Earnings reports took the commanding heights of the stock market Wednesday as the stock market tried to rebound from the prior day’s route.
Indexes came off earlier gains and traded lower for a while as trading remained volatile.
The Nasdaq composite was up 0.7% after microsoft (MSFT) and Alphabet (GOOGLE), two of its largest components, went in opposite directions. The technology sector, routed earlier this week, led the stock market. Technology Select Sector SPDR (XLK) jumped 1.5%.
The S&P 500 climbed 0.6% after falling 0.2% after 10 am ET and regained the 4200 level, which should be watched for a possible low.
Dow Climbs Amid Mixed Results
The Dow Jones Industrial Average bounced 0.4% as Visa (v) and boeing (BA) made big moves on earnings.
Visa gapped up to a nearly 9% gain after the credit card company beat March-quarter earnings estimates. Visa climbed back above its 50-day moving average but getting across the 200-day line has been a problem.
US Stock Market Today Overview
Last Update: 10:08 AM ET 4/27/2022
Boeing fell 5% to the lowest point since November 2020 following a disappointing first-quarter report. The company posted a loss and weaker-than-expected revenueciting higher costs and delays in jet programs.
The small-cap Russell 2000 index fell 0.4% and continued to fall after other market indexes rebounded from early lows.
Volume fell on the Nasdaq and rose on the NYSE compared with the same time on Tuesday.
Microsoft, Alphabet Earnings
Microsoft helped the stock market bounce back with a nearly 6% jump in the stock. Late Tuesday, the company beat expectations for its March-ended quarter on strong cloud computing business. Its sales guidance for the current quarter met views.
Alphabet missed first-quarter earnings and revenue expectations late Tuesday. The company’s YouTube advertising growth lagged estimates. Earnings fell 6% to $24.62 per share. Gross revenue rose 23% to $68.01 billion. The stock fell 2% after paring losses.
General Motors (GM) rose 0.8% though it remains near late 2020 levels. The automaker’s earnings fell less than expected in the first quarter. GM reaffirmed its 2022 earnings outlook, citing strong demand and improving vehicle production as chip shortages start to ease.
Meta Platforms (fb), another major company, reports results after the close today, and investors have low expectations after the stock plummeted after its Feb. 2 report. Analysts expect the Facebook parent to earn $7.1 billion, or $2.56 a share, which would mark the second straight quarterly drop in profit. Shares fell 2.5%.
Biotech, Mattel Among Big Movers
Alkermes (ALKS) gapped up after the biotech’s adjusted earnings and sales topped expectations. Alkermes stock topped the 30.12 buy point of a cup-with-handle base in heavy volume. But market risk is such that any stock buys are not likely to work out.
Mattel (mat) jumped nearly 12% in heavy trading after The Wall Street Journal reported that the toy maker is in talks with private equity firms about a possible sale of the company. Mattel shares regained the 50-day moving average and are forming a base cup with a 25.81 buy point.
The Innovator IBD 50 ETF (FFTY) rose 1%, beating the stock market. Arch Resources (ARCH) led the IBD 50 with an 8% increase and is close to a new closing high. The coal producer bounced off the 10-week moving average Tuesday after the company’s earnings report.
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