Major indexes held near session lows at midday Wednesday as the stock market faced two new uncertainties: incomplete results from the midterm elections and a critical inflation report in less than 24 hours.
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The Nasdaq composite was down 1.1%, while the S&P 500 and Dow Jones Industrial Average were down 0.8%.
Volume rose on the NYSE and fell on the Nasdaq compared with the same time on Tuesday.
The Innovator IBD 50 ETF (FFTY) also deepened losses, trading down 2% at midday. Intermex (IMXI) slid below its 50-day moving average after the money transfer site’s earnings beat views but sales lagged estimates, according to FactSet. The stock has triggered the 7% sell rule.
Results from Tuesday’s midterm elections remained unsettled.
Republicans are still expected to win a majority in the House of Representatives but GOP gains so far are less than many had forecast. At the same time, control of the Senate is too close to call.
Thursday morning’s consumer price index (CPI) report has the potential for a larger stock market move than the election. Econoday’s consensus is forecasting a painful 8% jump in October prices on an annual basis, with core prices climbing 6.6%.
The yield on the 10-year Treasury note fell 2 basis points to 4.11% at midday.
Meta News, Earnings Among Stock Market Moves
Meta Platforms (META) climbed more than 8% after confirming it will cut 11,000 jobs. The layoffs amount to 13% of Meta’s payroll and will impact all segments. The parent of Facebook and Instagram also plans to cut office space. Shares are on pace for their best day since April 28, when they rose 17.6%, according to Dow Jones Market Data. But Meta is still having its worst year ever.
Halozyme Therapeutics (HALO) broke out of a cup-with-handle base in heavy volume. The biotech beat third-quarter sales and profit expectations.
Performance Food Group (PFGC) broke out of a cup with handle as the distributor for the food service industry climbed above a 53.58 buy point. Before the opening bell, the company reported 151% earnings growth and a 42% sales surge, according to MarketSmith.
The stock market had more earnings reports to weigh.
Trade Desk (TTD) beat third-quarter earnings and revenue estimates this morning, thanks to growth in internet TV. But the advertising-buying platform gave revenue guidance below expectations. Shares reversed lower.
Array Technologies (ARRY) rose more than 13% after beating Q3 estimates late Tuesday. The stock is forming a new base.
Occidental Petroleum (OXY) posted mixed financial results late Tuesday, missing earnings views while topping revenue estimates. The stock gapped down near the 72.14 buy point of a breakout on Oct. 26.
Walt Disney (DIS) fell more than 12% in heavy volume after the entertainment company missed views and posted lower earnings Tuesday afternoon. The stock’s tumble of more than 40% year to date makes it the worst year for Disney since 1974, when it fell nearly 54%, according to Dow Jones Market Data.
Homebuilder D.R. Horton (DHI) rose more than 6%, despite missing September-quarter earnings and posting an order decline. DHI stock is forming a cup-with-handle base with a 79.05 buy point.
Bitcoin, Crypto Plunge On Liquidity Worries
Crypto assets continued to slide after a liquidity crunch forced FTX to sell its assets outside the U.S. to rival Binance. FTX users on Monday withdrew more than $1 billion on fears the cryptocurrency exchange may become insolvent. Earlier today, CoinDesk reported that Binance is likely to walk away from the rescue plan.
The crisis raised concerns about broader liquidity problems in the crypto world.
Bitcoin fell more than 16% in the past 24 hours to below $17,000, according to CoinDesk. The digital coin is at the lowest price since November 2020. Ethereum is doing even worse, down nearly 17% to $1,213.
The fallout spread into the stock market, with ProShares Bitcoin Strategy ETF (BITO) dumping 6.8% while Coinbase Global (COIN) fell 7.9%.
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Read More:Slow Vote Weighs On Stock Market; Crypto Rout Continues
2022-11-09 17:04:00
