As Earnings Roll In; Housing Starts Disappoint
KOENIG10:58 AM ET 10/18/2023
The stock market got off to a rough start Wednesday, with all the major indexes posting losses in the first hour of trading. Meanwhile, September housing starts improved from the prior month, but fell short of expectations.
The Commerce Department said September housing starts jumped 7% to an annualized rate of 1.358 million, up from a revised 1.269 million in August but below predictions for 1.394 million. Building permits, which provide a rough gauge to future building activity, dropped 4.4% to a rate of 1.473 million in September. Higher mortgage rates are weighing on the housing market.
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The Nasdaq dipped 0.4% in the stock market today. The Dow Jones Industrial Average dropped 0.3%, while the S&P 500 trimmed 0.4%. Meanwhile, the small-cap Russell 2000 pulled back 1.2%. The Nasdaq and S&P 500 held below their 50-day moving averages, while the Dow hovered above its 200-day line.
Volume rose on the New York Stock Exchange and the Nasdaq, compared with Tuesday's trading at the same time of day.
The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, shed 0.3%. The Innovator IBD 50 ETF (FFTY) retreated 0.4%.
Also, the yield on the benchmark 10-year Treasury note added 2 basis points to 4.87%.
Stock Market Action: Nvidia Feels More Pain
Nvidia (NVDA) pulled back another 2.7% Wednesday on top of Tuesday's 4.7% drop, which pushed the maker of artificial intelligence chips below the 50-day line. On Tuesday, the U.S. said it would restrict AI chip exports to China. That prompted Citigroup to lower its price target on Nvidia to 575 from 630, but it maintained its buy rating. Nvidia is an IBD Leaderboard and IBD 50 stock.
Shares of Dutch chip-equipment maker ASML (ASML) sank nearly 4% after the company reported mixed third-quarter results and warned of flat 2024 sales. Shares fell further below the 50-day line.
United Airlines (UAL) tumbled more than 7% as the company filed a positive earnings report but lowered its fourth-quarter earnings outlook due to the Israel-Hamas war. Shares are well below the 50-day line and nearing its 52-week low. UAL stock was a big loser in the S&P 500 Wednesday.
Leaderboard and IBD 50 component Tesla (TSLA) dipped 1.3% ahead of its third-quarter earnings report, which is due after the stock market close today. Analysts expect Tesla's per-share earnings to drop considerably on increasing revenue.
Shares found support after testing the 50-day line. The electric-vehicle maker is in a cup-with-handle base with a 278.98 buy point. Investors could use the Oct. 10 high of 268.94 as an early entry.
Other Stock Movers: These Dow Stocks Rise
Dow Jones stock Procter & Gamble (PG) climbed 3% higher following the company's fiscal first-quarter earnings and sales that came in better than expected. The consumer goods stock retook its 200-day moving average. But it remained below its 50-day line after tight trading near the bottom of a flat base.
Dow Jones component Travelers (TRV) stock gained 1.7% after the insurance company reported a huge miss on its third-quarter profit estimates and higher revenue. The property and casualty insurer cited larger catastrophic losses from wind and hail storms. The stock is trading below its 200-day line.
Interactive Brokers (IBKR) gapped down nearly 4% even after the online broker reported higher-than-expected profit and sales for the third quarter. Shares undercut the 200-day line in stock market action.
Financial services stock Morgan Stanley (MS) tumbled more than 6% after the company reported lower-than-expected earnings and higher sales for its third quarter, but revenue lagged the year-ago period.
J.B. Hunt Transport Services (JBHT) gapped down more than 6% after the transportation company reported a miss on earnings and sales projections. The stock sank below its 50-day and 200-day lines. The big move below the 50-day line triggered a sell signal.
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The Nasdaq dipped 0.4% in the stock market today. The Dow Jones Industrial Average dropped 0.3%, while the S&P 500 trimmed 0.4%. Meanwhile, the small-cap Russell 2000 pulled back 1.2%. The Nasdaq and S&P 500 held below their 50-day moving averages, while the Dow hovered above its 200-day line.
Volume rose on the New York Stock Exchange and the Nasdaq, compared with Tuesday's trading at the same time of day.
The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, shed 0.3%. The Innovator IBD 50 ETF (FFTY) retreated 0.4%.
Also, the yield on the benchmark 10-year Treasury note added 2 basis points to 4.87%.
Stock Market Action: Nvidia Feels More Pain
Nvidia (NVDA) pulled back another 2.7% Wednesday on top of Tuesday's 4.7% drop, which pushed the maker of artificial intelligence chips below the 50-day line. On Tuesday, the U.S. said it would restrict AI chip exports to China. That prompted Citigroup to lower its price target on Nvidia to 575 from 630, but it maintained its buy rating. Nvidia is an IBD Leaderboard and IBD 50 stock.
Shares of Dutch chip-equipment maker ASML (ASML) sank nearly 4% after the company reported mixed third-quarter results and warned of flat 2024 sales. Shares fell further below the 50-day line.
United Airlines (UAL) tumbled more than 7% as the company filed a positive earnings report but lowered its fourth-quarter earnings outlook due to the Israel-Hamas war. Shares are well below the 50-day line and nearing its 52-week low. UAL stock was a big loser in the S&P 500 Wednesday.
Leaderboard and IBD 50 component Tesla (TSLA) dipped 1.3% ahead of its third-quarter earnings report, which is due after the stock market close today. Analysts expect Tesla's per-share earnings to drop considerably on increasing revenue.
Shares found support after testing the 50-day line. The electric-vehicle maker is in a cup-with-handle base with a 278.98 buy point. Investors could use the Oct. 10 high of 268.94 as an early entry.
Other Stock Movers: These Dow Stocks Rise
Dow Jones stock Procter & Gamble (PG) climbed 3% higher following the company's fiscal first-quarter earnings and sales that came in better than expected. The consumer goods stock retook its 200-day moving average. But it remained below its 50-day line after tight trading near the bottom of a flat base.
Dow Jones component Travelers (TRV) stock gained 1.7% after the insurance company reported a huge miss on its third-quarter profit estimates and higher revenue. The property and casualty insurer cited larger catastrophic losses from wind and hail storms. The stock is trading below its 200-day line.
Interactive Brokers (IBKR) gapped down nearly 4% even after the online broker reported higher-than-expected profit and sales for the third quarter. Shares undercut the 200-day line in stock market action.
Financial services stock Morgan Stanley (MS) tumbled more than 6% after the company reported lower-than-expected earnings and higher sales for its third quarter, but revenue lagged the year-ago period.
J.B. Hunt Transport Services (JBHT) gapped down more than 6% after the transportation company reported a miss on earnings and sales projections. The stock sank below its 50-day and 200-day lines. The big move below the 50-day line triggered a sell signal.
The Nasdaq dipped 0.4% in the stock market today. The Dow Jones Industrial Average dropped 0.3%, while the S&P 500 trimmed 0.4%. Meanwhile, the small-cap Russell 2000 pulled back 1.2%. The Nasdaq and S&P 500 held below their 50-day moving averages, while the Dow hovered above its 200-day line.
Volume rose on the New York Stock Exchange and the Nasdaq, compared with Tuesday's trading at the same time of day.
The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, shed 0.3%. The Innovator IBD 50 ETF (FFTY) retreated 0.4%.
Also, the yield on the benchmark 10-year Treasury note added 2 basis points to 4.87%.
Stock Market Action: Nvidia Feels More Pain
Nvidia (NVDA) pulled back another 2.7% Wednesday on top of Tuesday's 4.7% drop, which pushed the maker of artificial intelligence chips below the 50-day line. On Tuesday, the U.S. said it would restrict AI chip exports to China. That prompted Citigroup to lower its price target on Nvidia to 575 from 630, but it maintained its buy rating. Nvidia is an IBD Leaderboard and IBD 50 stock.
Shares of Dutch chip-equipment maker ASML (ASML) sank nearly 4% after the company reported mixed third-quarter results and warned of flat 2024 sales. Shares fell further below the 50-day line.
United Airlines (UAL) tumbled more than 7% as the company filed a positive earnings report but lowered its fourth-quarter earnings outlook due to the Israel-Hamas war. Shares are well below the 50-day line and nearing its 52-week low. UAL stock was a big loser in the S&P 500 Wednesday.
Leaderboard and IBD 50 component Tesla (TSLA) dipped 1.3% ahead of its third-quarter earnings report, which is due after the stock market close today. Analysts expect Tesla's per-share earnings to drop considerably on increasing revenue.
Shares found support after testing the 50-day line. The electric-vehicle maker is in a cup-with-handle base with a 278.98 buy point. Investors could use the Oct. 10 high of 268.94 as an early entry.
Other Stock Movers: These Dow Stocks Rise
Dow Jones stock Procter & Gamble (PG) climbed 3% higher following the company's fiscal first-quarter earnings and sales that came in better than expected. The consumer goods stock retook its 200-day moving average. But it remained below its 50-day line after tight trading near the bottom of a flat base.
Dow Jones component Travelers (TRV) stock gained 1.7% after the insurance company reported a huge miss on its third-quarter profit estimates and higher revenue. The property and casualty insurer cited larger catastrophic losses from wind and hail storms. The stock is trading below its 200-day line.
Interactive Brokers (IBKR) gapped down nearly 4% even after the online broker reported higher-than-expected profit and sales for the third quarter. Shares undercut the 200-day line in stock market action.
Financial services stock Morgan Stanley (MS) tumbled more than 6% after the company reported lower-than-expected earnings and higher sales for its third quarter, but revenue lagged the year-ago period.
J.B. Hunt Transport Services (JBHT) gapped down more than 6% after the transportation company reported a miss on earnings and sales projections. The stock sank below its 50-day and 200-day lines. The big move below the 50-day line triggered a sell signal.
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People have a great day & don’t let the noise from dark places bother you cause haters are going to hate regardless ,GoGooooooCOOP -GLTA-Ts
