The stock market was mixed midday on Wednesday, as the Dow Jones Industrial Average hit positive territory but other major indexes fell. Earnings remained at the top of investors' minds as Google-parent Alphabet plunged on its results and was on pace for a record-setting loss in the markets.
As the Dow Jones Industrial Average edged higher by 0.1%, the Nasdaq sold off 1.8% in the stock market today. Meanwhile, the S&P 500 trimmed 1% while the small-cap Russell 2000 pulled back 1.1%.
The Nasdaq held above its 200-day moving average, but the S&P 500 fell back below that threshold. Meanwhile, the Dow remained well off its 200-day line.
Volume fell on both the New York Stock Exchange and the Nasdaq, compared with Tuesday's trading at the same time of day.
ETFs And Treasury Yields Give Up Ground
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, shed 1.8%. The Innovator IBD 50 ETF retreated 1.2%.
The yield on the benchmark 10-year Treasury note added 7 basis points to 4.91%.
The Mortgage Bankers Association said its mortgage applications index fell 1.0% for the week ended Oct. 20, on the heels of a 6.9% drop the prior week. The week-to-week metric measures applications at mortgage lenders and is considered a leading indicator for home sales and housing construction.
In other news, Fed Chair Jerome Powell is schedule to deliver introductory remarks Wednesday after the market close ahead of the 2023 Moynihan Lecture in Social Science and Public Policy in Washington, D.C.
Stock Market Action: Google Loses Billions In Market Cap
Google stock gapped down more than 9% in huge volume after Alphabet reported higher-than-expected earnings and sales late Tuesday. But the search giant fell short on its cloud-computing sales growth for the third quarter. GOOGL stock fell below its 50-day moving average as a result.
Google stock is on pace for its largest percentage decrease since Oct. 26, 2022, when it fell 9.14%. The stock also was on pace for its largest one-day market-cap loss ever at $147 billion, according to Dow Jones Market Data. GOOGL was one of the biggest losers on the S&P 500 Wednesday.
Meanwhile, Dow component Microsoft gapped up after it crushed analyst views for its fiscal first quarter late Tuesday. The software titan reported earnings of $2.99 a share, well ahead of estimates for $2.65 a share, and sales came in $2 billion ahead of forecasts.
Microsoft attributed its initiatives in artificial intelligence for its earnings beat. MSFT stock was up 2.6% in recent action, and its relative strength line hit a new peak. Fellow Dow component Travelers also helped the index, rising more than 3%.
Vertiv reversed from an early-morning gap and slid more than 3% after a temporary halt in heavy volume. The company exceeded third-quarter profit estimates while revenue missed slightly. The digital infrastructure company raised its fourth-quarter and full-year 2023 earnings estimates. VRT found support at its 50-day line.
Shares of Facebook parent Meta Platforms sank more than 2% ahead of the social media giant's earnings report, due after the close on Wednesday.
Payment Stocks Feel The French's Pain
Payment processing stocks sold off in sympathy with French stock Worldline after the company cut its full-year outlook on Wednesday. Affirm was hit hardest, plummeting around 13%. Meanwhile, Shift Four skidded more than 7% as Block sank more than 6%. And PayPal dropped more than 5%, hitting a 52-week low.
Visa stock was volatile to start the trading day, but gained around 1% as the digital payments company beat estimates on its fiscal fourth-quarter results. The Dow Jones stock is below its 50-day line and bounced off its 200-day line within a flat base. Its buy point is 250.06.
Meanwhile, Visa rival Mastercard dipped slightly. Mastercard reports its third-quarter earnings on Thursday. Shares found support at the 200-day line and are well below their 50-day line; they are also within a flat base.
Other Stock Market Movers: Amazon Remains Below 50-Day Line
Amazon shares pulled back more than 4% and remained well below the 50-day line. The e-commerce and web services giant is due to report its third-quarter results on Thursday.
Thermo Fisher Scientific plunged in heavy volume after it missed on third-quarter sales numbers and lowered its full-year 2023 revenue outlook. Shares of the medical equipment and diagnostics company hit a 52-week low on Wednesday's move.
IBD 50 stock CME Group whipsawed to a 1% gain following the company's mixed third-quarter results. The financial exchange operator beat earnings projections but missed slightly on revenue.
Dow Jones stock Boeing reversed course once again and lifted 0.9% after the aerospace and defense firm offered a mixed earnings report. Boeing, however, reaffirmed its full-year outlook on free cash flow. The company also said it will cut its 737 Max delivery goal for 2023.
Boeing rival General Dynamics soared more than 4% after reporting higher-than-expected Q3 earnings and sales. Shares are in a saucer base with a 245.06 buy point with a shallow handle forming.
Lastly, Texas Instruments shares ceded more than 3% after the chip company missed third-quarter sales estimates and gave a disappointing Q4 revenue outlook.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
