The Dow Jones Industrial Average reversed lower as stocks struggled. New Cathie Wood buy Twilio (TWLO) soared after the company announced a staff cut. Coinbase (CURRENCY) and Riot Blockchain (RIOT) were mixed as Bitcoin fell below a key level. Starbucks (SBUX) skipped.
Meanwhile, a trio of energy stocks gave bullish signals. Devon Energy (DVN), Conoco Phillips (COP) and Northern Oil and Gas (NOG) all offered buying opportunities.
Volume was mixed on the Nasdaq and the New York Stock Exchange compared to the same time on Tuesday.
The yield on the benchmark 10-year Treasury fell one basis point to 3.41%. West Texas Intermediate crude oil rose nearly 2% to trade near $89 a barrel.
Stocks in general were mixed following the new inflation data. The PPI, which measures wholesale inflation, showed producer prices fell 0.1% in August from the previous month. It corresponded to expectations. Wholesale inflation rose 8.7% from a year ago, down from July’s 9.8% rise and in line with Econoday estimates.
Nasdaq up as IBD 50 shines
The Nasdaq, which took a hit on Tuesday, fared the best of the major indexes. It was up 0.4% but off session highs. Modern (MRNA) was one of the best performers as it gained more than 5%.
The S&P 500 was also off the highs as it traded virtually flat. Nucor (NUE) plunged almost 11% on disappointing forecasts.
S&P 500 sectors were mostly negative, with energy and consumer discretionary being the best performers. Real estate is lagging the most.
Small caps saw their gains fade, with the Russell 2000 virtually flat.
The Innovator IBD 50 (FFTY) ETF performed well due to strong energy exposure. It increased by more than 2%.
Dow Jones Today: Chevron Stock, JNJ Leader
The Dow Jones Industrial Average saw its first gains fade with a 0.1% drop.
Chevron (CVX) was among the top performers as energy stocks performed well. CVX stock rose just under 2%.
It was a contest for supremacy with Johnson & Johnson (JNJ), which rose just over 2%. It was bolstered after the company announced it would buy back up to $5 billion in stock.
Honeywell International (HON) fared the worst. The aerospace game was near session lows as it fell more than 3%.
Cathie Wood: Twilio Stock jumps on Cull
Cathie Wood was active in the stock market on Tuesday, adding shares to ARK Innovation ETF (ARKK) holdings even as other investors headed for the exits.
Among the moves, she bought just over 47,000 shares of Twilio, a purchase that immediately paid off after the stock rose more than 10% today.
Shares of TWLO surged after the company disclosed in an SEC filing that it was laying off 11% of its workforce. The news was applauded by investors.
With the additional new shares, ARKK now holds a total of 4,321,544 Twilio shares.
Wood also added to his holdings of TuSimple (TSP) and DraftKings (DKNG), both posting more than 3%.
However, not all of the famous investor’s Tuesday purchases made such bullish moves.
Roku (ROKU) and UiPath (PATH) were both down almost 1%. Both stocks remain mired below their major moving averages.
The ARK Innovation ETF, which is Cathie Wood’s signature fund, remains down more than 55% so far this year.
Starbucks stock exceeds key level on tips
Starbucks stock jumped after the company raised its forecast on Tuesday night. It was up more than 5%, although down for the day.
SBUX got a boost after the departure of CEO Howard Schultz, who said the company expects double-digit revenue and EPS growth.
He expects earnings per share to grow 15-20% a year over the next three years. This was up from previous tips. It also offered better prospects for global and U.S. same-store sales growth.
Starbucks shares boiled well on the news, once again wiping out the key 200-day moving average.
Nonetheless, SBUX has a lot of work to do to recoup its 2022 losses as it remains down more than 20% for the year.
Coinbase Stock Gains as Bitcoin Reverses
Coinbase managed to hold onto its gains by rising almost 3%. The volume, however, was lower.
The stock, which cut its forecast for the full year last month, has moved further away from its 50-day moving average. COIN shares are down over 69% since the start of 2022.
Bitcoin fell below $20,000 after falling back. It is down more than 3% in the past 24 hours, according to CoinDesk.
Other cryptocurrency games have fallen. Grayscale Bitcoin Trust (GBTC) fell nearly 3% as Bitcoin mining plays Riot Blockchain (RIOT) lost almost 1%.
Excluding Dow Jones: 3 flash buy signals on energy stocks
A trio of impressive energy stocks made bullish moves on Wednesday.
Devon Energy offered a buying opportunity after breaking through an early entry as well as Monday’s high at 71.57. It’s also considering a 75.37-cup buy point with handle.
In four of the past five quarters, Devon has reported triple-digit revenue growth. Over the past three years, the company has generated average annual sales growth of 26%.
DVN saw its visibility increase on the prestigious IBD Leaderboard list today. Devon Energy is also a favorite of famous investment guru Jim Cramer.
ConocoPhillips is also actionable after clearing a 115.57 handle cup entry.
Strong overall performance is reflected in an IBD composite rating of 99. But this is a later stage four baseline, which means extra caution is required.
Northern Oil & Gas is also in a buy zone above a cup-handle entry of 33.60.
The stock is in the top 4% of stocks by price performance over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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