The stock market gave up some of its gains in afternoon trades Wednesday, but the tech-heavy Nasdaq still led the day, thanks to a boost from Netflix's positive earnings report. Meanwhile, investors awaited Tesla results, due after the close.
The Dow weakened in afternoon action, but still managed to increase 0.1%. The 30-stock blue chip index crossed above the 38,000 level for the first time Wednesday before dipping back under that threshold.
The S&P 500 climbed 0.5%, while the Nasdaq gained 0.9% on the stock market today. Small caps on the Russell 2000 reversed course and trimmed 0.2% Wednesday afternoon.
Elsewhere, the Invesco QQQ Trust advanced 1% as the Innovator IBD 50 ETF gained 0.3%.
Volume rose on the New York Stock Exchange and fell on the Nasdaq vs. the same time on Tuesday. The 10-year Treasury yield added 3 basis points to 4.17%.
Magnificent Seven stock Tesla rose ahead of the electric-vehicle giant's fourth-quarter earnings report, due after the close. Analysts predict a large drop in quarterly earnings amid margin pressure from the company's continued price cuts. Investors are expected to also focus on delivery numbers.
Stock Market Movers: Netflix Subscribers Delight
Netflix gapped up in huge volume after the streaming service reported higher-than-expected fourth-quarter subscriber additions and revenue but lower earnings.
The streaming giant added 13.12 million new subscribers, easily beating estimates, as it got a boost from its ad-tier based subscriptions and stronger enforcement of its password sharing policy. The stock is extended from the 5% buy zone of a 482.70 handle buy point, according to MarketSmith pattern recognition.
Further, Netflix announced a deal on Tuesday with TKO Group Holdings to carry World Wrestling Entertainment's flagship program "Raw" starting next year. The 10-year deal is valued at more than $5 billion. TKO gave back morning gains and sank 1.6% after Tuesday's 15.8% leap in huge volume.
Other Stock Market Action: DraftKings Breaks Out
DraftKings broke out of a double-bottom base and reached a 38.97 buy point. Shares moved into a buy zone that stretches to 40.92 as the stock hit a 52-week high. The sports betting company rallied on news it is in talks for a partnership deal with Barstool Sports. Shares are on track for their highest close since Nov. 12, 2021, when they reached 40.51, according to Dow Jones Market Data.
East West Bancorp broke out of a flat base with a 74.61 entry in heavy volume, and is in a buy zone stretching to 78.34. Shares popped after the bank company reported higher-than-expected fourth-quarter earnings, although both profit and sales dropped from last year's quarter.
Boeing led the Dow Jones index and gained more than 2% after Chief Executive Dave Calhoun commented that Boeing doesn't fly unsafe planes. He was scheduled to meet with lawmakers in Washington regarding recent safety concerns. The aircraft and aerospace stock is testing its 200-day moving average.
Kura Oncology rocketed higher in huge volume after the cancer therapeutics developer announced it would sell 1.38 million shares at a price of 17.25 per share in a private placement. The company is expected to announce test results for a cancer drug next week. Shares are extended from a cup base with a 14.32 buy point.
Chip Stock Hits A New High
Chipmaker Advanced Micro Devices soared more than 6% in heavy trading and reached an all-time high. Shares got a lift after New Street upgraded the stock to buy from neutral with a price target of 215.
ASML popped more than 10% in heavy trading after the chip equipment maker reported a beat on fourth-quarter sales and profit and guided light on current quarter sales. The stock hit the 20% profit-taking zone from a 696.97 cup-with-handle buy point.
Texas Instruments fell more than 2% following the company's mixed fourth-quarter earnings report. The chipmaker beat profit expectations but missed on revenue estimates. Shares retreated below a 172.31 cup-with-handle buy point after breaking out Friday.
Chinese online education stock New Oriental Education trimmed larger gains from its morning gap-up in heavy volume, following the company's fiscal second-quarter earnings report. Earnings and sales topped views for what is normally its slowest quarter of the year, according to company.
New Oriental shares reached an early buy point of 78.19, but have since fallen below the entry. Its weekly chart formed a base with an 83.73 entry.
Stride gave back gains and fell 1.9% after the online education provider reported better-than-expected fiscal second-quarter profit and sales. Shares topped the buy zone of a 62.56 flat base entry, before retreating below the buy point in heavy action.
Robotics Stock Gives Back Gains
Intuitive Surgical gave back early morning gains and dipped 0.8% following the company's beat on fourth-quarter earnings and sales. Shares are extended from a cup-with-handle buy point of 318.26 and touched an all-time high Wednesday before surrendering that ground. Intuitive is known for its da Vinci robotic surgical system.
SAP gapped up on news it will slash 8,000 jobs as part of a restructuring program. SAP reached an all-time high on Wednesday. Shares are extended from a 160.35 flat base buy point.
IBD 50 stock ServiceNow climbed more than 2% ahead of its fourth-quarter earnings release Wednesday, due after the market close.
Finally, DuPont de Nemours gapped down as much as 17% after the company gave preliminary fourth-quarter and full-year 2023 numbers. The steep drop below the 50-day and 200-day moving averages in heavy action triggered a sell rule.
Dupont stock recovered somewhat in afternoon trading but could still be on track for its largest one-day percent decrease since Dec. 29, 2008, when it fell 20.79%, according to Dow Jones. Dupont was the biggest loser on the S&P 500 Wednesday.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
