Technology stocks continued to advance but health care stocks weighed on major indexes at closing time Wednesday. That showed up in the major indexes as the Nasdaq composite moved higher, but the Dow Jones Industrial Average couldn't get out of the hole on the stock market today. Meanwhile, a Federal Reserve official warned of inflationary effects from upcoming tariffs.
The Nasdaq climbed 0.6% as the tech-heavy index looked to extend a five-day winning streak. The Dow finished the day down 0.2%, falling for the second straight day.
The S&P 500 managed to erase losses incurred thus far this year on Tuesday, but wavered Wednesday and was in danger of dropping back into negative ground. Ultimately, however, the benchmark index ended the day with a 0.1% gain. Among S&P 500 sectors, technology, communication services and consumer discretionary gained while health care and materials fell.
Volume was lower on the New York Stock Exchange and higher on the Nasdaq compared with the same time on Tuesday. Advancers lagged decliners by around 2-t0-1 on the NYSE and nearly 5-to-3 on the Nasdaq.
The small-cap Russell 2000 dropped 0.7%, but the Innovator IBD 50 exchange traded fund changed direction and rose 0.3%. The yield on the benchmark 10-year Treasury note moved up four basis points to 4.54%.
Fed Vice Chair Philip Jefferson warned that if "the increases in tariffs announced so far are sustained, they are likely to interrupt progress on disinflation and generate at least a temporary rise in inflation."
In stocks, Cisco Systems rose in extended trading after the network giant reported sales of $14.1 billion and earnings of 96 cents per share for its third quarter. Analysts polled by FactSet had projected $14 billion in sales with per-share earnings of 92 cents.
3:35 p.m. ET
AMD, eToro Pop On Share Moves
Crypto stock eToro popped above its initial public offering price of $52 on its debut on the Nasdaq Wednesday. The company offers a mobile platform for trading stocks and cryptocurrencies.
Meanwhile, artificial intelligence giant Advanced Micro Devices announced that its board had approved a $6 billion stock buyback program. Shares gained 4%.
On the Dow Jones index, Nvidia lifted blue chips along with Walmart and Goldman Sachs.
Nvidia rose roughly 4%, extending gains after Tuesday's news it will sell artificial intelligence chips to Saudi Arabian company Humain. During the session, Nvidia overtook Apple as the company with the world's biggest market cap, with its value sitting at more than $3.3 trillion.
UnitedHealth, however, was slightly lower, down 0.2%. Shares on Tuesday plummeted nearly 18% in part after the largest health insurer in the U.S. withdrew its full-year earnings outlook.
Among laggards on the Dow, pharma giants Amgen and Merck each were off roughly 3%.
1:53 p.m. ET
Stock Market Today: Oklo Soars, Karman Swings Wildly On Earnings
In stocks, Oklo soared more than 10% on earnings. The nuclear power startup and artificial intelligence play reported a loss of 7 cents per share, better than Wall Street's estimates for a 10-cent loss.
Also, a website that tracks trades made by Cathie Wood's ARK Invest funds said the famed investor has sold $600,000 worth of Palantir stock. Palantir shares were up 0.5% in recent trades.
Recent initial public offering Karman swung wildly after its earnings report. Sales rose 21% to $100 million while earnings of 5 cents per share increased 67% from the prior year.
Shares of Karman had rallied into earnings, fell in early trades, and surged 7% Wednesday afternoon. Karman started trading in February at an IPO price of $22 and has nearly doubled since.
Bull Trend Intact As Nvidia, Tesla Gain; Hot IPO Jumps Late
12:37 p.m. ET
Nvidia-Backed CoreWeave Earnings Loom
CoreWeave jumped nearly 5% and touched an all-time high ahead of its quarterly earnings report, due late Wednesday. CoreWeave provides access to graphic processing units through the cloud and is a partner of artificial intelligence giant Nvidia. Nvidia invested in the startup early and again during its initial public offering in March.
Wednesday's market moves come ahead of Thursday's release of April retail sales and the Producer's Price Index report. Retail sales are seen rising 0.1% from March while the PPI is expected to show a 0.2% increase month on month, and a 2.4% increase annually.
11:08 a.m. ET
Stock Market Today: Earnings Move Dynatrace
Meanwhile, American Eagle fell more than 6% but remained above its 50-day moving average after the company's preliminary first-quarter results. The company anticipates a 5% decline in sales of $1.1 billion. The retailer withdrew its financial outlook for the year due to larger "macro-uncertainty."
AI play Dynatrace jumped roughly 6% after beating views for its fourth quarter. Earnings of 33 cents per share grew 10% while sales rose 17% to $445 million. Analysts polled by FactSet had projected 30 cents in earnings per share on sales of $434.7 million. Shares cleared their 200-day moving average and a buy point of 51.53 as they headed into a buy zone that goes up to 54.11.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Chinese internet content provider Tencent rose 3% and approached a buy point of 69.50 after its March quarter results. Sales grew 13% to $25.1 billion. Tencent has been using AI for its advertising business.
Novo Nordisk Forges Deal For New Obesity Drug
Elsewhere, Novo Nordisk struck a deal worth around $2 billion with biotech company Septerna to make a new obesity drug. NVO stock is running below a downward sloping 50-day moving average.
Among the Magnificent Seven, Tesla added nearly 2% to extend a five-day winning streak. Alphabet cleared its 50-day moving average.
Elsewhere, Super Micro Computer soared on a $20 billion AI deal with Saudi Arabian company DataVolt.
Cisco edged lower ahead of its earnings report, due after the market close Wednesday. Shares are nearing a double-bottom base's buy point of 62.04.
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