Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
KIMBERLEY KOENIG

Stock Market Picks Up Steam After CPI Dips. Celsius Stock Soars Nearly 20%.

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.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.