Stock Market Gets Weighed Down On Earnings, Microsoft And Boeing Drop

The stock market climbed off morning lows, with the major indexes gaining in the last hour to the highs of the day. The Nasdaq posted the worst losses, as some big techs fell after earnings reports.




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The S&P 500 dropped 0.5% and Nasdaq shed 0.7% in afternoon trading. The Dow Jones Industrial Average cut its loss to 0.3% while the small-cap Russell 2000 gave back 0.3%. Volume on the NYSE was higher and Nasdaq trading was lower vs. the same time on Tuesday.

The Dow traded near its 50-day and 21-day exponential moving averages. The S&P 500 found support at its 200-day moving average. The Nasdaq hero above its 50-day line. The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) dropped 0.8%.

Crude oil rose 0.4% to $80.48 per barrel. The Energy Select Sector SPDR ETF (XLE) trimmed 0.4%. The benchmark natural gas contract dropped 5%, and is just above $3 per million British thermal units.

Bitcoin futures pulled back 1.8% to $22,655. The Innovator IBD 50 ETF (FFTY) was in line with the major stock market indexes, declining 0.4%.

European stock markets fell slightly, with the German DAX shedding 0.1%. The Paris CAC 40 faded 0.1% while London FTSE shaved off 0.2% to close out the trading day.

The 10-year Treasury note yield added 1 basis point to 3.47%.

Dow Gets Weighed Down After Negative Earnings Surprise

dow component Boeing (BA) climbed back from morning losses, up 0.1% in heavy volume after reporting a surprise Q4 loss. Analysts were looking for a profit. Shares are in the 20%-25% profit zone of a cup base with 173.95 buy point. The stock found support at its 21-day exponential moving average.

Telecommunications and media company AT&T (T) rose 6% after reporting increased wireless Q4 subscribers, but gave lower adjusted 2023 earnings guidance before the market open. The move put shares in the 5% buy zone (extending to 20.60) from a cup-with-handle base with 19.62 buy point.

Tesla (TSLA) gained 0.4% ahead of its Q4 earnings release today after the close.

Education services provider Stride (LRN) soared over 25% after reporting a beat on fiscal Q2 sales and earnings after Tuesday’s market close. The gap up sent shares above its 200-day moving average.

Intuitive Surgical (ISRG) gapped down 4.6% in heavy volume after reporting a miss on Q4 top and bottom lines. The maker of the da Vinci surgical system is an S&P 500 big loser today.

Kimberly Clark (KMB) fell 2.4% after reporting worse-than-expected Q4 sales numbers.

General Dynamics (GD) dropped 3.6% in heavy volume, despite reporting a beat on top and bottom Q4 numbers. The aerospace and defense stock dropped below its 200-day line.

Stock Market: Metals Stock Breaks Out

Royal Gold (RGLD) rose 2% and topped the 129.32 buy point of a long cup-with-handle base, according to MarketSmith pattern recognition. Shares of the precious metal royalty company are in a buy zone reaching to 135.79.

Cloud networking company Extreme Networks (EXTR) plunged over 17% in heavy volume. The company beat on top and bottom lines, but announced its CFO resigned. The drop sent shares below the 50-day moving average, triggering a sell signal.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.

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