Despite a government shutdown, the Dow Jones Industrial Average and S&P 500 finished the first day of the fourth quarter with record closes as a jobs report increased the odds increased for an interest-rate cut. Meanwhile, an artificial intelligence play soared in its trading debut, several gold stocks extended winnings and two Nasdaq 100 companies enjoyed double-digit gains on the stock market today.
The Dow rose 0.1% and notched a record close on Wednesday. Health care stocks fared well in the Dow on Wednesday, but finance and retail stocks lagged on the prospect of a drawn-out government work stoppage. JPMorgan Chase and Goldman Sachs fell, as did Walmart and Home Depot. They all lost 1% or more.
The S&P 500 finished above the 6,700 threshold, also hitting a new all-time high, with a 0.3% rise. The tech-heavy Nasdaq composite advanced 0.4%. The small-cap Russell 2000 index reversed earlier losses and rose 0.2%.
Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Tuesday. Advancers outnumbered decliners on both exchanges — by nearly 3-to-2 on the NYSE and more than 4-to-3 on the Nasdaq.
The yield on the benchmark 10-year Treasury note fell five basis points to 4.10%. Crude oil fell to near $61.80 a barrel.
Economic reports due on Thursday and Friday may get delayed amid the government shutdown. The Commerce Department's factory orders report for August is due Thursday.
But the crucial jobs report for September is due Friday. Estimates for September payroll figures suggests that the economy added 50,000 jobs during the month while the unemployment rate held steady at 4.3%.
Markets Fare Well In Shutdowns
"If we look at the last 10 (government) shutdowns, markets have generally fared pretty well," said Mark Malek, chief investment officer at Siebert Financial, in a note to clients on Wednesday.
"The most recent one — the longest on record — was unusual because the market was already declining," he said. "Still, if you look six months after each shutdown ended, the results have generally been positive. That said, there are some differences this time, such as the impact of furloughs and other factors."
Following a weak ADP employment reading on Wednesday, traders pushed up odds to 99% for a 25-basis-point rate cut in October, up from 96.2% on Tuesday, according to the CME FedWatch Tool. That would come on top of a 25-basis-point cut in September. The Federal Reserve is due to meet Oct. 28-29.
Elsewhere, Nasdaq 100 players AstraZeneca and Biogen gained 10% each. AstraZeneca climbed amid hopes that Pfizer's pricing deal with the U.S. will pave the way for others to do the same.
And Biogen continued to reap the rewards of the U.S. Food and Drug Administration's approval of its Alzheimer's treatment Leqembi, which Biogen coproduces with Eisai. Biogen stock climbed for the fourth straight session after receiving the FDA nod on Friday.
3:20 p.m. ET
Stock Of The Day Rises On Analyst Upgrade
In stocks, Carvana rose after Jefferies raised its rating to buy from hold and increased the price target to 475 from 385, based on higher inventory and lower variable costs. Carvana stock approached a cup-with-handle buy point of 396.96.
Shares have gained 86% year to date, going by Tuesday's closing price. Carvana is Wednesday's IBD Stock Of The Day
S&P 500 Hits High; Tesla Deliveries Loom
1:48 p.m. ET
Stock Market Today: Gold Stocks Shine
Gold stocks showed their luster on Wednesday. Several are extended but Harmony Gold attempted to break out of a cup base at a buy point of 18.77. In the IBD 50 list of growth stocks, Agnico-Eagle Mines and Triple Flag Precious Metals rose more than 1% along with Kinross Gold and Eldorado Gold.
1:07 p.m. ET
AI Data Center Play Pops On IPO
Artificial intelligence data center play Fermi popped on its first day of trading Wednesday. The company priced its initial public offering at $21 and started trading on the Nasdaq under the ticker "FRMI." In intraday trade, shares touched 27.37.
The company plans to build nuclear and natural gas plants to power data centers. Its nuclear reactor, scheduled to come online on 2031, will be one of four reactors in a project called the "Donald Trump Generating Plant," according to Barron's.
12:39 p.m. ET
Earnings Movers: Conagra, RPM International
Conagra moved after the packaged and frozen foods manufacturer reported first-quarter earnings of 39 cents a share, down from 53 cents in the year-earlier period. Sales also fell to $2.63 billion for the August-ended quarter from $2.8 billion a year ago.
Still, results beat estimates of 33 cents a share in earnings on $2.62 billion in sales. Shares rose more than 3% but are in a downtrend and have been stuck below their 50-day moving average since October last year.
RPM International also rose after releasing results for its fiscal first quarter. Earnings of $1.88 per share increased from $1.84 a year ago while sales also came in higher at $2.1 billion vs. $2 billion in the year-ago period.
Shares had fallen more than 7% below a cup-with-handle buy point of 129.02 and triggered a sell rule last week. The stock headed 0.5% higher Wednesday, extending a three-day winning streak, though it got turned away at its 50-day moving average.
Meanwhile, Nvidia managed to turn itself around and post a gain of 0.2% after starting out in the red earlier in the day. Shares are in a buy zone with an entry at 184.48
10:51 a.m. ET
Warren Buffett In Talks With Occidental Petroleum
Elsewhere, seasoned investor Warren Buffett is in talks to buy Occidental Petroleum's petrochemical business, OxyChem, for $10 billion. The deal would be the largest for Berkshire Hathaway since 2022, when Berkshire bought insurance company Alleghany for $11.6 billion, the Wall Street Journal reported.
Despite the news, shares of Occidental Petroleum only rose fractionally on Wednesday. Berkshire stock slipped more than 1%.
Buffett is set to retire at the end of the year and continue as Berkshire Hathaway's chairman.
Also, shares of fitness equipment maker Peloton broke their five-day winning streak on Wednesday. Shares broke out of a flat base on Friday at a buy point of 8.88 and were in a buy zone early Wednesday before retreating.
The company is revamping its product offerings and increasing its membership fee. Some products will also see price increases.
9:48 a.m. ET
Nasdaq 100 Winners, Losers: AstraZeneca, Netflix, Meta
Among the Nasdaq 100 stocks, AstraZeneca jumped more than 6%, approaching an 82.41 cup-with-handle buy point.
Meanwhile, Netflix and Meta Platforms each dropped more than 2%. Both stocks sold off further below their 50-day moving averages.
9:08 a.m. ET
Dow Jones Movers: Amazon, Apple, Microsoft
Inside the blue chip index, Amazon.com and Microsoft declined 0.6% and 0.7%, respectively, among the worst performers in premarket trading. Amazon shares continue to sharply underperform the S&P 500 in recent weeks, while Microsoft is trying to decisively regain the key 50-day moving average.
On the upside, Apple stock climbed 0.2%, nearing a new high.
8:41 a.m. ET
Stock Market Today: Weak ADP Employment Report
Early Wednesday, the ADP employment report showed that private payrolls unexpectedly declined 32,000 in September. They were expected to rise by 50,000 for September. Further, the ADP August report was revised to show a loss of 3,000 jobs, instead of a gain of 54,000 positions.
8:17 a.m. ET
Stock Market Today; Astera, Nvidia, Tesla Fall
Astera Labs sold off more than 2% premarket Wednesday after TD Cowen initiated coverage on the artificial intelligence chip stock with a hold rating. Shares have pulled back sharply in recent sessions, trying to find support around the 10-week moving average.
Nvidia stock dropped 0.7% Wednesday premarket, threatening to snap a four-day winning streak. Shares broke out past a 184.48 buy point Tuesday, per IBD MarketSurge, hitting a record high.
Finally, Tesla shares moved 0.3% lower, on pace to end a three-day win streak. Shares are extended above a 367.71 buy point following strong gains in September.
Earnings Movers: Acuity, Cal-Maine, Nike
Acuity shares declined nearly 4% after the company's mixed fiscal fourth-quarter earnings sales results, while Cal-Maine Foods tumbled more than 7% on weak fiscal first-quarter results.
Nike jumped more than 4% premarket Wednesday after topping quarterly earnings and sales estimates.
Nike reported earnings of 49 cents per share, down from 70 cents last year. Revenue rose 1% to $11.7 billion. FactSet analysts expected earnings of 27 cents per share on a 5.2% sales decline to $10.99 billion.
"While we're getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment," Chief Executive Elliott Hill said in the release.
Stock Market Today: Government Shutdown; Jobs Data
The federal government's funding ran out at midnight, triggering a partial government shutdown. Democrats are demanding that President Donald Trump extend expiring Obamacare subsidies and reverse recent Medicaid cuts. Trump has threatened to fire a slew of federal workers permanently in a shutdown.
On the economic front, the ADP employment report is due out at 8:15 a.m. ET. Private payrolls are expected to rise by 50,000 for September vs. 54,000 in August, another muted showing.
Next, the Purchasing Managers' Manufacturing index, on deck for 9:45 a.m. ET, is expected to remain unchanged from the flash update at 52.0 in September, down slightly from 53.0 in August.
Finally, the Institute for Supply Management's manufacturing index is expected at 49.0 in September vs. 48.7 in August, still in a marginal contraction. That's due out at 10 a.m. ET.
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