Major indexes were mixed Wednesday as Facebook-parent Meta Platforms plunged on its earnings report. Meanwhile, Tesla soared on plans for a thriftier car model but Nvidia and Super Micro Computer surrendered early gains. And Trump Media & Technology jumped on the stock market today after the company accused short sellers of manipulating its stock.
Amid lighter trading volume, a follow-through day for the market seems to be on track in the wake of Monday's gains, and could happen as early as Thursday. The Dow Jones Industrial Average finished 0.1% lower while the S&P 500 was virtually flat on the stock market today. The Nasdaq composite gave back some earlier gains but still managed to finish 0.1% ahead on Wednesday.
Volume was lower on both the New York Stock Exchange and Nasdaq exchange compared with the same time on Tuesday. Breadth was discouraging, with decliners outnumbering advancers by 2-to-1 on the NYSE and 5-to-3 on the Nasdaq.
After three solid days of gains, the small-cap Russell 2000 fell 0.5%. The Innovator IBD 50 exchange traded fund also gave up most of its robust early gains and was higher by just 0.1% at the close.
The yield on the benchmark 10-year Treasury note rose five basis points to 4.65%. Bitcoin slipped to the $64,000 level after its fourth halving.
On the economic front, new orders for durable goods came in higher than expectations in March, up 2.6%. Economists had expected orders to rise 2.3%.
Dow Jones On Stock Market Today
Boeing's first-quarter revenue of $16.6 billion fell 8% from the prior year, while a loss of $1.13 per share beat estimates for a loss of $1.63. But Boeing quickly erased early, hefty gains and fell nearly 3% on Wednesday.
IBM has formed a flat base, though a buy point of 199.18 is a ways off.
Among other stocks on the Dow Jones index, American Express is in a buy zone above an alternative buy point of 231.69. It is featured in stocks near a buy zone. But keep in mind that market risk is higher than normal right now.
Visa gapped up to its 50-day moving average after second-quarter results were announced late Tuesday. The stock broke above a trendline entry around 275, although it has trimmed gains.
Stocks On The Move
Tesla held the bulk of its early gains on the stock market today and finished 12.1% higher after first-quarter results came in below views late Tuesday. It reported the company's lowest per-share earnings figure since the first quarter of 2021.
But shares rose after the electric-vehicle giant signaled that a "more affordable car" could be ready later this year. The company also set Aug. 8 for the unveiling of its robotaxi.
Chief Executive Elon Musk said that the robotaxi may be the way for the company to bridge autonomous-driving technology and the mass market. That would also indicate that Tesla may enter new markets, including ride-sharing.
Meta Platforms plunged nearly 13%, falling below its 50-day moving average, as the social media titan reported earnings after the market close. Sales of $36.5 billion came in higher than estimates for $36.1 billion, but earnings of $4.71 per share were below views for $4.97.
Meta expects second-quarter revenue in the range of $36.5 billion to $39 billion with $37.75 billion as the midpoint. Analysts had predicted $38.3 billion. The company is a holding on the IBD Leaderboard and also in the IBD MarketSurge Growth 250.
Elsewhere, Trump Media surged 9.5% after its latest SEC filing cited concerns over "potential manipulation" of the stock by short sellers. Chief Executive Devin Nunes leveled the accusations in the filing, but one of the alleged participants denied the charge. Further, one financial analytics firm says only tiny volumes of short sales happened when Trump shares experienced sharp downfalls, according to MarketWatch.
Trump Media, the parent of former President Donald Trump's Truth Social network, has lost more than half its value since going public via merger with a special-purpose acquisition corporation in late March.
Futures Fall As Meta Dives On Guidance; Chipotle Eyes Buy Point
Mixed Action Among AI Stocks
Among artificial intelligence plays, IBD Live Watchlist stock Vertiv rose on the stock market today after a strong quarter and a raised full-year outlook.
But gains for Super Micro Computer and Nvidia dissipated by the afternoon. Super Micro dropped nearly 1% while Nvidia dropped more than 3%.
Chipotle Mexican Grill rose 4.5% after first quarter results after the market close Wednesday. The stock is on the IBD Live Ready list.
In aerospace and defense, General Dynamics reported sales of $10.7 billion, with earnings of $2.88 per share. The stock slid 4% and fell below its 50-day moving average in heavy volume.
Magnificent Seven stock Alphabet is in a buy zone ahead of earnings. The search giant is a holding in the IBD 50.
And ServiceNow dived below its 50-day moving average after reporting first-quarter results.
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