Personal Finance

Stock Market Does Sharp About-Face; Dow Breaks Win Streak

Stock market indexes unexpectedly reversed course in afternoon trading Wednesday, sending the major indexes lower by more than 1%. The Dow Jones Industrial Average couldn’t add to its nine-day win streak after reaching all-time highs.




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The Dow pulled back 1.3%. All 30 Dow components fell Wednesday, the first time that’s happened since March 22, according to Dow Jones Market Data.

Meanwhile, the Nasdaq composite reversed lower 1.5% and snapped a nine-day win streak. The S&P 500 also skidded 1.5% in the stock market today after hitting a new 52-week high earlier today. The small-cap Russell 2000 slid 1.9%. The 10-year Treasury yield shed 4 basis points to 3.88%.

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, gave back gains and faded 1.5%. The Innovator IBD 50 ETF (FFTY) tumbled 2.5%.

Volume rose on the New York Stock Exchange and the Nasdaq, according to preliminary numbers.

Earlier today, the Conference Board’s December consumer confidence reading of 110.7 outpaced the 103.4 consensus and the revised November 101.0 reading.

Stock Market Movers: Nvidia And Tesla Join The Sell-Off

IBD 50 stock Nvidia (NVDA) fell 3% but remained in the 5% buy zone of a buy point of 476.09. Tesla (TSLA) sank 3.9% to close out the day.

Aon (AON) gapped down 6% in heavy volume on news it would acquire property and casualty broker NFP for around $13.4 billion in cash. The deal is expected to close in mid-2024. Shares sold off with other insurance stocks on Dec. 14, on expectations of lower interest rates in 2024. Wednesday’s steep drop triggered a sell signal for Aon.

FedEx (FDX) gapped down 12.1% in heavy volume after the company reported lower-than-expected fiscal second-quarter earnings and sales late Tuesday. The shipping company now expects a single-digit percentage revenue drop in fiscal 2024 versus the flat forecast previously given. Shares fell more than 7% from a 270.95 buy point and fell below the 50-day line, flashing sell signals.

FDX had its largest decrease since Sept. 16, 2022, when it fell 21.4%, according to Dow Jones Market Data. It was the biggest loser on the S&P 500 Wednesday.

Toro (TTC) gapped 8.9% up in heavy trading following the company’s better-than-expected fiscal fourth-quarter earnings and sales. The landscape equipment maker reclaimed its 200-day moving average. TTC equaled its largest one-day increase set on March 24, 2020, when it also rose 8.9%, according to Dow Jones Market Data.

Winnebago Industries (WGO) sank 5.6% after the RV maker missed its fiscal first-quarter adjusted earnings but exceeded sales expectations. Quarterly earnings have declined for five straight quarters.

Argenx (ARGX) sold off 25.1% in huge volume after the company reported disappointing results on a phase 3 study on a treatment for an autoimmune disease that causes skin blisters. ARGX was already below its 50-day line when it tumbled below its 200-day line Wednesday.

Other Stock Action: Google Hits A Buy Point

Alphabet (GOOGL) broke out of a cup-with-handle base. But shares closed below the 139.42 buy point.

Steelcase (SCS) soared 10.9% in heavy volume after the office furniture company reported higher-than-expected fiscal third-quarter adjusted earnings but missed sales estimates. Steelcase gave current-quarter earnings estimates that were in line with views, but revenue guidance disappointed. Shares hit a 52-week high Wednesday in stock market action.

Dow Jones component Caterpillar (CAT) tried to break out of an irregular base and hit the 293.88 buy point before pulling back below the entry.

IBD 50 and Dow stock Salesforce (CRM) fell 1.6% after Wells Fargo downgraded the stock to equal weight from overweight with a price target of 280.

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

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