Stock markets improved Wednesday but still posted losses, with all major indexes rebounding from the day’s lows in afternoon trading. The market decline came as yields on U.S. Treasuries reached levels not seen since before the Great Recession.
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The benchmark 10-year Treasury yield rose again, adding 4 basis points to 4.89%. The yield rose above the 4.9% level in early trading for the first time since July 2007.
On the other hand, the number of housing starts in September was lower than expected, despite showing expectations from the previous month. The Ministry of Commerce stated: The number of housing starts has sharply increased It rose 7% in the month to an annualized rate of 1,358,000, up from August’s revised figure of 1,269,000. However, the number was lower than the September estimate of 1,394,000.
The number of building permits, a rough guide to future building activity, fell 4.4% in September to 1,473,000. Rising mortgage rates are weighing on the housing market.
Index decreases as volume increases
In the stock market today, the Dow Jones Industrial Average fell 0.5%, and the Nasdaq also fell 0.8%. The small-cap Russell 2000 index also fell 1.4%, while the S&P 500 index fell 0.7%.
The NASDAQ and S&P 500 remained below their 50-day moving averages, while the Dow remained above their 200-day moving averages.
Volume on the New York Stock Exchange and Nasdaq increased compared to trading at the same time on Tuesday.
Invesco QQQ Trust (QQQ) Exchange-traded funds (ETFs) tracking the Nasdaq 100 fell 0.6%. Innovator IBD 50 ETF (FFTY) retreated by 1.1%.
Stock market trends: Tesla sinks before profits
leaderboard and IBD50 Component Tesla (TSLA) fell more than 3% ahead of its third-quarter earnings report, which will be released after the stock market closes on Wednesday. Analysts expect Tesla’s earnings per share to decline sharply as revenue increases.
TSLA stock found support after testing the 50-day line. According to MarketSmith pattern recognition, the electric vehicle maker is on a cup-with-handle base with a buy point of 278.98. Investors may use the October 10 high of 268.94 as an early entry.
Nvidia (NVDA) On top of Tuesday’s 4.7% decline, Wednesday’s drop of 3.5% pushed the artificial intelligence chip maker below its 50-day line. The United States announced on Tuesday that it would restrict exports of AI chips to China. In response to this, Citigroup lowered its price target for Nvidia from 630 yen to $575, but maintained a buy rating. Nvidia is on his IBD Leaderboard and his IBD 50 Stocks.
tide (TDW) stock led the IBD 50, rising more than 4%. The marine energy transportation company’s stock has outperformed the market, rising about 95% this year.
Stocks in a Dutch chip equipment manufacturer ASML (ASML) fell nearly 4% after the company reported mixed third-quarter results and warned that sales would be flat in 2024. The stock price fell further below the 50-day line.
Other stock market moves: IBD 50 names fall
On the other hand, heavy equipment stocks felt under pressure. telex (tex) saw volume drop nearly 7% after Barclays lowered its price target to 60 from 66 and maintained an equal weight rating on the stock. TEX stock has fallen below the 200-day line.
Dow Jones Heavy Equipment Stocks caterpillar (Cat) also fell sharply. The stock price remained below its 50-day level.
Of the IBD50 stocks, united rentals (URI) fell more than 3% in heavy trading. Also, modine manufacturing (mod) plummeted more than 7% and fell below its 50-day line.
united airlines (UAL) fell more than 7% as the company filed a positive earnings report but lowered its fourth-quarter earnings outlook due to the Israel-Hamas war. The stock is well below its 50-day line and near its 52-week low. UAL stock was the biggest loser among S&P 500 stocks on Wednesday.
dow jones stocks procter and gamble (P.G.) rose more than 2% after the company reported better-than-expected first-quarter results and sales. Consumer staples stocks have regained their 200-day moving average. However, it remains below the 50-day line amid tight trading near the bottom on a sideways basis.
Dow Jones constituents rise, others fall
Dow Jones Components Traveler (TRV) is now up 0.3%, slowing from a strong rise after insurers reported large deviations in claims. Third quarter profit forecast and higher income. Property and casualty insurance companies cited large-scale catastrophic losses due to wind and hail. The stock is trading below its 200-day line.
interactive broker (IBKR) by more than 4%, even though the online brokerage reported better-than-expected third-quarter profits and sales. Recent stock market movements have caused stock prices to fall below the 200-day line.
financial services stocks morgan stanley (M.S.) fell more than 7% after the company reported lower-than-expected profits and higher sales in the third quarter, while sales were lower than a year ago.
JB Hunt Transport Service (JBHT) fell more than 6% after the shipping company reported missing earnings and sales forecasts. The stock price fell below the 50-day line and the 200-day line. A significant move below the 50-day line triggered a sell signal.
It’s time to prepare your watchlist. Look for stocks near relatively strong buy points. And keep future profits in mind.
For more stock market news on X/Twitter, follow Kimberly Koenig @IBD_KKoenig.
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