Stock market indexes were at session highs midday Wednesday as the Nasdaq composite reversed higher and other indexes pared losses. Earnings reports triggered some dramatic stock moves.
At midday, the Nasdaq composite was up 0.4% and the S&P 500 cut its loss to less than 0.1%. Both indexes remain in two-week downward price channels. But they are both holding above their 21-day exponential moving average.
The Dow Jones Industrial Average was off 0.2%, with Chevron and Microsoft each down roughly 2%.
Small caps also stood out, with the Russell 2000 reversing 0.2% higher.
Volume fell on the Nasdaq and NYSE compared with the same time on Tuesday.
U.S. retail sales climbed 3% in January, a sharp improvement from December's 1.1% decline and above forecasts for a 1.7% increase. Sales excluding vehicles also were higher than expected, up 2.3%, according to the U.S. Census Bureau.
"A rebound in U.S. retail sales was expected ... but not this much," said BMO Capital Markets Senior Economist Jennifer Lee. The 3% jump was the biggest monthly increase since March 2021, or since 2001 excluding pandemic times, she added.
The data adds to a growing picture of a resilient U.S. consumer. Combined with a strong job market, the Federal Reserve has more justification to keep tight monetary policy in place for longer.
Stock market futures were weak overnight and fell more on the retail sales report. The 10-year Treasury yield rose 4 basis points at midday to 3.8% after sleepwalking through the morning economic data.
Also on the economic front, the February Empire State Manufacturing Index fell 5.8%, smaller than the forecast 18.5% decline, and a big improvement over January's -32.9 reading.
Stock Market Moves With Earnings News
Earnings reports made for some outsize moves, most of them higher.
Airbnb vaulted 13%, sending shares above the 121.50 buy point of a cup-with-handle base. The short-term rental booking service beat fourth-quarter earnings estimates and marked its first annual profit. Airbnb is having its best day since Feb. 26, 2021, when it rose 13.3%, according to Dow Jones Market Data.
In another boost for the travel sector, TripAdvisor rose 1.5% after the company beat Q4 sales expectations and narrowed its year-over-year loss. Shares regained the 24.78 buy point of a double-bottom base Tuesday and remain in buy range.
Analog Devices smashed analyst estimates for its January-ended quarter and gave bullish guidance for the current period. The chipmaker cited record automotive and industrial chip sales. The stock gapped up 6% and is now extended from a 180.05 buy point.
Roblox surged nearly 25% and gapped above the 41.68 buy point of a deep handle. The video game developer posted a smaller-than-expected Q4 loss while bookings, a leading indicator for future game revenue, were above forecasts.
Trade Desk, Credo Make Big Moves
Trade Desk rose nearly 20% in heavy trading and climbed to a four-month high. The ad technology company beat fourth-quarter expectations and offered a rosy outlook.
But Akamai Technologies gapped down 10% after the enterprise software company topped Q4 results but lowered guidance below estimates. Akamai is on track for its worst day since Feb. 10, 2021.
The Innovator IBD 50 ETF fell 1% in Wednesday's stock market, but Credo Technology drove most of the downside.
The network services provider plummeted 44% in huge volume, wiping out a 25% gain from its Jan. 23 breakout from a cup base and undercutting the entire base. It slashed its January-quarter sales forecast, citing macroeconomic headwinds and a reduction in demand from its largest customer, according to MarketWatch.
IBD 50 stock Pure Storage is nearing the 32.55 buy point of a cup base.
Rockwell Automation is breaking out of a 294.31 handle buy point in a long base. But volume is below average.
The price of U.S. crude oil kept falling at midday, down 1.7% to $77.70 per barrel as U.S. stockpiles swelled. Energy stocks were broadly lower, with the Energy Select Sector SPDR down 1.7%. However, the ETF continues to form a cup with handle.
