Stock Market: Dow Jones Gives Back Minor Gains, AI Stocks Jump
Major stock indexes were unable to hold their gains in the final hour of trading on Wednesday, ending highs for the day. The three main indices are back in negative territory.
The Nasdaq composite lost 0.3% while the S&P 500 lost 0.2%. The Dow Jones fell 0.1%. The Russell 2000 Small Cap Index fell 0.6%.
Stock market and economic news: oil up and mortgages down
Volume on the NYSE and Nasdaq was lower compared to the same time on Tuesday.
The Invesco QQQ Trust, followed by the Nasdaq 100, fell 0.1%.
OPEC+ agreed to a production cut of 2 million barrels per day, the biggest cut since April 2020. Crude oil added 1.3% to $87.72 a barrel on the news. The SPDR Select Energy ETF (XLE) also edged up 2.1%.
The yield on 10-year Treasury bills reached 3.75%. Bitcoin lost 0.5% to $20,185.
The composite MBA Mortgage Demand Index for the week ended Sept. 30 fell 14.2% while the Buy Index fell 12.6%. The refinancing index lost 17.8%, down 86% from a year ago.
The national average for a 30-year fixed-rate mortgage is now above 6.8%, according to bankrate.com.
Stock market gain: WING shares take off
IBD Growth 250 share wing stop (WING) rose 6.9% as it traded above its 21-day exponential moving average and 50-day lines.
Potato products company Weston Lamb (LW) rose 4.2% on strong volume after hitting Q1 2023 sales estimates and beating earnings expectations. The company noted a 12% decline in sales volume, attributing it to slower demand from restaurants, hotels and sports venues.
LW shares broke off a flat bottom and reached the buy point of 83.39 on the MarketSmith chart. LW stock is trading above its 50-day moving average while the relative strength line has just reached a new high, as indicated by the blue dot on the weekly chart.
Murphy’s Oil (MUR) rose 3.8% and broke out of a cup with handle base, reaching the buy point of 41.60. The company announced a quarterly cash dividend of $0.25 to shareholders of record on November 14, payable on December 1. The oil explorer currently pays an annual dividend yield of 2.4%.
RPM International (RPM) rose 3.3% after posting a beating in first-quarter 2023 EPS and sales. Management gave a higher-than-expected second-quarter sales forecast, adding a boost to the stock.
Stocks are in a cup-and-handle basis with a buy point of 98.07 while the relative strength line has just reached a new high.
The company specializes in sealants, coatings and construction products. Major consumer brands include Rust-Oleum, Roto-Rooter and Kwik Seal.
Enphase Energy (ENPH) plunged 9.3% on heavy volume, continuing its previous largest one-day decline of 14.1%, in April 2021. Shares are trading below the 50-day line and the 21-day exponential moving average.
Enphase shares soared on July 27 after a better-than-expected second-quarter earnings report. The stock held gains through the end of September, rolling over after the Fed’s rate hike. Even so, the stock has gained 37.3% since the start of the year.
IBD 50: AI Company Pops, Storage Tank Staffing
The Innovator IBD 50 ETF (FFTY) sold 1%, falling more than major stock indices.
AI digital manufacturing company Xometry (XMTR) gained 4.3% on light volume, finding support at its 21-day line. The company has a high relative strength rating of 98.
Matador Resources (MTDR) gained 4.6% and sits in the 5% buy zone of a handle cup base with a buy point of 58.68.
World wrestling entertainment (WWE) slipped 0.5% after earlier gains and came off a cutting base, hitting a buy point of 75.33. Equities have recently built the right side of the base. The relative strength line reached a new high today.
PAA (APA) rose 3.5% after Raymond James lowered its price target to 70, but maintained its strong buy rating. This decision comes on top of yesterday’s 5% spread.
The company recently posted strong growth in quarterly earnings. Analysts now expect annual EPS growth of 137% in 2022 and 15% in 2023.
Mutual funds bought the shares, with 1,270 shares held in June, down from 1,014 in March and 932 in December.
Healthcare staffing company Cross Country Health Care (CCRN) fell 6% after Truist Securities downgraded the stock to a hold, with a price target of 36.
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