The stock market was narrowly mixed Wednesday morning as retail earnings suggested consumers are pulling back on spending. Bed Bath & Beyond (BBBY) continued its wild ride, jumping more than 20% at the opening bell.
The Nasdaq composite rose 0.2% and the S&P 500 was flat at 10 a.m. ET. The Dow Jones Industrial Average fell 0.1%, while the small-cap Russell 2000 climbed 0.3%.
Volume rose on the Nasdaq and fell on the NYSE, compared with the same time on Tuesday.
The price of U.S. crude oil was little changed after rebounding in the past few days on expectations of a production cut. It traded at $93.68 per barrel midmorning. The yield on the 10-year Treasury note added 5 basis points to 3.10%.
Livent (LTHM) climbed above the 31.63 buy point of a cup-with-handle base in heavy volume. The lithium producer has been rallying since bouncing back from a post-earnings slide in early August.
The Innovator IBD 50 ETF (FFTY) outperformed with a 1.1% gain. IBD 50 stocks Shockwave Medical (SWAV) and Celsius Holdings (CELH) climbed to new highs.
Bed Bath & Beyond Soars On Financing Deal
Bed Bath & Beyond soared this morning after a four-day, 62% plunge.
The Wall Street Journal reported the struggling retailer has secured a loan to provide liquidity, giving vendors confidence to continue shipping merchandise. JPMorgan Chase (JPM) conducted a campaign to obtain the financing, according to Journal sources.
U.S. Stock Market Today Overview
|Last Update: 10:04 AM ET 8/24/2022|
The SPDR S&P Retail ETF (XRT) fell nearly 1% as sector developments were mostly bearish.
Petco (WOOF) slid 6% in busy trading and is now below the 50-day moving average. The pet-care chain missed estimates, partly due to costs from the acquisition of its veterinary joint venture.
Advance Auto Parts (AAP) sold off more than 8% after missing top and bottom-line expectations. The parts retailer also lowered fiscal year earnings and revenue forecasts. Advance Auto is on pace for its largest loss since March 20, 2020, according to Dow Jones Market Data.
Nordstrom (JWN) gapped down to a loss of 15% in heavy volume after beating quarterly estimates but lowering its full-year outlook.
The upscale department-store chain now expects full-year sales to rise between 5% and 7%, lower than the earlier 6% to 8% forecast. In addition, projected EPS of $2.30 to $2.60 per share was a major cut, compared to the previous $3.20 to $3.50.
Shares are now testing support around the 19 level.
Earnings were better in the tech sector.
Telecom services provider Dycom (DY) climbed to a new high, up nearly 6% on better-than-expected earnings.
Financial software company Intuit (INTU) gapped up 6% in heavy volume on July-quarter results that beat expectations and guidance above analyst views.
Stock Market Watches Nvidia Earnings
After today’s close, a key tech-sector report is due when Nvidia (NVDA) announces July-quarter results.
Analysts expect EPS of 50 cents per share vs $1.04 a year ago, on revenue of $6.67 billion. The stock has rebounded from 52-week lows, but is on track for a third-straight down week.
Homebuilder Toll Brothers (TOL) trimmed its full-year delivery forecast, citing labor shortages and supply-chain disruptions. Rising mortgage rates also cut into demand, the luxury-home builder said. Yet, the stock reversed higher and was up nearly 1%, although still rangebound.
In economic news, durable goods orders were flat in July from the previous month and up 0.3%, excluding transportation. The Econoday estimate was for a 0.5% monthly increase and 0.1% gain, ex-transportation.
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The post Stock Market Little Changed As Retail Earnings Disappoint; Lithium Producer Tops Buy Point appeared first on Investor’s Business Daily.