Stocks rebound ahead of Powell speech; Nvidia gains despite Taiwan quake while Tesla slides

Stocks rebound ahead of Powell speech; Nvidia gains despite Taiwan quake while Tesla slides

Major indexes  rose from a key support level as investors awaited Fed Chair Jerome Powell’s speech later today. Nvidia (NVDA) pared early losses in the stock market today after an earthquake in Taiwan affected its foundry partner, Taiwan Semiconductor (TSM), while Tesla (TSLA) fell further on analyst views.




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The Dow Jones Industrial Average erased early losses and rose 0.2% in morning trades. The index is back above the 21 day exponential moving average after dipping below the line Tuesday.

The S&P 500 reversed higher 0.3% while the Nasdaq composite climbed 0.4% and added some more space above the 21 day line. Among the S&P sectors, industrials and materials gained while consumer staples and utilities fell along with consumer discretionary and technology.

The ADP employment report showed that the economy added 184,000 jobs in March, above views for 150,000, according to Econoday. Meanwhile, MarketWatch reported that Atlanta Fed President Raphael Bostic said that the Fed should wait until the fourth quarter before cutting rates. Powell will speak at the Stanford Business, Government and Society Forum in California a little past noon ET.

Volume on the NYSE was lower and on the Nasdaq higher compared with the same time on Tuesday. Decliners outnumbered advancers on both exchanges.

The small-cap Russell 2000 rebounded 0.3% after two days of heavy selling. The Innovator IBD 50 ETF (FFTY) rebounded from the 50-day moving average with a 0.5% gain.

The yield on the benchmark 10-year Treasury note rose 1 basis point to 4.38%

Dow Jones Stocks

Intel (INTC) fell nearly 7% in the stock market today after the chip bellwether said that its foundry operations lost $7 billion in 2023. The company expects to break even on its operating margins “midway between now and 2030.

Among other tech stocks in the Dow, Microsoft (MSFT) is getting support at its 21-day moving average, according to IBD MarketSurge chart analysis tools. MSFT is on the IBD Long Term Leaders list.

Salesforce (CRM) is rebounding from the 50-day moving average and appears to be building a base with a buy point of 318.71. Caterpillar (CAT) and Merck (MRK) were among the biggest gainers in the index.

Apple (AAPL) rose 0.9% but its 50-day moving average has fallen below the 200-day line.

Stocks Market Today: Tesla Down Again

Tesla continued to fall after selling off on Tuesday’s weak first-quarter deliveries. Deutsche Bank  analyst Emmanuel Rosner observed that slowing demand could be compounding its high inventory problem.

Meanwhile, Nvidia is bouncing off the 21-day line as it rose 0.6%. Nvidia’s key contract manufacturer is Taiwan Semiconductor (TSM), which had to halt some work following a powerful earthquake in Taiwan early today. Nvidia, a Magnificent Seven stock, is a holding on IBD Leaderboard and the IBD 50.

Among earnings movers, game arcade and restaurant operator Dave & Buster’s (PLAY) has gapped up and broken out from a three-weeks-tight base’s buy point of 64.90. Fourth-quarter sales grew 6% while earnings were 21% higher than the prior year.

Cal-Maine (CALM) gapped up after getting support around the 10-week moving average. It is back above a cup with handle buy point of 57.95.

Elsewhere, Warren Buffett holding Ally Financial (ALLY) got a downgrade from JPMorgan to underweight. In the IBD 50, ELF Beauty (ELF) triggered a sell signal by falling below the 50-day moving average in heavy volume in the stock market today.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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