The Dow Jones Industrial Average showed an upward trend on Wednesday following a speech by Federal Reserve Chair Jerome Powell. In contrast, Tesla’s stock experienced a significant decline, despite a positive uptick in vehicle insurance registrations in China for the electric vehicle (EV) manufacturer.
Powell delivered opening remarks at a conference commemorating the 100th anniversary of the establishment of the Fed’s Division of Research and Statistics, founded in 1923. This division plays a crucial role in providing support to the Federal Open Market Committee on a wide range of economic and financial matters. Powell’s speech took place at 9:15 a.m. Eastern Time and notably did not touch upon monetary policy or the economic outlook.
In the early hours of Wednesday, several prominent companies released earnings reports, impacting their respective stocks. Key earnings movers included Array Technologies (ARRY), Dutch Bros (BROS), eBay (EBAY), Gilead Sciences (GILD), Lucid Group (LCID), Mosaic (MOS), Occidental Petroleum (OXY), Rivian Automotive (RIVN), and Toast (TOST).
Among these, ARRY stock saw a substantial decline of over 17%, while BROS shares gained momentum, rising by 7% in morning trading. EBAY stock witnessed a decline of over 7%, and Gilead shares dropped by 5%. LCID stock experienced a decline of 7.4%, while Mosaic stock moved down moderately. OXY stock, on the other hand, increased by 2.4%, while Rivian shares surged more than 5%. Finally, TOST stock faced a significant drop, falling by over 17%.
Shortly after the opening bell on Wednesday, the Dow Jones Industrial Average exhibited a 0.1% increase, while the S&P 500 made slight gains. In contrast, the tech-heavy Nasdaq composite reversed its trend, declining by 0.1% in morning trading.
Among exchange-traded funds (ETFs), the Nasdaq 100 tracker, Invesco QQQ Trust (QQQ), registered a 0.1% decrease, while the SPDR S&P 500 ETF (SPY) saw a 0.1% uptick early in the day.
The yield on the 10-year U.S. Treasury bond experienced a minor decline, settling at 4.56%. This came after Tuesday’s closing at 4.57%, which marked its lowest level since late September.
Oil prices continued to slide, with West Texas Intermediate (WTI) futures falling by another 1.5%, trading below $77 per barrel. This marked the lowest level for WTI since late July.
Stock Market Rally
On the previous trading day, the Dow Jones Industrial Average posted a 0.2% gain, while the S&P 500 saw a 0.3% increase.
In a recent commentary on the broader market, “The Big Picture” column noted, “The stock market continues to perform well after follow-through days for the Nasdaq composite and S&P 500 last week. More stocks are flashing buy signals, either by breaking out of new bases or finding support at key moving averages.”
In light of these developments, it is essential to stay informed by regularly reading IBD’s “The Big Picture” column, especially after the robust gains witnessed in the previous week. It is advised to explore strategies for investing in the early stages of a new stock market uptrend.
