Stock market indexes were unchanged to down mildly and closed off session highs Wednesday. Earnings reports produced mixed results, with regional banks pulling ahead. The Fed's Beige Book report provided some hope on inflation.
The Beige Book showed consumer spending was "flat to down slightly," as prices climbed "moderately," according to BMO Capital Markets Economic Research.
Price increases were seen as "slowing." This can be good news for the Fed, as it weighs its next move at the May 2-3 policy meeting.
The recent banking failures caused lending to tighten the most in big cities such as New York and San Francisco, while Chicago had a more moderate effect. Loan delinquencies also ticked up.
The Dow Jones Industrial Average was off 0.2%. The Nasdaq and S&P 500 were nearly unchanged. The iShares Russell 2000 ETF added 0.1%.
NYSE volume rose and Nasdaq volume fell compared with the same time on Tuesday, in preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF dipped 0.1%. But the Innovator IBD 50 ETF fell 1.2%.
Crude oil fell 2.3% to $79.01 per barrel. Gold futures trimmed 0.6% to $2,007 per ounce. The SPDR Gold Trust ETF slid 0.5% along with the yellow metal.
Bitcoin sold off 3.3% to $29,325, trading under the psychological $30,000 level. Cryptocurrency exchange Coinbase tumbled 4.2%.
The 10-year U.S. Treasury yield added 3 basis points to 3.60%. The CME FedWatch tool shows nearly 90% odds for a quarter-point rate hike at the May Fed policy meeting.
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Intuitive Surgical popped 10.9% in heavy volume, after reporting better-than-expected Q1 EPS and sales. Shares gapped out of a cup base, creating an alternate 299.90 buy point.
The relative strength line hit a new 52-week high, as indicated by the blue dot in MarketSmith pattern recognition.
Several analysts raised their price targets on the maker of the robotic da Vinci Surgical System. ISRG is on track for its largest increase since March 24, 2020, and is the S&P 500's biggest winner today.
United Airlines jumped 7.5% in heavy volume after reporting stronger-than-projected Q1 EPS and sales. Management also gave Q2 and full-year 2023 EPS guidance exceeding analysts estimates. UAL retook the 21-day line but remained below the 50-day average.
IBD 50 stock DraftKings popped 2.3% after Morgan Stanley raised its price target to 23 from 22, and maintained its overweight rating. The relative strength line hit a new 52-week high as the stock approaches a 21.72 buy point.
Travelers rallied 6.2% following its beat on Q1 EPS and revenue. The insurance company also announced an additional $5 billion in share buybacks and an 8% increase in its quarterly dividend.
The move lifted shares back above the 50-day moving average for the first time since early February. TRV led the Dow today.
Western Alliance Bancorp soared 24.1% after posting higher-than-estimated EPS and a 35.7% increase in net interest income. The move puts the regional bank on pace for its largest increase since Nov. 9, 2020, when it rose 23.6%, according to Dow Jones Market Data.
U.S. Bancorp reversed higher 2.3%, after reporting a beat on Q1 top and bottom lines.
IBD 50 stock Interactive Brokers closed down 0.8% in a volatile activity, after reporting a miss on Q1 EPS and sales late Tuesday. Shares of the online brokerage briefly dipped below the 50-day line, but found support.
Morgan Stanley also reversed higher, and closed up 0.7%. It reported better-than-expected Q1 EPS and sales, but lower revenue from the prior year's quarter.
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CDW tanked 13.2% after announcing preliminary Q1 sales number that were below analysts forecasts. The technology products distributor is the S&P 500 biggest loser today.
IBD 50 stock Shift4 improved slightly from bigger losses earlier in the session, down 8.7% in heavy volume. The stock slid below the 50-day line, triggering a sell signal.
The move comes after short seller Blue Orca issued a report on the payments processing company, citing "highly questionable and hyper aggressive accounting maneuvers."
Tesla reported lower than expected Q1 revenue and in-line EPS after the closing bell. Operating margin fell from last year's quarter. Shares fell 4% in after-hours trading. Tesla cut prices in the U.S. for the second time this month.
Netflix fell 3.2% in heavy volume, after missing the Q1 new subscriber forecast and giving Q2 revenue guidance below analysts estimates. Shares of the streaming entertainment giant fell modestly below the 50-day line, and the stock continues to work on a base.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
