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Investors Business Daily
Investors Business Daily

Stock Market Today: Dow Jones Rises As Warren Buffett's Berkshire Hathaway Reveals Key Holdings

The Dow Jones Industrial Average added to gains through Wednesday afternoon and finished 0.4% higher. Other indexes fared even better in the stock market today. The market's rebound came after a Federal Reserve official hinted rate cuts could still be in the cards in the coming months.

Chicago Fed President Austan Goolsbee said Wednesday that rate cuts could stay the course even if the road to the target 2% inflation is bumpy. The Fed official said that even if inflation comes in higher than expected for a few months, "it would still be consistent with our path back to target."

Nonetheless, traders see just an 8.5% chance of a rate cut in March, according to the CME FedWatch Tool. Higher-than-expected inflation numbers released Tuesday prompted a market sell-off, as the Dow plunged more than 500 points on fears rate cuts were in jeopardy.

The S&P 500 gained 1% in the stock market today. The Nasdaq led the major indexes with a 1.3% gain.

Volume was lower on both the New York Stock Exchange and the Nasdaq compared with the same time on Tuesday. But participation showed strength, as advancers beat decliners by better than 3-to-1 on the NYSE and Nasdaq.

Small caps had a great day. The Russell 2000 rose 2.4% while the Innovator IBD 50 exchange traded fund outperformed with a nearly 3% gain.

The yield on the benchmark 10-year Treasury note fell 5 basis points to 4.26%, which appeared to aid stocks.

Dow Jones Stocks

Cisco Systems fell about 5% in after-hours trades following the release of quarterly results, according to IBD MarketSmith.

Meanwhile, tech stocks took the lead in the Dow. Salesforce and Intel both added 2% while Walmart and Procter & Gamble fell less than 1%.

Apple fell to a test of the 200-day moving average.

Other Movers In The Stock Market Today

Shares of Airbnb trimmed early losses to less than 2% after the travel booking company posted a strong sales outlook for the current quarter. Shares are finding support at the 50-day moving average.

Lyft soared 35% after the ride-sharing company said it would be free cash flow positive for the first time this year. Analysts also expect adjusted margins in its gross bookings will improve.

Rival and IBD Leaderboard stock Uber soared nearly 15% after the company announced a stock buyback program.

New issue Maplebear, the parent company of Instacart, partly recovered from a steep fall and ended 1.9% lower after reporting fourth-quarter results. Elsewhere, Zillow soared over 6% after Q4 results. Shares have broken out of a handle's buy point of 57.40.

Cathie Wood's Ark Invest holding Robinhood soared 13% but closed just below the 13.51 buy point of a cup base. Fourth-quarter revenue from crypto and stock trades as well as higher net interest revenue beat views. Earnings of 3 cents per share surprised, as analysts expected a 1-cent loss.

The ARK invest portfolio has been buying shares of the online brokerage stock steadily since Jan. 30. Both the ARK Innovation ETF and the ARK Next Gen Internet ETF hold shares of HOOD. Robinhood is the 10th largest holding in ARK ETFs, according to the company's disclosures.

Elsewhere, Scion Asset Management and its chief, Michael Burry — whose shorting of the housing market in 2008 was depicted in the film "The Big Short" — filed its quarterly holdings report. The investment firm bought two Magnificent Seven stocks, Amazon and Alphabet, during the quarter ended Dec. 31.

Warren Buffett's Mystery $1 Billion Stock

Berkshire Hathaway rose nearly 1% in the stock market today. The Warren Buffett-led company disclosed  its holdings as of Sept. 30 through a Securities and Exchange Commission filing Wednesday.

In enterprise software, Akamai disappointed with mixed results. While earnings topped estimates, its sales and outlook missed targets. Akamai stock fell more than 8% and triggered a sell rule by breaking below the 50-day moving average.

In health care, Crispr Therapeutics broke out from a cup base with an entry of 76.97. On Tuesday, the European Commission approved its gene-based treatment for sickle cell disease.

Dialysis services provider DaVita gapped up more than 8% after fourth-quarter results were announced late Tuesday.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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