The stock market worsened with major indexes increasing losses and near the lows of the day in afternoon trading on Wednesday. August durable goods numbers gave investors some good news, but not enough to turn selling into buying.
The Nasdaq edged down 0.5% in afternoon stock market action. The Dow Jones Industrial Average inched lower 0.8% and the S&P 500 pulled back 0.6%
The major indexes remain deep below their 50-day moving averages with the Dow Jones now violating its 200-day moving average. The Nasdaq and S&P 500 have also trended toward their 200-day lines.
The small-cap Russell 2000 progressed 0.8%, but sits well below its 200-day line.
Volume rose on the NYSE and Nasdaq vs. the same time on Tuesday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF trimmed 0.5%. The Innovator IBD 50 ETF fared better than the major indexes and climbed 1%.
The price of crude oil futures rose to lift the SPDR Select Energy ETF 1.8%.
Economic Data Rolling In
August new orders for durable goods rose 0.2% vs. the dip of 0.3% expected and showed considerable improvement over July's revised 5.6% drop. Excluding transportation, orders increased 0.4% vs. the 0.2% consensus.
The benchmark 10-year Treasury yield added 6 basis points to 4.62% and is still near levels not seen since 2007.
Investors await inflation data on Friday with the August personal income and outlays report from the Commerce Department, which includes an important measure of inflation.
Today's Investors Intelligence Advisors Sentiment report says the number of bulls fell to 43.7% from 48.6% a week ago. The reading is just above August's low of 43.1%, which was the lowest since late winter, according to the report.
Stock Market Action: Pool Equipment Stock Rallies
Hayward Holdings gapped up over 8% in heavy volume, on news that it will be added to the S&P SmallCap 600 index on Friday before the market opens. The swimming pool equipment stock is in a flat base with a 15.21 buy point.
HAYW stock reclaimed its 50-day line on the jump. Its relative strength line hit a 52-week high as shown by the blue dot on the MarketSmith weekly chart.
Coal mining and processing stock Arch Resources rose over 5% in heavy volume and hit the 163.75 buy point of a cup-with-handle base. The handle has a shallow 5% depth. The stock is at the high end of the 5% buy zone, which reaches to 171.94. Remember IBD shows the stock market in correction and breakouts have a tendency to fail in a correction. Shares hit a 52-week high on Wednesday.
IBD 50 stock Tidewater soared over 5% as energy stocks outperformed with the rise in oil prices. The offshore energy transport stock is nearing its 52-week high set on Sept. 12.
Stocks Seeing Action
Online learning stock Stride eased larger gains, now up 0.3%. Shares tapped the 45.48 buy point of a consolidation.
Costco Wholesale erased early losses and gained 1.1% after the retailer reported higher-than-expected August-ended quarterly earnings late Tuesday. The membership warehouse stock is in a flat base with a 571.16 buy point.
IBD Leaderboard stock Meta Platforms reversed course and dropped 0.3% and is in a shallow cup-with-handle base with a 312.87 buy point. Shares are trading tightly in light volume, according to MarketSmith pattern recognition.
The Facebook and Instagram parent holds its Meta Connect conference Wednesday and Thursday. It's expected to showcase its Quest 3 virtual-reality headset and new generative AI tools.
Amazon.com lost 0.9% after Tuesday's 4% decline. The Federal Trade Commission and 17 states on Tuesday filed an antitrust lawsuit against Amazon.com.
Market Rallies Off Lows; Tesla Falls On Analyst Warning
Stock Market Movers
MillerKnoll gapped up nearly 28% in huge volume after the furniture company reported better-than-expected August-quarter EPS and sales.
Toy maker Mattel popped 3% on news that Morgan Stanley initiated coverage with an overweight rating and a 27 price target. Shares are in a flat base with a 22.64 buy point. The stock reclaimed its 50-day line with Wednesday's move.
XPO increased 0.8% after Evercore ISI Group upgraded the transportation and logistics stock to outperform from in line and raised its price target to 79 from 72. Shares are in a flat base with a 76.77 buy point, which is also its 52-week high from Aug. 4.
Jeans and apparel company Levi Strauss gained 0.6%, after TD Cowen initiated coverage on the stock with an outperform rating and a 16 price target. Shares are near a 52-week low and have lost around 15% this year.
EV charging station operator ChargePoint Holdings rallied 3.4% in heavy volume, after UBS initiated coverage on the stock with a buy rating and a 9 price target.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
