The stock market was mixed at midday Wednesday, with the Nasdaq composite and techs taking the lead. The IBD 50 outperformed.
The Nasdaq composite rose 0.4% as the tech-heavy index benefited from strength in that sector. Technology Select Sector SPDR climbed 0.6%. Semiconductor, networking and chip industry groups were in the top 10 of the IBD industry groups.
The S&P 500 climbed 0.3% and is trying to regain the 50-day moving average.
The Dow Jones Industrial Average was down 0.1%. Merck was the Dow's worst performer, down 2.7% as it tests the 50-day moving average. The small-cap Russell 2000 edged up 0.1%.
Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday.
The Innovator IBD 50 ETF climbed 0.7%, outperforming the stock market. Techs such as Super Micro Computer, Axcelis Technologies and Lattice Semiconductor helped lead the IBD 50.
One stock that hurt the IBD 50 was Shoals Technologies, which gapped down 8%. The stock fell below its 50-day moving average but continues to form a base. The solar storage and charging company announced a secondary offering of 24.5 million shares at $24.70 a share.
Among major stocks, Tesla dropped nearly 3% in above-average volume. The National Highway Traffic Safety Administration is investigating two reports that the steering wheel of 2023 Model Y SUVs snapped off. Tesla shares have been bending lower for about three weeks after a strong start to 2023.
Stock Market Keeps Eye On Powell, Data
Fed Chair Jerome Powell resumed his congressional testimony today, this time in front of a House committee. On Tuesday, Powell's view that the Fed may need to ratchet up rate hikes sent the stock market reeling.
Powell left financial markets believing a half-point interest rate increase is planned for this month's Fed meeting. The last rate increase was a quarter point, as inflation showed signs of easing.
The yield on the 10-year Treasury note eased 5 basis points to 3.92%. The two-year yield, which hit a June 2007 high Tuesday, was little changed and at 5% Wednesday midday.
Job openings totaled 10.824 million in January, down from 11.012 million the previous month, the U.S. Labor Department reported. Economists had forecast 10.6 million openings. Powell, who had not seen the report, said it would be one piece of data to consider at the March meeting.
"Despite January's drop, the level remains historically elevated," BMO Capital Markets Senior Economist Priscilla Thiagamoorthy said in an analysis. "For every unemployed American looking for a job, there are almost 2 vacancies available. That's near an all-time high, showcasing the stark imbalance between the demand and supply of labor."
The ADP National Employment Report showed private employers added 242,000 jobs in February. That's above the 200,000 consensus forecast in Econoday.
CrowdStrike, United Natural Foods Among Stock Market Movers
CrowdStrike pared gains to 2.8%. The cybersecurity company beat profit and revenue expectations. The company's revenue guidance also was more than analysts expected. The stock is recovering from a deep decline. It has climbed above its 50-day moving average but remains below the 200-day line.
United Natural Foods plummeted 27% in heavy volume, falling to the lowest price in more than two years.
The distributor of organic and natural foods reported a 43% plunge in January-quarter earnings, below views, and sales growth of 5%. The company cut its profit outlook for the current fiscal year, and withdrew longer-term guidance.
Harley Davidson fell nearly 2% and is now below its 200-day moving average. The motorcycle maker broke out strongly from a 48.82 buy point but is now 8% below it, causing a sell signal.
