The stock market was mixed at midday Wednesday after Fed Chairman Jerome Powell told European bankers “there’s no guarantee” the Fed will be able to control inflation without causing a recession. General Mills (GIS) popped on earnings, while Carnival (CCL) collapsed.
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The Dow Jones Industrial Average led with a 0.2% gain. The S&P 500 slid 0.1% and the Nasdaq composite dropped 0.1%. Small caps lagged, as the Russell 2000 fell 1.3%.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31014.14 | +67.15 | +0.22 |
| S&P 500 | (0S&P5) | 3816.80 | -4.75 | -0.12 |
| Nasdaq | (0NDQC ) | 11165.43 | -16.11 | -0.14 |
| Russell 2000 | (IWM) | 170.15 | -2.29 | -1.33 |
| IBD 50 | (FFTY) | 26.85 | -0.39 | -1.43 |
| Last Update: 12:06 PM ET 6/29/2022 | ||||
Powell, speaking at a European Central Bank forum on central banking, said Covid-19 disrupted the global economy in ways that may complicate how central banks manage economic growth.
“The economy is being driven by very different forces,” he said, adding that it’s unknown if conditions can go back to “something that looks like, or a little bit like, what we had before. It has gotten harder.” He said “there’s no guarantee” the Fed will be able to bring down inflation and avoid a recession.
More Negative Economic Data Hit Stock Market
Meanwhile, the U.S. revised lower its earlier estimate for GDP in the first quarter. The economy shrank at a 1.6% annual pace. Previously, the government said the economy shrank 1.5%.
The yield on the 10-year Treasury note fell 7 basis points to 3.11%.
General Mills jumped 5% after the company reported quarterly financial results Wednesday morning that beat analysts’ expectations for both sales and earnings. It broke out of a cup base with a buy point of 74.09 and was on track to score a new all-time high.
Stride (LRN), an online learning platform for kids in grades K-12, jumped more than 8% Wednesday after a report said it will join the S&P SmallCap 600, effective July 5. Some mutual funds and other institutional investors use the S&P SmallCap index as a benchmark for their investments. Stride’s breakout past 21.30 failed but the stock is now back above the entry.
Energy stocks led the downside, with the S&P Energy Select ETF (XLE) dropping 1.7%.
Carnival, Tesla Lead The Downside
Also on the downside, Carnival plunged more than 15% after Morgan Stanley cut its price target to 7, saying the price could reach zero in a “bear case” scenario. The cruise line operator is on pace for its largest percentage decrease since June 11, 2020, when it fell 15.3%.
Tesla (TSLA) slid nearly 4% after the company announced it will likely revise its global production and delivery data for the second quarter later this week. The Covid lockdowns and restrictions significantly reduced Shanghai plant production for much of the quarter. CEO Elon Musk has also cited supply-chain woes for limiting output elsewhere.
The Innovator IBD 50 ETF (FFTY) fell 0.8%. IBD 50 component Humana (HUM) gained 1.2% to near a new high. It is below a 469.44 alternate buy point.
Progress Software (PRGS) extended losses and is now more than 8% below an alternate entry at 51.04, which results in a sell signal. The database software stock fell despite beating quarterly expectations late Tuesday.
OPEC is meeting this week amid tight supplies and the potential for decreased demand if the global economy slows. The price of U.S. crude oil was flat at $111.70 after jumping past $113 earlier Wednesday.
AeroVironment (AVAV), which makes the Switchblade missiles shipped to Ukraine, slid more than 8%. The company missed April-quarter expectations, citing supply chain problems and a tight labor market. The stock sank to its March lows.
Bed Bath & Beyond (BBBY) plunged more than 20% after the company posted a loss for the May-ended quarter and said sales plummeted 25%. BBBY also dismissed Chief Executive Mark Tritton and said Board member Sue Gove was named interim CEO.
Follow Michael Molinski on Twitter @IMmolinski
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