The Dow Jones Industrial Average and other major indexes managed to eke out slight gains during the final hour of trading Wednesday as investors shook off the Federal Reserve's demand for more progress on inflation. Despite the positive action, there were a handful of losers, including IBD 50 name Axon Enterprise, which sold off after a downgrade on the stock market today.
The Dow ended the day 0.1% higher and held above its 21-day exponential moving average. Stocks on the S&P 500 climbed 0.3%, locking in another record close Wednesday. And the Nasdaq composite inched further above the 20,000 level with a 0.1% gain.
Small caps improved, with the Russell 2000 paring its losses to 0.2% and hovering around its 50-day moving average.
Volume was lower on both the Nasdaq and the New York Stock Exchange vs. the same time Tuesday. Decliners beat advancers by around 4-to-3 on the NYSE and roughly 6-to-5 on the Nasdaq.
The 10-year Treasury yield dipped to 4.54%. Meanwhile, bitcoin climbed 2.3% to sit above the $96,100 level. And crude oil rose 0.6% to $72.31 a barrel Wednesday afternoon.
2:57 p.m. ET
Fed Wants To See More
After holding rates steady at the Fed's latest policy meeting in January, minutes from the latest Federal Open Market Committee meeting showed that Fed officials would like to see full employment and inflation come down before cutting rates. The minutes were released at 2 p.m. ET.
According to the CME FedWatch tool, 87% of futures traders expect the fed funds rate to stay in the 4.25%-4.5% range. The other 13% predict a 25-basis-point cut at the May meeting.
In other economic news, January housing starts came in at 1.366 million on an annualized rate vs. the 1.397 million expected. That was significantly lower than December's revised 1.515 million. But January permits of 1.483 million topped the 1.47 million projection and the 1.482 million revised December reading.
S&P 500 Hits New High, But These Three Leaders Dive
Stock Market Today: Axon Falls On Downgrade
In stocks, Axon Enterprise plummeted after Northcoast Research downgraded the Taser and nonlethal-weapon maker to a neutral from buy rating. Shares fell from the buy zone of a cup with handle with a 689.54 entry.
Further, the stock fell nearly 7% from the buy point, which triggers a sell signal. Axon stock undercut its 21-day line but found support at its 50-day line.
The stock is on track for its largest decrease since May 10, 2023, when it fell 15.05%, according to Dow Jones Market Data.
Also, Toll Brothers tanked after the homebuilder missed fiscal first-quarter profit and sales forecasts. Its first-quarter delivery and homes under contract numbers fell short of estimates.
The stock is on pace for its third straight losing week and is falling further below its 10-week moving average.
12:20 p.m. ET
Stock Market Today: Hims & Hers Rockets Higher
IBD 50 stock Hims & Hers surged and reached a new high on the stock market today. Shares soared in heavy trading on news the telehealth company acquired an at-home-testing lab facility, allowing it to offer blood testing capabilities to help identify the risk of disease and customize treatments.
The stock has doubled since it broke out of a cup base with a 35.02 buy point in late January and is far extended from the entry. The stock holds best-possible Relative Strength and Composite Ratings of 99 from Investor's Business Daily.
Occidental Petroleum, a holding of Warren Buffett's Berkshire Hathaway, jumped after the oil producer reported lower-than-expected sales for the fourth quarter but higher profit. The stock has been a laggard as seen in its dismal 18 RS Rating.
Berkshire Hathaway bumped up on the stock market today. Shares are nearing the 491.67 buy point of an early stage cup base.
RB Global popped and broke out of a cup base with a 99.79 entry. The online vehicle auction company handily beat fourth-quarter earnings and revenue estimates. Shares reached an all-time high and are extended from the base. In addition, its relative strength line hit a 52-week high as shown by the blue dot on its chart.
10:44 a.m. ET
Shift4 Plummets, Arista Plunges
IBD 50 name Shift4 Payments plummeted in heavy volume after the payment processing solutions firm beat fourth-quarter earnings with an in-line revenue forecast. But its full-year 2025 sales outlook disappointed.
Shift4 also announced it will acquire Global Blue, a specialty payments and technology platform focused on retail luxury brands, for $2.5 billion. Shares fell after hitting a record high Tuesday and are back below the 116.84 buy point of an undefined base. Global Blue stock catapulted more than 17% higher.
Arista Networks plunged even after the company beat fourth-quarter earnings and sales forecasts. But its full-year 2025 revenue outlook disappointed investors. The cloud networking stock fell deeper below its 50-day line, triggering a sell signal.
Meanwhile, Cadence Design Systems tumbled in huge volume even though the company beat fourth-quarter profit and sales estimates. Cadence, however, predicted full-year 2025 earnings and revenue that came in below estimates.
Shares fell further below the 50-day line and sliced through the 200-day moving average, triggering a sell signal. The electronic design automation software stock holds a mediocre 52 IBD Relative Strength Rating.
Stock Market Today: Stock Market News And Analysis
Earnings Stock Movers: Fitness Wearables Stock Surges
Garmin rallied in heavy trading after the fitness device maker topped fourth-quarter earnings and sales projections. The company also provided a full-year 2025 profit and revenue outlook above views. In addition, Garmin announced plans to increase its dividend 20%.
The stock topped the buy zone of a cup-with-handle base with a 222.97 buy point. But a more appropriate entry would be 238, the high of the first five-minute price bar.
Etsy plunged around 10% following the online marketplace's miss on fourth-quarter revenue estimates. The stock sank below its 50-day and 200-day lines, flashing a sell signal. It has a weak 41 Relative Strength Rating.
Outside of earnings moves, Palantir Technologies retreated sharply after reaching an all-time high of 125 Tuesday.
Finally, Meta Platforms fell again after dropping around 2.7% Tuesday, ending its 20-day winning streak, according to IBD MarketSurge.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
