The Dow Jones Industrial Average bounced off session lows Tuesday afternoon as the Fed meeting got underway. After a 1.5% fall, the S&P 500 and Nasdaq also reversed in early afternoon trading. Vertex Pharmaceuticals and Uber rose after earnings beats. Intel's rival and AI chip play Advanced Micro Devices will release earnings after the closing bell.
Job openings fell to 9.59 million in March, 1.6 million lower than December, according to the Job Openings and Labor Turnover Survey (JOLTS) report. March factory orders rose 0.9% vs. February's 0.7% decline. Orders for commercial aircraft accounted for the uptick.
Odds for a 25-basis-point hike in the interest rate the Fed charges banks stood at nearly 85% on the CME FedWatch Tool. That would bring the effective interest rate to the 5%-5.25% range. However, a June hike remains on watch, with Friday's April jobs report expected to hold further clues.
The small-cap Russell 2000 index dived nearly 2.5% at the hour. Crude oil fell over 4% to trade at $71.80 per barrel. The yield on the benchmark 10-year Treasury note dumped 13 basis points to 3.44%.
NYSE volume surged over 50% compared to Monday at this time, signaling major distribution. Nasdaq volume also rose, but just under 10%, as traders hedged exposure ahead of the Fed.
Stocks Moving Today Outside Dow Jones
Arista Networks sold off after a strong quarter that included a conservative outlook for the second half. ANET undercut its base and fell below its 50-day line Tuesday.
Rambus volume surged as it retook its 50-day line after earnings. Shares are above a buy zone from a 46.26 entry.
Chegg dived over 40% after the education digital products provider warned that OpenAI's ChatGPT is a threat to growth. Q1 revenue at the San Diego software company declined 7% year over year. CHGG expects second-quarter revenue of $175 million to $178 million.
Vertex Pharmaceuticals maintained its full-year outlook after beating estimates. VRTX shares are extended after a four-day rally.
Uber jumped after a strong quarter that saw bookings surge 19%. The IBD Leaderboard options play offers an entry at 37.68. Tesla rose a few ticks after raising vehicle prices in the U.S., Canada, China and Japan. The stock remains below its 50-day line.
Stocks Skid As Banks Dive, Fed Looms; AMD Falls Late On Guidance
Earnings Deck
On Tuesday, Advanced Micro Devices, Ford and solar play Livent will release quarterly results.
Analysts polled by FactSet expect AMD earnings per share of 56 cents on sales of $5.3 billion. AMD is testing support at the 50-day line, near an entry at 89.04. Ford and Livent fell ahead of earnings.
On Wednesday, Sunrun, Albemarle, Qualcomm and Etsy will release earnings.
Dow Jones tech leader Apple rounds off a busy earnings week on Thursday. Shares are extended and facing resistance at 182.
Stocks On Watch
Broadcom shares are in a flat base with a 648.60 buy point. Dow Jones component JPMorgan Chase is near a 141.88 entry from a cup with handle.
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