The Dow Jones Industrial Average and other major indexes faced a downturn in morning trading on Wednesday. Investors were discounting Nvidia (NVDA) ahead of its earnings report, which was due after the close. Meanwhile, bitcoin saw a significant rise amid the ongoing cryptocurrency Trump rally on the stock market.
Key Market Movements
Amazon.com (AMZN) was one of the biggest losers on the Dow, while UnitedHealth Group (UNH) led the index. Overall, the Dow Jones stocks dipped by 0.1%. The Nasdaq pared earlier losses to 0.6% after a 1% gain on Tuesday. The S&P 500 slipped 0.5%, and both major indexes were testing their 21-day moving averages. Small caps on the Russell 2000 fell 0.3% and were also retesting their 21-day moving average. The Innovator IBD 50 (FFTY) exchange traded fund declined 0.5% on the stock market today. Volume was higher on both the Nasdaq and the New York Stock Exchange compared to the same time on Tuesday. The yield on the 10-year Treasury note increased by 3 basis points to 4.41%.Bitcoin rose above $94,000 for the first time ever. Traders are closely watching cryptocurrencies as President-elect Donald Trump transitions back to the White House. Among cryptocurrency stocks, Coinbase (COIN) dropped more than 1%, but MicroStrategy (MSTR) jumped nearly 15%.Retailers in Focus
Retailers were in a state of flux as Target (TGT) bore the brunt of investor wrath, plunging more than 21% in recent trades. The discount superstore chain missed both earnings and sales expectations in the third quarter. Conversely, Williams-Sonoma (WSM) soared more than 26% on its earnings and reached a 52-week high. The San Francisco-based retailer's earnings of $1.96 per share exceeded analyst estimates of $1.77 per share. TJX (TJX) fell more than 1%. Although the company's third-quarter report exceeded expectations, projections for the current quarter disappointed analysts. Other retail earnings are due, with BJ's Wholesale (BJ) and Ross Stores (ROST) reporting on Thursday.Tech Stocks and AI
Among tech stocks, artificial intelligence play Keysight Technologies (KEYS) surged after its fourth-quarter results beat estimates. The electronics test gear maker provided a sales and earnings outlook for the first quarter that was above expectations. Shares cleared the 50-day moving average. Nvidia pared losses while in a buy zone from an entry of 140.76. Third-quarter results are due at market close. The AI chip leader's outlook for its Blackwell chip and Chief Executive Officer Jensen Huang's comments are attracting significant attention. Nvidia stock is on the IBD Leaderboard, IBD SwingTrader, and IBD 50. It holds a Composite Rating of 97 and an EPS Rating of 99. Its Relative Strength Rating is also an impressive 97. Palo Alto Networks (PANW) is scheduled to report at market close. Shares of the cybersecurity leader are in a buy zone from a 380.84 buy point. Snowflake (SNOW) is also due to report later Wednesday.Among Magnificent Seven stocks, Alphabet (GOOGL) is approaching a buy point of 182.02 in a cup-with-handle base, according to IBD MarketSurge. Meta Platforms (META) has formed a flat base with a buy point of 602.95. Apple (AAPL) is in a consolidation with a buy point of 237.49. Tesla (TSLA) is above a 25% profit zone from a buy point of 264.86. Microsoft (MSFT) is below the 50-day moving average but within a base with a buy point at 468.35. Amazon is near a buy zone from a 201.20 entry but lost ground on the stock market today.Please follow VRamakrishnan on X/Twitter for more news on the stock market today.