The Dow Jones Industrial Average and other major indexes saw some selling in the final few hours of trading Wednesday, but closed well off opening lows, when a hotter-than-expected inflation report sparked broad selling.
The Dow Jones Industrial Average closed 0.5% lower in the stock market today. But the S&P 500 trimmed its loss to 0.3% and the Nasdaq composite erased early losses to close nearly unchanged. The Nasdaq, which had fallen nearly 1.2%, managed to get back slightly above the 50-day moving average. That's a significant move for the index and a sign that sellers have yet to take control of an uncertain market.
Volume rose on the NYSE and fell on the Nasdaq from Tuesday's levels. Decliners outnumbered advancers by more than 13-to-5 on the NYSE and by about 9-to-7 on the Nasdaq.
The small-cap Russell 2000 closed 0.9% lower, making it the weakest major index Wednesday. Most bullish was the action of the Innovator IBD 50 ETF, which reversed higher and closed up nearly 1.8%.
The yield on the benchmark 10-year Treasury note spiked 10 basis points to 4.636%. It was the largest one-day rise since Dec. 18, according to Dow Jones Market Data. The consumer price index for January came in above estimates, causing investors to rush into Treasuries.
House Speaker Mike Johnson noted that President Donald Trump may be considering exemptions to reciprocal tariffs on four categories, including imported automobiles and pharmaceuticals.
Meta Platforms rose on Wednesday, adding to a win streak that began even before shares broke out from a flat base's buy point of 638.40 on Jan. 24.
Nvidia slipped 1.4% on an update to the Stargate AI project, while Super Micro Computer jumped on preliminary results but the stock trimmed gains.
3:18 p.m. ET
New Breakouts For Stock Market – And Sell Signals
Wednesday saw some breakouts despite broad weakness.
Root edged past a buy point of 118.15 before pulling back. IBD MarketSurge chart tools show that the relative strength line is at a new high. The stock also has an ideal Relative Strength Rating of 99. The stock is in the IBD 50.
In aerospace and defense, EHang Holdings soared past a 22.98 cup buy point. The relative strength line is also at a 52-week high. Shares are on track for a seven-day winning streak while volume is running over 400% higher than average in today's breakout.
Cantaloupe broke out at a buy point of 10.48 in active trading. But the payments stock is thinly traded.
On the down side, Zillow fell below the 50-day moving average after earnings and also triggered another sell rule by falling more than 7% below a buy point of 86.88. Shares fell even after earnings growth accelerated 45% to 29 cents per share while sales grew 17% to $554 million.
OneStream triggered a sell signal as shares fell below the 50-day moving average in heavy volume after it announced fourth quarter results. Sales grew 29% but the finance software provider reported a loss of 19 cents per share after a 1 cent loss in the prior year.
Earnings also moved cloud software stock BlackLine, which undercut the 50-day moving average and the 200 day moving average. Sales growth decelerated but earnings declined 32% to 47 cents per share.
Other stocks selling off on earnings included rail-equipment maker Wabtec and Alisson Transmission. Both undercut the 50-day line in heavy volume.
1:54 p.m. ET
Dow Jones Stocks: Nvidia Falls
Gainers and losers were more evenly split in the afternoon in the Dow 30.
Walmart gained 1% while Boeing gained 2.2%. Both remained in their current patterns.
Magnificent Seven stocks Nvidia, Apple and Microsoft remained below their 50-day moving averages while Amazon.com hovered just above its 50-day line. Apple erased early losses to gain 1.6%.
Nvidia slipped amid news that Trump's $500 billion Stargate AI project would not rely on Japan-based Softbank's equity for funding purposes. Nvidia is a technology partner for the joint venture.
Alibaba broke out from a cup base at a buy point of 117.82. Shares are on a five-day winning streak with volume running more than 150% higher than average. On Friday, the stock cleared a handle entry at 103.67.
In financials, CME Group broke out, also from a cup base, at a buy point of 249.02. Shares pulled back below the buy point but remained over 2% higher from Tuesday's close. Volume was running more than 70% above average after the operator of futures exchanges beat Q4 profit and revenue expectations.
12:15 p.m. ET
CPI Report Shows Inflation Ran Hot In January
The consumer price index rose 0.5% on a monthly basis and 3% for the year. Excluding food and energy, prices in January rose 0.4% vs. forecasts for a 0.3% monthly increase. Annually, core inflation rose 3.3% vs. expectations of 3.1%.
President Trump posted on Truth Social that "interest rates should be lowered, something which would go hand in hand with upcoming tariffs."
Fed Chair Jerome Powell continued his semiannual testimony in Congress on Wednesday and noted that January's inflation did not change the general picture and that the economy was "close but not there on inflation."
On Tuesday, the Fed chief indicated that the Fed was in no hurry to cut rates. When asked, Powell commented on the effect of tariffs on inflation and noted that inflation was a possible outcome and depended on what goods were taxed and by how much. "In some cases it does not reach the consumer much, in some cases it does."
10:50 a.m. ET
Stock Market Today
Super Micro, an Nvidia partner, reported preliminary results late Tuesday that missed estimates, with 59 cents a share in earnings and $5.65 billion in sales. Both missed views of 61 cents per-share earnings and $5.77 billion in sales.
Super Micro, which provides data center servers, also lowered its full year sales guidance to $24 billion from $28 billion at the midpoint. But it expects $40 billion in revenue in 2026, more than current estimates. The stock held some of its early gains Wednesday in a bearish chart. The stock has more work to do before the 50-day moving average rises above the 200-day line.
DoorDash rose over 2% after it announced fourth quarter results. Sales of $2.9 billion rose 25% from the prior year, while earnings of 33 cents per share reversed a year-ago loss of 39 cents. DoorDash is on IBD Leaderboard. Shares are extended from a flat base's buy point of 181.78, best seen on IBD MarketSurge's weekly chart. The stock holds an ideal Composite Rating of 99.
Discover Top Growth Stocks With IBD Leaderboard
CVS Health gapped up over 10% after Q4 profit came in above estimates. Analysts had expected 91 cents per share on $97.1 billion in sales. The drugstore and health care company edged past views with sales of $97.7 billion.
Shares rose above the 200-day moving average, which has been a line of resistance since April of last year. The stock was trading at decade lows and its Relative Strength Rating has fallen from 53 a year ago to 25. That's far below Investor's Business Daily's recommendation of 80 or higher. However, the relative strength line is rising sharply Wednesday.
Among artificial intelligence plays, Vertiv fell despite beating Q4 estimates. The provider of cooling systems for data centers reported earnings of 99 cents a share and sales of $2.35 billion. Analysts polled by FactSet had expected 82 cents and $2.2 billion. Shares tried to get past the 50-day moving average headed into earnings but fell after its earnings outlook for the current quarter of 60 cents a share fell below estimates.
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