The Dow Jones Industrial Average gained slightly as stocks struggled. Shop the new Kathy Wood Twilio (TWLO) rose after the company announced layoffs. Coinbase (currency) and Riot Blockchain (Rebellion) mixed as Bitcoin fell below a key level. Starbucks (Sex) emerged.
Volume on the Nasdaq and New York Stock Exchange was lower, according to preliminary data.
The yield on the benchmark 10-year Treasury note fell a basis point to 3.41%. West Texas Intermediate crude rose nearly 2% to trade at $89 a barrel.
Stocks in general struggled to make decisive gains following fresh inflation data. The PPI, which measures headline inflation, said producer prices fell 0.1% in August from the previous month. It was in line with expectations. Total sales inflation rose 8.7% from a year earlier, matching July’s 9.8% surge and matching Econoday estimates.
NASDAQ UP IBD 50 SHINES
The Nasdaq, which fell on Tuesday, outperformed the major indexes. It edged higher as it gained 0.7%, but closed at session highs. Modern (mRNA) was a better performer as it got 6.2%.
Another rally was staged as the S&P 500 ended the day up 0.3%. Nukor (NUE) fell 11.3% on disappointing guidance.
S&P 500 Departments are mixed Great performers with energy and consumer preference. Real estate is far behind.
Small caps whipsawed, but the Russell 2000 managed a 0.3% gain at the end.
Innovator IBD 50 ETF (FFTY) was good due to solid energy exposure. It closed the day up 2.2%.
Dow Jones Today: Chevron shares, JNJ leads
The Dow Jones Industrial Average gave up some gains but rose 0.1% to close lower.
Chevron (CVX) was the best performer as energy stocks outperformed. CVX stock ended the session up 2.4%.
It stood still Johnson & Johnson (J.N.J), which turned out to be a 2.1% gain. That was boosted after the company announced a share buyback of up to $5 billion.
Honeywell International (Hon) was very bad. The space game was near session lows as it fell 2.7%.
Cathy Wood: Twilio stock jumps on cool
Cathy Wood was active in the stock market on Tuesday, adding stakes in shares of ARK Innovation ETF (ARKK) even if other investors go to the exit.
Among the moves, he picked up 47,000 shares of Twilio, a purchase that paid off immediately after the stock rose 10% today.
TWLO stock rocketed after the company filed with the SEC to lay off 11% of its workforce. The news has caused euphoria among investors.
With the new additional shares, ARKK now owns a total of 4,321,544 shares of Twilio stock.
Not all of the celebrity investor’s Tuesday purchases were such bullish moves.
Cathy Wood’s signature fund, the ARK Innovation ETF, is down more than 55% so far this year.
Starbucks stock boiled above guidance’s key level
Starbucks stock rose late Tuesday after the company raised its guidance. It ended the session close to the day’s high, up 5.5%.
SBUX was boosted after outgoing CEO Howard Schultz said the company expects double-digit growth for revenue and EPS.
It expects earnings per share to grow 15% to 20% annually over the next three years. This is an increase from previous guidance. It also provided an improved outlook for global and US same-store sales growth.
Starbucks stock bounced back on the news, clearing the 200-day moving average once again.
Still, SBUX has a lot of work to do to offset its 2022 losses, as it’s down more than 20% year-to-date.
Bitcoin Reverse Coinbase Stock Gain
Coinbase managed to finish the session strong. It held on to most of its gains as it rose 4.6%. However, the volume was low.
The stock, which cut its full-year forecast last month, has moved further away from its moving 50-day moving average. COIN shares are down more than 69% since the start of 2022.
Bitcoin fell below the key $20,000 mark after reversing lower. It has fallen almost 2% in the last 24 hours. According to CoinDesk.
Dow Jones Out: Three Energy Stocks Flash Buy Signals
All three of the impressive energy stocks made bullish moves on Wednesday.
Devon Energy made an early entry and offered a buy after settling at Monday’s high of 71.57. It also sees a buy point at the 75.37 cup-with-handle.
In four of the past five quarters, Devon has generated triple-digit revenue growth. Over the past three years, the company has generated annual average sales growth of 26%.
DVN today finds exposure on the prestigious IBD Leaderboard list. Devon Energy is a favorite of celebrity investment guru Jim Cramer.
The ConocoPhillips 115.57 cup-with-handle is still functional after erasing the insert.
The strong all-round performance is reflected in an IBD composite rating of 99. But this is a later, fourth-level basis, which means additional caution is required.
Northern Oil & Gas is in a buy zone above the 33.60 cup-with-handle entry.
The stock is in the top 4% of stocks based on price action over the last 12 months.
Follow Michael Larkin on Twitter @IBD_MLarkin To further analyze growth stocks.
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