The stock market rallied into the close Wednesday afternoon, ending mostly higher. Indexes were volatile after the April consumer price index showed signs of hope with a slight improvement in price levels.
The Dow Jones Industrial Average eased earlier losses, closing down 0.1%, while the Nasdaq composite recouped a gain of 1%. The S&P 500 rebounded from a midday tumble, gaining 0.5%. The Russell 2000 rose 0.6%.
NYSE and Nasdaq volume increased compared with the same time on Tuesday, according to preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF notched up 1.1%, while the Innovator IBD 50 ETF recovered 0.7%.
Crude oil lost 1.3% to $72.78 per barrel. Gold futures shed 0.3% and traded at the $2,037 level. Bitcoin reversed course and trimmed 0.1% to $27,745.
Odds Rise For No June Rate Hike
The 10-year U.S. Treasury yield lost 8 basis points to 3.44%. The CME FedWatch tool shows over 90% odds for no rate hike at the June Fed meeting.
The April consumer price index increased by the expected 0.4%, and 4.9% on an annual basis vs. the 5% expected. It was lighter than March's 5.0% reading.
The producer price index is slated for Thursday morning. April PPI is expected to increase 0.3% vs. a decrease of 0.5% in March, according to Econoday. The annual increase is projected at 2.5%, down from 2.7% in March.
Stock Market Earnings Movers: Warren Buffett Stock Misses
Warren Buffett holding Occidental Petroleum sank 3.6% after a miss on both Q1 earnings and sales Tuesday after the market close. The oil and gas producer fell further below its 50-day moving average. Shares have lost over 9% this year so far.
Switzerland-based eye care company Alcon popped 8.9% in heavy volume, and became extended from a cup-with-handle entry at 72.91. The move came after the company reported better-than-expected first quarter earnings and gave full-year 2023 EPS and sales guidance.
Baird upgraded Alcon to outperform from neutral, and raised its price target to 90 from 75.
Airbnb plunged 10.9% after reporting a beat on Q1 top and bottom line expectations, but it recorded fewer nights booked than analysts were looking for.
Management warned of "unfavorable" booking trends for the second quarter and a lower margin. Shares of the online travel booking platform fell below the 50-day moving average, a red flag, but found support at the 200-day moving average.
ABNB posted its largest drop since Nov. 2, when it plummeted 13.4%.
Li Auto soared 13.9% after the Chinese EV maker posted better-than-expected Q1 adjusted bottom line and issued guidance.
Exact Sciences gapped above a saucer base with a 72.29 buy point. The biotech beat Q1 sales and earnings estimates. Valvoline also gapped out of a base after the company's earnings report. Shares remain in a buy zone.
Futures Rise After Nasdaq Jumps, But Curb Your Enthusiasm
IBD 50 Stock Movers
Celsius Holdings jumped 19.8% in heavy volume after reporting better-than-expected Q1 earnings and sales.
The fitness beverage stock broke out of a cup base with a 122.34 buy point, lifting it above the 5% buy zone. Celsius was the biggest gainer in the IBD 50 today. The relative strength line hit a 52-week high. The report prompted several analysts to raise their price targets on the stock.
Duolingo popped 10% in heavy volume after the language-learning app posted a smaller-than-expected Q1 loss and a beat on sales.
Shares are above the 25% profit target from a buy point at 113.46. But the stock is in a buy area after finding support at the 10-week moving average this week.
Management raised its full-year 2023 revenue guidance. Analysts project earnings of $1.37 per share in 2023, up from a loss of $1.51 in 2022.
Stun-gun maker Axon Enterprise tanked 15.1% in heavy volume, despite a beat on Q1 top and bottom lines.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
