Major indexes showed mild, mostly positive action during the first hour of trading in the stock market today as investors await a Federal Reserve decision on interest rates at 2 p.m. ET and commentary by Fed Chair Jerome Powell on the outlook for monetary policy.
At around 10:45 a.m. ET, the Nasdaq composite, which has gained a robust 7.6% since its sell-off on Nov. 15, reversed higher 0.3%. The index hit an early-session low of 20,041. Watch to see if the index can close above 20,000 for the third straight session.
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The S&P 500 climbed 0.3% Wednesday morning, while the Dow Jones Industrial Average rose 0.5%, aiming to crack a nine-session losing streak. Notice on a daily chart how the blue chip gauge is testing buyers at the 50-day moving average.
At least seven of the 20 Dow industrial components gained two points or more, including embattled UnitedHealth (UNH), a member of the IBD Long-Term Leaders.
Small caps followed along with large caps, as the Russell 2000 moved 0.2% higher. Volume was tracking lower vs. the same time Tuesday on both main exchanges.
The stock market today is trying to rebound after logging a distribution day in the prior session. Distribution points to unusually heavy professional selling. However, the indexes fell moderately after a string of all-time highs lately. For more about Tuesday’s critical action, read Tuesday’s The Big Picture.
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Meanwhile in tech land, Broadcom (AVGO) held its recent explosive gains nicely. Shares edged mildly lower for a second straight session after bolting more than 35% higher over two days following a good fiscal fourth quarter in which earnings and sales lifted more than 25%, with a solid outlook.
Meanwhile, leaders in the stock market today moved in mixed fashion.
Heico (HEI), a stock market leader, fell more than 5% in fast turnover despite reporting good results and keeping its semiannual dividend at 11 cents per share. The stock punched down through its 50-day moving average and undercut the low of a recent flat base. That triggered a sell signal.
Heico, a major components maker in the aerospace industry, posted an 8% gain in sales to $1.01 billion, while earnings jumped 34% to 99 cents a share as operating margin improved.
Birkenstock Rallies On Quarterly Results
Birkenstock (BIRK) gapped up on a solid revenue beat for the October-ended quarter and at one point rallied more than 9% for the week.
Known for its namesake sandals and clogs, Birkenstock is rapidly forming the right side of a base.
The shoe stock rose on encouraging fundamentals, as revenue strode sharply higher. Amid a multitude of forex-adjusted sales figures, MarketSurge data shows sales at $507.5 million, up 28%. Analysts on consensus expected $460 million. Earnings came in at 32 cents a share on an adjusted basis, up an astounding 128% vs. a year earlier and 6 cents above views. Gross margin rose 320 basis points vs. the prior quarter to 59.5%.
Also in the retail space, Ollie’s Bargain Outlet (OLLI) continued its recent winning ways. Shares rose 2% on a Wall Street upgrade and it has now jumped more than 15% past a handle entry at 102.83.
Elsewhere in the stock market today, Netgear (NTGR) spiked more than 14% on reports that the U.S. government is considering a ban of rival Chinese-built home internet routers on suspicion of hacking and privacy concerns. San Jose, Calif.-based Netgear had already gotten extended past the 5% buy zone after a Nov. 1 breakout from a seven-week cup with handle that displayed a 22.24 proper buy point.
Beyond The Stock Market Today
The yield on the key U.S. Treasury 10-year bond seemed to act like it’s pinned near 4.40%. Earlier this year, the yield peaked at 4.73%.
Crude oil futures on the NYMEX rose more than 1% to $73 per barrel.
Please follow Chung on X/Twitter: @saitochung and @IBD_DChung
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