The Dow Jones Industrial Average rose despite an inflation warning, Federal Reserve Chairman Jerome Powell. Apple (AAPL) was a top blue chip. Shares of Tesla (TSLA) fell after news that it is closing a Silicon Valley office. Bed Bath & Beyond (BBBY) collapsed on profit.
A few stocks tried to break out despite the mixed action. General Mills (GIS) passed a buying point on earnings, while AstraZeneca (AZN) also tested an entry.
X
Volume was mixed. According to preliminary data, it was higher on the Nasdaq but lowered on the New York Stock Exchange.
The benchmark 10-year government bond yield fell by 11 basis points to 3.1%. West Texas Intermediate crude fell 2.2% to just over $109 a barrel.
Fed Chair Powell issues inflation warning.
Federal Reserve Chairman Jerome Powell warned of inflation at the European Central Bank’s forum on central banking.
He said there is “no guarantee” that the Fed will be able to tame the problem of rising prices without hurting the job market.
US stock market overview today
Index Symbol Price Gain/Loss % Change Dow Jones (0DJIA) 31027.92 +80.93 +0.26 S&P 500 (0S&P5) 3818.70 -2.85 -0.07 Nasdaq (0NDQC ) 11177.89 -3.65 -0.03 Russell 2000 (IWM) 170.65 -1.79 -1.04 IBD 50 ( FFTY) 26.90 -0.34 -1.25 Last update: 16:30 ET 29/6/2022
Powell also warned that achieving a soft landing is getting harder, though he believes it’s still possible.
“It’s gotten harder,” he said. “The trails have gotten narrower.”
Meanwhile, US gross domestic product was revised downward in the third estimate for the first quarter. It was changed to a 1.6% year-over-year decline from the previous estimate of a 1.5% decline. This is the first economic contraction since the second quarter of 2020. Analysts had not expected a revision.
Personal consumption expenditure was also revised downwards to a growth rate of 1.8% from an earlier estimate of a 3.1% gain. A revision was not expected.
Nasdaq Firm as Small Caps Suffer
The Nasdaq ended the day fractionally negative. Paychex (PAYX) was the biggest laggard, with a 4.2% decline.
The S&P 500 also closed lower, this time down 0.1%. Carnival (CCL) was a big laggard, falling 14.1% as cruise stocks struggled.
Sectors of the S&P 500 were mixed. Healthcare and consumer staples were the best-performing sectors. Energy and real estate were the biggest laggards.
However, small caps took a beating from the bears, with the Russell 2000 falling 1%.
The bears tore growth stocks apart, with the Innovator IBD 50 ETF (FFTY) closing the day at 1.3%.
Dow Jones Today: Apple Stock, McDonald’s Lead
The Dow Jones Industrial Average bucked the trend by gaining about 80 points or 0.3%.
Apple stocks were one of the top components on the Dow Jones today. It ended the session with 1.3%.
MarketSmith’s analysis shows it remains below the 50-day moving average despite the gains.
Fellow tech giant Microsoft (MSFT) also fared well, increasing by 1.5%.
But it was McDonald’s (MCD) made the meatiest move on the Dow Jones today, up 2%.
Tesla stock dropped during the closing.
Tesla shares ended the day lower after reports the company is closing a Silicon Valley office.
Shares fell after it emerged that the company was closing a facility in San Mateo, California, where employees worked on its Autopilot systems. An estimated 200 jobs will be lost.
The news comes after CEO Elon Musk previously revealed the company wants to cut about 10% of its wages, even if it hires more production workers per hour. Tesla once relocated some Autopilot data workers to its Palo Alto, California, location. It also gathered data from annotation teams in Buffalo, NY.
Cutting costs will be an important goal for the EV giant. Musk previously described the company’s new factories in Berlin, Germany, and Austin, Texas, as “giant money-making furnaces.”
Tesla shares ended the day but were still down 0.4%. Former Leaderboard stock remains well below its 50-day moving average. It is near the lows of a consolidation pattern with entries of 1,208.10.
BBBY Stock Dips on Profit, Management Shake-up
Bed Bath & Beyond collapsed after the company presented a disastrous earnings report.
The homeware retailer lost $2.83, while analysts had expected a loss of $1.39. Revenue of $1.46 billion was also lower than expected. The company also announced that CEO Mark Tritton has fallen on his sword. He will be replaced on an interim basis by Sue Gove, an independent director on the board of directors.
“I am stepping into this role, and I am aware of the macroeconomic environment,” she said.
The retail giant ended the day at nearly 24%. It sold in huge volumes. According to MarketSmith’s data, it sits 50% below the 50-day moving average.
Sick rally seeks direction; Inflation, job data due
Outside of Dow Jones: These Stocks Test Submissions
With the current uptrend under pressure, investors should be wary of breakouts. Nevertheless, several stocks made bullish moves on Wednesday.
General Mills broke out of a cup base with an ideal buy point of 74.09.
Sales also exceeded Wall Street expectations. It got a boost after posting a win slash. Earnings per share rose 23% to $1.12 per share.
The relative strength line hit a new high, and the stock spiked heavily. Its overall performance is very strong, with an IBD Composite Rating of 87 out of 99. It ranks in the top 6% of the stock in terms of price performance over the past 12 months.
AstraZeneca broke out from a double bottom base but closed under the entrance. The ideal entry point here is 67.50.
AZN is back above the 50-day moving average as the relative strength line hits new highs. Overall performance is excellent, and revenues are increasing. Earnings per share are expected to grow 34% this year before slowing to 17% in 2023.
