Stocks Rise Ahead Of Fed Powell; Nvidia, SMCI Fall As Cisco Rival Breaks Out| Investor’s Business Daily
Major indexes inched up in morning trades Wednesday as investors awaited the Federal Reserve’s rate decision and subsequent comments from Fed Chair Jerome Powell. Nvidia gave up some of Tuesday’s gains on the stock market today while Super Micro Computer continued to fall. And famed investor Cathie Wood sold shares of Block.
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The Dow Jones Industrial Average and the S&P 500 were up fractionally on the stock market today. Among the S&P sectors, health and energy lagged but utilities and industrials gained. The Nasdaq edged slightly higher in the wake of gains on light volume Tuesday.
On Wednesday volume was lower on the Nasdaq and on the New York Stock Exchange compared with the same time on Tuesday. Breadth was mixed with advancers edging past decliners on the NYSE while decliners led on the Nasdaq, also by a small margin.
Small cap stocks on the Russell 2000 also edged up while the Innovator IBD 50 (FFTY) exchange traded fund gained 1%. Also, the yield on the benchmark 10-year Treasury note fell nearly 1 basis point to 4.28%.
The Federal Reserve meeting ends on Wednesday when rates are widely expected to stay the same. Traders see a higher chance of the first rate cut in the June meeting.
Meanwhile, comments from Fed Chair Powell may hold further cues. In December, the Fed’s dot plot suggested three rate cuts in 2024, beginning in March. But with rates likely to stay the same on Wednesday, Powell’s new plan will be closely scrutinized is on watch.
Stock Market Today: Nvidia, Super Micro Dip
Super Micro Computer (SMCI) continued to fall in the wake of its stock offering. Super Micro offered 2 million shares at 875 for a total of $1.75 billion. The offer is expected to close around March 22. Shares fell more than 3% Wednesday morning, marking a fifth straight day in the red.
Nvidia (NVDA) continued to bump along below the 900 level as shares dipped fractionally in morning action. Nvidia managed to turn losses into gains the previous two sessions, so it remains to be seen if the leader in artificial intelligence chips can keep it up.
Arista Networks (ANET) edged into buy territory before retreating Wednesday morning. The rival of Cisco Systems (CSCO) is trying to break out from a flat base with an entry at 292.66.
Also, famed investor Cathie Wood sold shares of Block (SQ), a holding in both the Ark Next Gen Internet ETF (ARKW) and Ark Innovation ETF (ARKK). Shares of Block were down marginally on the stock market today.
Dow Jones Stocks
On the Dow Jones index, Boeing (BA) and chemical firm Dow (DOW) led gains while Caterpillar (CAT) and Amgen (AMGN) fell.
Disney (DIS) and Merck (MRK) remain in buy zones, according to IBD MarketSurge.
Meanwhile, Nike (NKE) struggled below its 50-day moving average with earnings due on Thursday. The key level has been a level of resistance since December for the Dow Jones leader.
Stock Market Today: Retailers Report
Earnings moved some retail stocks. Ollie’s Bargain Outlet (OLLI) which rose 1%, while General Mills (GIS) added gains to a three-day rally and cleared the 200-day moving average.
Among Chinese internet retail plays, PDD (PDD) soared past a buy point of 139.06 but pulled back below it after beating sales and earnings views for its fourth quarter.
More results from Lululemon (LULU) and Darden Restaurants (DRI) are due Thursday.
Outside earnings, Chipotle Mexican Grill (CMG) soared 7% after news of a 50-for-1 stock split. However, the stock split does not change the valuation or investors’ existing stake in the company’s shares.
Other Movers: Texas Roadhouse, Marriott, Alphabet
Texas Roadhouse (TXRH) is in buy range from a four-weeks’-tight entry at 152.46. Marriott (MAR) is also near a three-weeks-tight entry of 252.17.
In health care, Neurocrine Biosciences (NBIX) is in a base with a buy point of 143.35.
And in the IBD MarketSurge Growth 250, Magnificent Seven stock Google-parent Alphabet (GOOGL) has formed a flat base with a buy point of 153.78.
Finally, IBD 50 stock Shockwave Medical (SWAV) gapped up after forming a three-weeks-tight pattern with a buy point of 270.96.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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