Banking

Dow Jones Erases Losses, Nasdaq Climbs; These Bank Earnings Beat Estimates

The Dow Jones Industrial Average closed at breakeven in today’s stock market after paring a much larger loss. Meanwhile, the Nasdaq composite closed neat its intraday highs while the S&P 500 turned positive midday.




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Dow Jones In The Stock Market Today

At the close, the Nasdaq composite was up 0.7%, leading the upside. The Dow Jones closed at breakeven. The S&P 500 rose 0.3%, while the Russell 2000 also gained around 0.3%. Early data showed volume was running higher on the NYSE and on the Nasdaq vs. the close on Tuesday.

Stocks were initially sent lower on Wednesday amid tricky inflation data. The Labor Department said consumer prices rose 0.4% in September, up from a 0.3% monthly gain in August and above Econoday’s forecast for a 0.3% increase.

On a year-over-year basis, the consumer price index rose 5.4%, slightly higher than estimates for 5.3%.

Meanwhile, third-quarter earnings season picked up Wednesday as two major bank stocks reported earnings before the market open. Dow Jones leader JPMorgan Chase (JPM), the largest U.S. bank by assets, announced results that beat views on both the top and bottom lines. A larger-than-expected release of credit reserves and strong sales in the firm’s investment banking division helped the firm outperform in the recent quarter.

Shares of the Dow Jones bank declined 2.6% in afternoon trading. Shares fell below their key 21-day exponential moving average and are testing support at the 10-week line. The stock was trading inside the 5% buy zone of a 163.93 cup-with-handle entry, but shares also broke below that area on Wednesday.

BlackRock (BLK), the world’s largest asset manager, also beat analyst estimates for earnings and its stock rose roughly 3.7%. However, the company missed on expectations for total assets under management.

Fed Meeting Minutes Are Released

Minutes from the Federal Open Market Committee’s Sept. 22 meeting were released at 2 p.m. ET on Wednesday. The minutes showed asset purchases could end by mid-2022.

The Federal Open Market Committee reviewed plans to begin reducing their bond-buying stimulus program in November, and purchases could be halted completely by the middle of next year.

The purchase of bonds has formed a key plank of the central bank’s effort to stimulate growth after the economy was rocked by the coronavirus pandemic.

Growth Stocks To Watch

The growth-focused Innovator IBD 50 ETF (FFTY) is holding above support at the 200-day line. Shares are now trying to reclaim their 21-day and 50-day moving averages. The ETF rose sharply on Wednesday, climbing around 1.6%

Stocks leading the upside in the index included InMode (INMD) and TaskUs (TASK) which gained of over 13% and 15%, respectively.

InMode soared above it’s 21-day line in heavy volume and are extending Tuesday’s 9% gain. The medical aesthetics firm offered preliminary earnings late Tuesday that exceeded Wall Street’s Q3 estimates. InMode expects an adjusted profit of 53-54 cents per share on $93.5 million to $94 million in sales. That beat analyst forecasts by a respective 49% and 25%, according to a Needham report.

A handful of stocks in the MarketSmith Growth 250 scored breakouts, including leisure gaming stock Boyd Gaming (BYD) and Procept BioRobotics (PRCT).

Boyd Gaming broke out above a cup with handle and its 67.50 buy point. Share remained just below the 5% buy area in afternoon trading. This stock is in the leisure gaming industry group, which currently ranks a strong No. 15 of the 197 groups that IBD measures. Typically investors want to focus on stocks in the top 40 groups.

Meanwhile, Procept BioRobotics rose above a 44.29 IPO-base entry. The stock took off in heavy volume as share rose more than 7.3%. The firm IPO-ed on Sept. 19 and manufactures medical and surgical equipment. Shares remain near the upper edge of the buy zone which tops out at 46.50.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and stock market commentary.

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