The major indexes closed nearly flat after reversing lower Tuesday, while small caps led the stock market. Investors appeared to be biding time ahead of the Federal Reserve's rate decision Wednesday afternoon.
The Dow Jones Industrial Average gave back the day's gains and finished a fraction lower.
The S&P 500 closed with a minimal gain, barely enough to stretch its win streak to seven days. The Nasdaq composite edged 0.2% higher after being up as much as 1.1% in the stock market today.
But the small-cap Russell 2000 outperformed with a 0.7% increase even as it closed well off session highs. The Innovator IBD 50 ETF climbed nearly 0.7%.
Volume was higher on the NYSE and on the Nasdaq, according to early data.
Despite the downward reversal, breadth remained positive. On the Nasdaq exchange, rising stocks topped falling issues by around 9-to-7. NYSE gainers beat loser by more than 3-to-2.
Stock Market Today: Nvidia Below Critical Moving Average
IBD 50 and Leaderboard stock Nvidia reversed lower 1.1% and remained below its 50-day moving average for a second day.
3:01 p.m. ET
Energy Stock Hits New High
Synchrony Financial jumped 3.5% and retook its 50-day line on the stock market today. The credit card provider is in an undefined base with a 52.67 buy point.
GE Vernova rose 2.6% and hit a record high. Shares are extended from a double-bottom-like base with a 184.33 buy point. Tuesday's move came after BofA Securities upgraded the alternative-energy stock to buy from neutral and raised its price target to 300 from 200. In addition, RBC Capital lifted its price target to 246 from 192 and maintained an outperform rating.
Accenture sank more than 4% and fell back below its 345.54 buy point. The stock also fell below its 21-day exponential moving average. The company is postponing staff promotions until June, Bloomberg reported.
1:34 p.m. ET
IBD 50 Stock Revisits Buy Zone
AppLovin added an additional 5% to its torrid run, and is on pace for its fifth straight gain of more than 3%. Shares are extended from a V-shaped cup base with a 91.91 buy point.
UBS analyst Chris Kuntarich upgraded AppLovin to buy from neutral and raised the price target to 145 from 100. Improving revenue growth drivers should lead to a cycle of positive estimate revisions and multiple expansion, the analyst noted Tuesday.
IBD 50 stock Interactive Brokers forged ahead 2.3% as brokerage stocks are back in favor. The stock is back in the buy zone of a V-shaped cup base with a 129.19 buy point. Shares breached its 129 resistance level after three prior attempts. The online brokerage and electronic markets maker reached a record high on the stock market today.
Rhythm Pharmaceuticals jumped 9.7% in huge volume and is now extended from a 50.22 handle buy point. The move came after JPM Securities initiated coverage on the stock with an outperform rating and a 64 price target.
12:09 a.m. ET
Visa Hits New High, Buy Point
Dow Jones stock Visa edged up 0.7% and broke out of a long, flat base with a 290.96 buy point. The stock is in the buy zone up to 305.51. Visa has gained more than 15% since the stock bottomed on July 25. The payment processor reached a 52-week high on the stock market today, though volume was weak.
Ireland-based Flutter Entertainment popped 2.2% and broke out of a long, erratic base with a 226.40 buy point. The FanDuel parent is in a buy range to 237.72. Flutter will acquire Italian company Snaitech for around $2.56 billion. The purchase is expected to expand its international exposure and is scheduled to close by the second quarter of 2025.
Hewlett Packard Enterprise bolted 5.7% higher after BofA Securities upgraded the stock to buy from neutral and lifted its price target to 24 from 21. The stock reclaimed its 200-day moving average on the stock market today. It is on pace for a fifth straight gain.
10:45 a.m. ET
Economic News: The Fed Is Up, Retail Sales Rise
In the bond market, the 10-year Treasury yield rose two basis points to around 3.64%.
The Federal Reserve meeting will include the Fed's economic projections and a decision on the fed funds rate announced at 2 p.m. Wednesday. Fed Chair Jerome Powell's news conference will follow.
The central bank is expected to announce its first rate reduction since it cut its key rate to almost zero in March 2020 amid the Covid pandemic.
Tuesday morning, the CME FedWatch survey of bond traders showed a 65% probability that the Fed will cut the fed funds rate by half a percentage point to a 4.75%-5% range and a 35% chance of quarter-point cut. The rate has been in the 5.25%-5.50% range for more than a year.
In other economic news, the U.S. Bureau of the Census' report on August retail sales rose 0.1% vs. the 0.3% dip economists expected and lagged the revised July unusually high increase of 1.1%.
The Federal Reserve's August industrial production report showed it increased 0.8% and topped the 0.1% rise expected. It improved over a revised 0.9% drop in July. And August manufacturing output increased 0.9% vs. the flat reading that economists forecast, coming in much stronger than the revised 0.7% decline in July.
Stock Market Today:
IBD 50 and Leaderboard stock Nvidia crept up 0.6% and hovered around its 50-day moving average, seeking support.
Palantir Technologies reversed lower 0.5% after initially climbing in the stock market today. The IBD Big Cap 20 stock could break a seven-day win streak. Shares reached a 52-week high on the stock market today before retracing.
Corcept Therapeutics broke out of a cup base with a 39.75 buy point and is in the 5% buy zone up to 41.74.
Exelixis broke out of a flat base with a 27.53 buy point and is in a buy range up to 28.91.
Futures: Fed Rate Cut Looms; What To Expect
Dow Jones Stock Intel On The Move
Dow Jones stock Intel advanced 5% following news it plans to spin off its foundry business into a subsidiary. It also announced it expanded its partnership with Amazon.com's Amazon Web Services. The move follows Monday's 6.3% jump on news of a $3 billion federal funding to Intel to make chips for the Pentagon. Intel stock is down a whopping 57% so far this year.
Amazon.com, a Magnificent Seven stock, progressed around 2% on the stock market today. The e-commerce giant announced its next Prime Big Deal Days will be Oct. 8 and 9.
Another Dow stock, Microsoft, advanced 1.7% after the company announced it raised its dividend by 10% and also approved a $60 billion stock buyback plan. The Magnificent Seven stock is building the right side of a cup base with a 468.35 buy point. The stock reclaimed its 50-day line on Thursday.
Other Stock Movers: Shopify Gets An Upgrade
Outside the Dow, Dell Technologies bumped up 1% after Mizuho initiated coverage of the stock with an outperform rating and a 135 price target.
Shopify rose 1.2% after Redburn Atlantic upgraded the commerce platform to a buy rating from neutral with a 99 price target. Shares have struggled and lost 5% so far this year. It holds a mediocre 57 IBD Relative Strength Rating.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
