Major indexes attempted to bounce back in morning trading on Wednesday, with the Dow Jones Industrial Average and S&P 500 looking to break their three-day losing streaks. Nvidia experienced a rough start in the first hour of trading, while stocks held by Cathie Wood, such as Robinhood, saw significant gains. Conversely, Tesla faced a decline following an analyst downgrade as expectations pointed to a first-quarter delivery miss.
Dow Jones stocks led the way with a 0.6% increase, or 230 points, while the S&P 500 saw a 0.3% rise. Both indexes were working towards recovering from their recent downward trend. Technology and communication services sectors lagged behind on the S&P, while other sectors saw growth. The Nasdaq remained near the break-even mark and, along with the S&P, showed signs of potential market tops after posting mild distribution days on Tuesday.
Market volume on the New York Stock Exchange was higher, while the Nasdaq saw lower volume compared to the same time on Tuesday. Advancers outnumbered decliners on both exchanges. The Russell 2000 small caps index rose by 0.7%, while the Innovator ETF slipped by 1.2%. Meanwhile, the 10-year Treasury note’s yield fell slightly to 4.22%.
Investors should keep an eye on upcoming reports, such as the Commerce Department’s Personal Income and Outlays report for February, which includes the Personal Consumption Expenditures index. Additionally, retail sales ahead of the Easter holiday could see a decline, with expectations of a 7% decrease in sales, according to the National Retail Federation. Several stocks in the Dow Jones index, including Walgreens, Apple, and Microsoft, gained ground, while others like Salesforce and Chevron saw declines.
In other news, semiconductor company Semtech received an outperform rating from Baird with a price target of 40 ahead of earnings. Carnival and Cintas reported earnings, with Carnival raising its outlook despite potential earnings impact due to rerouting around the Red Sea conflict. Google-parent Alphabet is approaching a buy point, while Nvidia continued to decline for the second consecutive day. Tesla rose, despite an analyst downgrade and lower first-quarter delivery estimates.
Software stocks like HubSpot and Monday.com are setting up in bases, while Robinhood saw a 3% increase following the launch of its first credit card. ServiceNow is in a flat base with a buy point, and Vericel broke out from a flat base.
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