesday, bouncing off the 50-day line. But the Dow Jones component is below its 200-day line and well below its late 2024 peak of 369.
Still, Salesforce's results and outlook could be important for other business software makers.
ServiceNow stock is close to a 1,046 cup-with-handle buy point, flashing an early entry Tuesday as it broke the downtrend of the handle. Shares were little changed early Wednesday.
Tesla Stock Holds Big Gain
Tesla stock edged lower Wednesday. Shares surged 7% on Tuesday to 362.92, topping a 354.99 aggressive entry from a too-low handle. The buy zone runs to 372.74. Shares are soaring even as Tesla sales continue to deteriorate, as investors bet big on the limited Tesla robotaxi launch next month in Austin, Texas.
Tesla stock and Broadcom are on IBD Leaderboard. ServiceNow stock is on SwingTrader. Broadcom stock is on the IBD Big Cap 20.
Please follow Ed Carson on X/Twitter at @IBD_ECarson for stock market updates and more.
