Stocks ended trading mixed Wednesday after a Federal Reserve report showed a slowdown in economic activity and a jobs report indicated there were fewer positions available than expected. Meanwhile, Tesla tested a key level on the stock market today while famed investor Cathie Wood sold Palantir.
After wavering much of the day, the Dow Jones Industrial Average ended the session down 0.2%, or nearly 92 points. Blue chips were once again testing their 200-day moving average. The S&P 500 remained just below a psychologically important level of 6,000 as it narrowly steered clear of negative territory. The benchmark index recorded a marginal gain on Wednesday's stock market.
The Nasdaq outperformed the other major indexes with a 0.3% rise. After an impressive 1.6% jump Tuesday, small caps chose to take a pause Wednesday with the Russell 2000 down 0.2%. But the Innovator IBD 50 exchange traded fund reversed and managed a 0.1% increase.
Volume was lower on both the New York Stock Exchange and the Nasdaq when compared with the same time on Tuesday. Breadth was barely positive on both exchanges, with advancers outnumbering decliners by just three stocks on the NYSE and roughly 6-to-5 on the Nasdaq.
Yields on the benchmark 10-year Treasury note dropped 10 basis points to 4.36% while the price of West Texas intermediate crude oil dropped to near $62.75 a barrel.
Tesla Tests Key Level, Wood Dumps Palantir
Tesla flirted with its 21-day line, though shares were still off more than 3% in recent action. Shares of the electric-vehicle maker were down nearly 5% at one point Wednesday.
Elsewhere, a website that tracks trades in the ARK Invest funds said Cathie Wood sold $6.1 million worth of stock in software titan Palantir Technologies. Shares are holding their 10-day moving average and in a buy zone above an entry at 125.25. But the stock fell more than 2% Wednesday.
Beige Book: Half The Districts See Declines
The Fed's Beige Book was released Wednesday afternoon, and noted that half the nation's districts "reported slight to moderate declines in activity."
The report noted that manufacturing activity declined while consumer spending was mixed, with most districts reporting slight decreases or no change.
"Some districts reported increases in spending on items expected to be affected by tariffs," the report said.
According to Jeff Roach, chief economist at LPL Financial, the report showed that firms were delaying hiring given the tariff uncertainty and that could go either way with more hiring if the air clears or hiring pauses and lower payroll numbers if it does not.
Stock Market Weathers Weak Economic Data; Three Giants Tested
1:50 p.m. ET
Stock Market Today: Three Stocks Break Out
Novartis broke out from a consolidation base at a buy point of 116.91. The company provides drugs and other health care products as well as diagnostic services. Shares were up more than 1% in recent action.
Cintas weekly chart showed that the stock topped a cup base's buy point of 228.12. Cintas makes uniforms and other facilities equipment used by several industries. The stock ticked a fraction higher.
HealthEquity shot past its 101.36 entry after its first quarter earnings report with a 9% gain. Shares have risen after forming an early stage base.
More strength is to be seen in the blue dot on IBD MarketSurge. HealthEquity provides a platform to manage tax-advantaged health care savings.
12:30 p.m. ET
Economic Data Comes In Mixed
In mixed economic news, the Purchasing Manager's Index, or PMI, for May rose to 53 vs. estimates of 52.1, up from 50.6 in April. The Services Index also topped estimates of 52.3, and rose to 53.7, also higher from April's 50.8.
Meanwhile, the Institute of Supply Management's Services Index for May fell to 49.9. The index was expected to rise to 52 from 51.6 in April. The reports came after an ADP jobs report that showed a severe drop in positions available.
According to LPL Financial's Roach, some sectors such as power generation were still showing signs of growth.
"Trade uncertainty is weighing down some sectors like health care, technology, and construction. But it's not all gloom and doom," Roach said in a note to clients. "Retailers and financial services firms reported some signs of growth opportunities despite the tariff variability. Given the wide dispersion in sector outlooks, investors should allocate wisely."
Stock Market Today: CrowdStrike Pares Losses After Earnings
CrowdStrike had rallied into earnings but fell nearly 7% in early trades Wednesday after first-quarter results. Shares pared some losses and were finding support at the 21-day moving average, but started to slip back toward session lows in midday action.
CrowdStrike said earnings fell 8% to 73 cents per share but beat estimates of 66 cents while sales grew 20% to $1.1 billion, meeting views. For the current quarter, the cybersecurity company gave a sales outlook of $1.149 billion at the midpoint and earnings of 83 cents per share. Analysts predicted earnings of 81 cents a share on sales of $1.159 billion.
Hewlett Packard Beats Views
Earnings also moved Hewlett Packard Enterprise. Revenue grew 6% to $7.6 billion in the April-ended quarter while earnings of 38 cents per share declined 10% from the prior year. That earnings figure, however, beat the company's outlook of 31 cents per share.
Hewlett Packard predicted $8.4 billion in sales and earnings of 43 cents per share. Shares jumped more than 7% in premarket action Wednesday before trimming it down to less than 2% midday.
Nvidia Rises, Broadcom Earnings Loom
Dow Jones component Nvidia finished as the biggest company by market cap on Tuesday. Shares of the artificial intelligence leader rose nearly 3% Tuesday after retaking an alternate entry of 137.40. Shares dipped slightly in midday action Wednesday.
Nvidia's AI chip rival, Broadcom, was up nearly 1% Wednesday. It also rose into a buy zone from a 235.88 entry Tuesday as it gained more than 3%. Earnings are due Thursday with its relative strength line at a new high.
10:58 a.m. ET
Stock Market Today: Merck, On Semi Rise; Salesforce, Tesla Fall
In stocks, gainers on the Dow included Merck, Nike and Visa. Johnson & Johnson, Verizon and Salesforce led the downside, but with fractional losses.
Tesla lagged in the S&P 500 with a drop of more than 3% but held the 21-day line while On Semiconductor made a significant leap for both the S&P 500 and the Nasdaq, surging nearly 6%.
9:55 a.m. ET
Apple Rises Despite Downgrade
In stocks, Apple stock rose despite a downgrade from Needham analyst Laura Martin, who was concerned about its valuations amid slowing sales and margins. Martin cut her rating on the iPhone maker to hold from buy and removed her 225 price target.
Apple shares were up 1% in recent action.
8:53 a.m. ET
Stock Market Today: Jobs Report Weaker Than Expected
Automated Data Processing's jobs report showed payroll additions amounted to 37,000 in May. Economists had expected an increase to 110,000 in May from 62,000 in April.
CNBC reported that President Donald Trump renewed his calls for Fed Chair Jerome Powell to reduce interest rates in light of the ADP report. Trump called the Fed chair "Too Late Powell."
"ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE," Trump wrote on Truth Social. Trump added: "He is unbelievable," and noted that Europe has lowered interest rates nine times.
Trump also captured attention with another social media post early Wednesday regarding China. The comments came after a White House official said Monday that Trump was likely to speak with Chinese President Xi Jinping this week.
Trump said: "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!"
8:36 a.m. ET
Key Jobs Report Looms
The Labor Department is expected to release its jobs report Friday. Forecasts call for 129,000 jobs added with the unemployment rate unchanged at 4.2%.
8:17 a.m. ET
Guidewire Soars On Earnings
Guidewire soared after its third-quarter earnings report, also after the market close Tuesday. Sales grew 22% to $293.5 million while earnings per share came in at 88 cents, surging 238% from the prior year. The midpoint sales outlook for the current quarter was $336 million, above estimates of $332 million.
Wells Fargo climbed more than 2% after the Federal Reserve said that it was no longer subject to asset growth restrictions that were imposed in 2018. Shares are in a buy zone.
DollarTree fell after first-quarter results were released early Wednesday. Shares had rallied into a profit zone from a buy point of 79.80. The stock was off more than 2% in premarket action.
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