The Dow Jones Industrial Average climbed while other major indexes struggled for gains in morning trades Wednesday, as stocks tried to recover from the previous session’s sell-off. One of the winners was Nvidia (NVDA), also looking to make a comeback on the stock market today in the wake of a steep drop.
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The Dow Jones index climbed 0.4%, leading the major indexes in Wednesday morning trades. Blue chips lost 0.8% on Tuesday.
The S&P 500 broke into positive territory with a meager gain in recent trades. The benchmark index also fell 0.8% Tuesday. The Nasdaq tried to join the party, but the tech-heavy index was off 0.2% in recent action.
Volume on the New York Stock Exchange and on the Nasdaq was lower compared with the same time on Tuesday.
Small caps on the Russell 2000 jumped 1.4% on the stock market today while the Innovator IBD 50 (FFTY) exchange traded fund edged 0.3% higher.
The yield on the benchmark 10-year Treasury note fell 3 basis points to 4%.
Artificial intelligence chip giant Nvidia added 1% Wednesday, a day after it took a near-5% body blow. Nvidia felt the pain when chip gear maker ASML (ASML) disappointed Wall Street with its third-quarter results and outlook Tuesday. That resulted in a rout for chip stocks.
While Nvidia fell sharply Tuesday, it held onto its short 10-day moving average. Nvidia is on three elite lists: the growth IBD 50, along with model portfolios IBD Leaderboard and IBD SwingTrader.
Dow Jones Stocks: Apple Retreats
Tech leaders underperformed on the Dow. Apple (AAPL) broke out briefly above a 237.23 buy point in intraday trades on Tuesday but ended up below that threshold.
Apple shares managed to stay above an alternate buy point at 233.09 through Tuesday’s close, but gave up that entry as well early Wednesday with a drop of more than 1%.
United Health (UNH) made up for some of Tuesday’s losses but remained below the 50-day moving average after a weak outlook sent the stock gapping down. Shares were in a flat base but they have since undercut it, according to IBD MarketSurge.
Stock Market Today: United Flies, Morgan Stanley Cruises
Earnings sent United Airlines (UAL) stock surging nearly 9% after the carrier reported third-quarter sales and earnings above views. Earnings of $3.33 per share on sales of $14.8 billion beat estimates of $3.17 per share earnings on sales of $14.77 billion.
Shares rallied past the 25% profit zone from a buy point of 49.67 ahead of earnings and headed 10% higher on Wednesday.
Morgan Stanley (MS) cruised through a buy zone from an entry at 109.11 after results pushed shares more than 7% higher. Revenue from deals and underwriting rose while trading activity in equity and fixed income also helped. Earnings rose to $1.88 per share on revenue of $27.4 billion.
Interactive Brokers (IBKR) sold off in volume that was tracking nearly 800% higher than average after sales and earnings decelerated in its fiscal third quarter. Shares reversed after a 20% gain from a 129.19 buy point.
Among other earnings movers, U.S. Bancorp (USB) entered a buy zone from an entry of 47.31. Synchrony Financial (SYF) moved through a buy zone that goes up to 55.30 from a 52.67 entry. And Citizens Financial (CFG) hovered around a 43.30 buy point.
Taiwan Semiconductor (TSM) is due to report third-quarter results Thursday. Shares hovered above a buy zone from a cup-with-handle entry at 175.45 on the stock market today.
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