The major stock indexes strengthened in the final 30 minutes Wednesday, with the Dow Jones Industrial Average and S&P 500 eking out gains and the Nasdaq trimming losses. Investors nervously awaited the earnings report from artificial intelligence leader Nvidia after the close of the stock market today.
Minutes of the Federal Reserve's Open Market Committee said policymakers "judged that the policy rate was likely at its peak for this tightening cycle." But they added, "Most participants noted the risks of moving too quickly to ease the stance of policy."
"They remained concerned that elevated inflation continued to harm households, especially those with limited means to absorb higher prices," the minutes added.
The 10-year Treasury yield wasn't fazed by the minutes and held at 4.32%.
Stock Market Today: Indexes Fade After Minutes Then Revive
The Dow erased losses to close up 0.1% while the benchmark S&P 500 index also inched higher 0.1%. The S&P 500 closed below the 5,000 level for its second straight day, but found support at the 21-dasy exponential moving average.
The tech-heavy Nasdaq trimmed losses to 0.3% and closed near its 21-day line, while the small-cap Russell 2000 shed nearly 0.5%.
Volume fell on the New York Stock Exchange and the Nasdaq compared with the same time on Tuesday, in preliminary numbers.
The Invesco QQQ Trust exchange traded fund sank 0.4%, while the Innovator IBD 50 ETF underperformed the major indexes and dropped 2.3%.
Nvidia Stock And Partner Vertiv Drop
Magnificent Seven member Nvidia pulled back nearly 2.9% in regular trading, but climbed 3.5% in extended trading after the company announced quarterly results after the close. EPS of $5.15 beat estimates for $4.59 and revenue of $22.1 billion surpassed estimates of $20.395 billion.
The IBD 50 and Leaderboard stock closed at its 21-day exponential moving average in the stock market today.
Vertiv Holdings ended the day down 5.6% in heavy volume. The sell-off came after Vertiv released better-than-expected earnings for the fourth quarter but a miss on sales. The digital infrastructure supplier lowered its first-quarter earnings and revenue outlook. Vertiv partners with Nvidia on an advanced cooling system project. Vertiv stock sank below its 21-day line, which Vertiv had held above since an Oct. 10 breakout.
Palo Alto Causes Tech Security Stocks To Tank
Palo Alto Networks gapped down 28.3% in heavy volume even though the security software stock reported January-quarter earnings and sales that topped views. The trouble came when the company lowered its fiscal 2024 revenue and billings outlook.
Palo Alto stock plunged under its 50-day moving average, flashing a sell signal, and closed just above its 200-day moving average. It was Palo Alto's largest drop on record, according to Dow Jones Market Data.
IBD 50 cybersecurity stocks CrowdStrike Holdings and Zscaler both fell hard. While CrowdStrike found support at its 50-day line, Zscaler stock remained well below that level and triggered a sell signal.
SentinelOne also tumbled in sympathy with Palo Alto in the stock market today, breaking its 50-day line in active trading. Internet security name Check Point Software plunged below its 50-day line also, giving investors a sell signal.
Other Stocks On The Move: Garmin Breaks Out
Garmin gapped up 8.8% after the fitness and navigation device maker topped fourth-quarter EPS and revenue forecasts. Shares broke out of a flat base with a 129.32 buy point and are in the 5% buy range reaching to 135.79. The stock and its weekly relative strength line reached 52-week highs, according to MarketSmith pattern recognition.
Global-e Online gapped down 16.9% in huge volume following the company's lower first-quarter revenue outlook. The cross-border e-commerce platform fell sharply below its 50-day and 200-day lines, triggering sell signals.
Sprout Social sold off hard after the social media platform operator gave mixed fourth-quarter results and a first-quarter sales outlook that missed views. The stock closed near the 50-day line after volatile trading.
Meanwhile, Wix gapped up 5.9% after the firm beat fourth-quarter profit and revenue estimates and gave a first-quarter and full-year 2024 sales forecast that topped analysts' views. Shares of the website development platform bounced off the 10-week moving average, putting shares in a buy area.
Apple Breaks Losing Streak
Apple closed up 0.4% after spending most of the day negative, and broke a six-day losing streak.
Fellow Magnificent Seven stock Amazon.com picked up steam in the final hour and gained 0.9%. It will replace Walgreens Boots Alliance in the Dow Jones Industrial Average at the start of trading Monday. Walgreens slumped 2.5% in the stock market today.
Stock Market Today Action: Solar Stock Flashes Sell Signal
SolarEdge Technologies gapped down 12.2% even though the company reported a smaller-than-expected loss for the fourth quarter and higher sales. But SolarEdge also predicted lower sales for the current quarter. The solar inverter maker plunged below its 50-day line, flashing a sell signal. The stock, however, was already in a long downtrend.
Meanwhile, Crispr Therapeutics climbed 4.7%. The maker of gene-editing drugs reported a surprise fourth-quarter profit and higher sales than expected. Shares are extended from the buy zone of a skewed cup base with a 76.97 buy point.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
