Sellers were back in the stock market Wednesday as early gains faded. The Dow Jones industrial average took the most heat, falling 1.1%, hurt by weakness in shares of Boeing (BA). Walt Disney (DIS) reversed slightly higher after the company announced a strategic reorganization.
X In afternoon trading, the S&P 500 fell 0.7%, while the Nasdaq composite eased 0.2%, buoyed by strength in FANG names Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Alphabet (GOOGL), which showed gains of 0.2% to 1.5%.
Nasdaq volume was tracking lower than Tuesday’s level at the same time. NYSE volume was on pace to be slightly higher. The S&P 500 marked its fifth distribution day Tuesday, falling 0.6% in higher volume.
The stock market was unfazed by news that President Trump plans to name conservative commentator and TV personality Larry Kudlow as his top economic advisor, replacing Gary Cohn.
Shares of Boeing flashed a sell signal, falling nearly 3% and giving up support at the 50-day moving average in heavy volume. Recent steel tariffs announced by President Trump will likely result in higher input costs for Boeing.
Shares of Walmart (WMT) were down 0.7% on news it’s expanding home grocery delivery to 100 metro areas from six cities currently. Shares of Walmart have been hit hard after a disappointing earnings report Feb. 20. The stock has been holding above the 200-day moving average, a longer-term support level, for about two weeks.
Results from a couple of high-profile technology names are due Thursday after the close. Shares of Leaderboard name Adobe Systems (ADBE) eased 0.4%, while Broadcom (AVGO) fell 0.7%. Adobe isn’t actionable as it sits well-extended from a 186.37 buy point. Broadcom, meanwhile, has been volatile after President Trump nixed the company’s plans to acquire Qualcomm (QCOM).
In economic news, the latest reading on wholesale inflation was tame as the Producer Price index rose 0.2% in February, in line with views. The core rate, which excludes food and energy costs, also matched expectations at 0.2%. Year over year, prices were up 2.8%, with core prices up 2.5%.
Meanwhile, February retail sales fell 0.1% vs. expectations for a 0.4% increase. Excluding autos, sales rose 0.2%, also below the consensus estimate for a 0.4% gains.
In the stock market today, new-issue MongoDB (MDB) jumped nearly 5% to 39.60. The database software firm reported an adjusted loss of 53 cents a share, but Wall Street seemed to focus more on a 50% jump in sales to $45 million. Annual losses are forecast for fiscal 2019 and 2020, although the stock continues to hold gains smartly after a breakout from a base with a 34.10 buy point.
Inside the IBD 50, PayPal (PYPL) cleared an asymmetrical cup-with-handle pattern with an 82.27 buy point. Shares rose 3% to 82.65. Volume was heavy early but was only about 30% above average in afternoon trading.
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