Stocks were mixed in early trades Wednesday after an inflation report showed price gains were in line with estimates. Meanwhile, a company backed by artificial intelligence giant Nvidia (NVDA) took a dive, while troubles mounted for struggling Super Micro Computer (SMCI) on the stock market today.
Investors gave a slight lift to the Dow Jones Industrial Average, which edged up 0.2% in recent action while the S&P 500 started to venture into positive ground. The Nasdaq lagged, however, falling 0.2%, though it was paring its losses.
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Volume was higher on the Nasdaq and lower on the New York Stock Exchange.
Small caps managed to recover from Tuesday’s steep fall when yields spiked. The Russell 2000 gained 0.7% as the yield on the 10-year Treasury note fell one basis point to 4.43%. On Tuesday, it rose to 4.44%.
Inflation as measured by the Labor Department’s Consumer Price Index matched economists’ views for October. Month to month, prices rose 0.2%, and climbed 2.6% on an annual basis. Core inflation also met views, increasing 0.3% on the month and 3.3% annually.
Stock Market Today: Nvidia-Backed Firm Plunges
AI play SoundHound (SOUN) plunged more than 16% even though the company posted an earnings beat. Nvidia is an investor in the company.
The maker of AI voice technology lost 6 cents a share for its fiscal third quarter, ahead of the 7-cent loss analysts expected. SoundHound also said sales were $25.1 million, ahead of views for $23 million.
Elsewhere, Super Micro Computer continued its downward spiral on the stock market today. The AI server maker said in a filing with the Securities and Exchange Commission that it would not be able to file its quarterly 10-Q form on time “without unreasonable effort or expense” after its accounting firm resigned in October.
The company also faces a Nov. 16 deadline to submit a plan for becoming compliant with the listing rules on the Nasdaq exchange. Shares fell more than 3% in recent trades.
Occidental Falls, Musk Rival Soars
Warren Buffett-backed energy stock Occidental Petroleum (OXY) fell even after beating analyst estimates. Occidental Petroleum reported sales of $7.17 billion and earnings of $1 per share. Analysts had expected 74 cents earnings per share on $7.12 billion in revenue.
But a rival of Elon Musk’s SpaceX, Rocket Lab (RKLB), soared more than 40%. It reported lower losses per share and higher revenue than analysts expected.
Spotify (SPOT) jumped after the company reported an increase in premium subscribers that beat Wall Street’s target. Spotify’s subscribers rose to 6 million in its September-ended quarter, vs. estimates of 5.19 million. Revenue for the music streaming service topped views at $4.38 billion vs. estimates of $4.29 billion. But earnings of $1.59 per share missed by 21 cents.
Shares cleared the 20% profit zone from a buy point of 359.38 on the stock market today.
Meanwhile, Instacart (CART) fell. The company’s fourth-quarter profit outlook came in lower than analysts expected.
Stock Market Today: Cava Soars On Earnings
Restaurant stock Cava (CAVA) soared 13% after earnings. Cava raised its full year outlook after an earnings beat. The stock is on IBD SwingTrader.
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Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Among the Magnificent Seven, Nvidia remained in a buy zone from a 140.76 buy point while Meta (META) fell, testing the 21-day moving average. Shares are in a base with a buy point of 602.95.
Google-parent Alphabet (GOOGL) fell but remained near a buy point of 182.02.
Microsoft (MSFT) tested the 50-day moving average while Apple (AAPL) fell below that line of support.
Tesla (TSLA) gained but shares are above a profit zone while Amazon (AMZN) rose in a buy zone that goes up to 211.26.
Meta, Nvidia and Alphabet are on IBD SwingTrader. Nvidia is also on IBD Leaderboard and the IBD 50.
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Dow Jones Stocks
Among stocks on the Dow Jones index, tech players were a mixed bag. Nvidia gained while Salesforce (CRM) and Cisco (CSCO) lagged. Cisco’s first-quarter results are due after the market close.
Meanwhile, Home Depot (HD) gained the most while Caterpillar (CAT) was the worst performer on the Dow.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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