The major stock market indexes were mostly down Wednesday afternoon and held firm over the past hour after sharply rebounding from early morning highs. Investors have found a new reason to worry about rate hikes.
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Bank of Canada unexpectedly raised interest rates by a quarter of a percentage point Overnight rates rose to 4.75% from 4.50% after better-than-expected consumer spending sparked inflation concerns.
Yields on 10-year U.S. Treasuries climbed 9 basis points to 3.78%.of CME FedWatch Tool There is now a 70% chance that the Federal Reserve will not raise rates this month, with the rest of the traders expecting a one-quarter percentage point hike.
The worst hit was the Nasdaq, which fell 1%. The Dow Jones Industrial Average rose 0.3%. The S&P 500 fell 0.3%. The Russell 2000 outperformed the major indexes again, gaining 1.8% in afternoon trading.
Invesco QQQ Trust ETF (QQQ) pulled back 1.4%. The First Trust Nasdaq 100 Equal-Weighted ETF (QQEW) fell 0.9%.
And the Innovator IBD 50 ETF (FFTY) fell 1.6%.
Volumes on the NYSE and Nasdaq rose compared to the same period on Tuesday.
Crude oil rose 1% to $72.45 a barrel. Gold futures fell 1.2% and remained below the psychological $2,000 per ounce level.
Bitcoin fell 2.6% to $26,570. coin base (coin) rebounded 2.4% after falling 12.1% on Tuesday following news that the SEC had accused the cryptocurrency exchange of operating as an unregistered stock exchange, broker and clearing house since at least 2019. .
Stock Market Movers: Dave and Buster Score Big
Tesla (TSLA) all Model 3 EVs $7,500 tax credit. The stock is above the buy range with the double bottom buy point of 207.79. TSLA is on track for its highest closing price since Oct. 6, 2022, up more than 80% year-to-date.
Dave & Busters (play) surged more than 18% after better-than-expected revenue in the first quarter but lackluster sales growth.
“As a testament to the long-term success of our business and our confidence in the value of our stock, we have so far repurchased $200 million of our common stock through fiscal 2023, representing nearly 12% of our outstanding stock. We’ve cut back, said CEO Chris Morris.
The children’s restaurant operator plans to open 15 stores in India and 5 in Australia. The stock has regained its 50-day and 200-day moving averages with this move. PLAY sees its biggest gain since November 2020.
Ollie’s Bargain Outlets (Ori) reversed the morning rally and fell 3.3%, despite better first-quarter earnings and better than full-year earnings forecasts.
The move sent the stock below the 50-day line as a cautionary move.
casey retail store (Casey) plunged 2.9% on Wednesday with heavy volume, triggering a 7% sell rule from the 236.45 buy point on a double-bottom basis. The stock has fallen further below its 50-day moving average and is now below its 200-day moving average.
The sell-off came after the company said late Tuesday that its profit for the quarter to the end of April was down 7% and sales were down 4%. Convenience store retailers also underperformed FactSet’s profit and earnings forecasts.
IBD 50 AI Stock Pop
IBD50 stock symbolic (SYM) shares surged more than 13% after several analysts raised their price targets on AI-focused robotics companies. The stock hit an all-time high on Wednesday and is up more than 230% this year.
The company focuses on AI-enabled technology for supply chain operations.
vista energy (vist) rose 3.5% amid high volume and topped the 22.84 buy point amid heavy trading. VIST is up 50% this year and hit a record high on Wednesday. Analysts expect earnings to rise 60% this year.
The line of relative strength in the stock has reached a 52-week high, as indicated by the blue dot on the MarketSmith chart. The Mexico-based oil and gas exploration and drilling company operates primarily in Argentina and Mexico.
Yeext (YEXT) increased 38% in very strong volumes after the company reported significantly higher earnings and sales in the first quarter of the fiscal year. It also raised its EPS and earnings forecasts for the fiscal year.
Due to the breakaway gap, the stock has a buy range starting at today’s 5-minute high of 12.90. Yext is a cloud-based online search and marketing company.
campbell soup (CPB) Although Q3 EPS beat expectations, 2023 adjusted EPS beat expectations, resulting in a sharp 8% decline. EPS Guidance Falls Below Analyst Consensus Expectations. CPB is currently the biggest loser in the S&P 500.
Netflix profit from sharing fees
Netflix (NFLXThe stock is now up 0.4%, slowing from earlier gains after JPMorgan Chase & Co. raised its price target from 380 to 470 and maintained its overweight rating. Meanwhile, Wells Fargo raised its target from 400 to 500 and also gave it an Overweight rating.
video streaming giants crackdown on password sharing and Billed $8/month with a shared account. JPM analysts expect the new insurance to generate an additional $2.4 billion in revenue in 2023. NFLX has extended from the buy point of 349.80 and is approaching its 20% profit target from there.
meme stock game stop (GME) soared 5.5% above the April quarter results after the market closed.
Follow Kimberly Koenig for more stock market news on Twitter @IBD_KKoenig.
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