Dow Jones Rises As Fed, Key Treasury Event Loom; Cathie Wood Scoops Up Fintech

Indexes traded near the day’s highs in afternoon trading Tuesday ahead of two key events. The Dow Jones Industrial Average rose 0.4% while the S&P 500 added a 0.7% gain on the stock market today. And the Nasdaq rose another 0.5% after Monday’s 1.2% gain, clearing the 200-day line.

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Investors are looking ahead to Wednesday, when the Treasury’s quarterly refunding announcement is due. Treasury officials are expected to give details of the $776 billion debt offering for the fourth quarter and $816 billion in the first quarter of 2024. The second event, the Federal Reserve meeting, should be uneventful as the Fed is expected to leave rates unchanged for now.

Also due on Wednesday, the Job Openings and Labor Turnover Survey is expected to show job openings at 9.375 million in September, down from 9.610 million in August. And ADP payroll data for October is expected to show 150,000 changes in private employment after September’s 89,000, according to Econoday.

Further, investors await the Purchasing Managers’ Manufacturing Index and the Institute of Supply Management’s Manufacturing Index data, also on Wednesday.

Meanwhile, data released Tuesday showed consumer confidence topped views of 100 at 102.6 for October, lower than September’s 103, according to the Conference Board.

NYSE Volume Up, Nasdaq Down

Volume was higher on the New York Stock Exchange and lower on the Nasdaq exchange compared with the same time on Monday. Small caps lifted the Russell 2000 by 0.8%

Crude oil slid further, falling to $81.16 a barrel. Also, the yield on the benchmark 10-year Treasury note fell 1 basis point to 4.86%.

And the Innovator IBD 50 (FFTY) exchange traded fund gained 0.4%.

Bitcoin formed a bullish golden cross after the recent crypto rally, as investors await a Bitcoin spot ETF. The 50-day moving average for the crypto asset crossed over the 200-day line as reported by Cointelegraph.

Meanwhile, Cathie Wood’s Ark Fintech Innovation ETF (ARKF) bought 473,225 shares of fintech company Sofi Technologies (SOFI). Sofi has a crypto platform that supports several digital coins including Bitcoin, Ethereum, Litecoin and others.

Dow Jones Stocks: Apple, Caterpillar

Apple (AAPL) rose 0.2% ahead of earnings on Thursday. Late Monday, the Cupertino, Calif.-based tech titan unveiled a new MacBook with the M3 chip. The higher end M3 Max is reported to support developers of artificial intelligence.

Caterpillar (CAT) gapped down 6% after slowing sales outlook offset a strong third-quarter report.

Outside Dow Jones stocks, shares of Pinterest (PINS) gapped up and retook the 50-day line after third-quarter sales growth came in at 11% and accelerated for the fourth quarter in a row. Margins more than doubled to 24% from 11% a year ago. The stock is in buy range from an entry at 28.90.

But chip leader Lattice Semiconductor (LSCC) reported its fifth quarter of decelerating sales and earnings. Shares dived to November lows.

Rambus (RMBS) gained over 10% even as both sales and revenue decelerated for two quarters in a row.

Wolfspeed (WOLF) also rose among earnings movers after fiscal first-quarter results. For its second quarter, the silicon carbide technologies maker expects midpoint sales of $207 million and loss of 69 cents per share. Shares gapped up 20%.

Outside Dow Jones: AMD Up Ahead Of Earnings

Also outside the Dow Jones index, chip giant Advanced Micro Devices (AMD) rose ahead of earnings at market close. Shares are below their key moving averages.

Recent addition to IBD Swingtrader, Cameco (CCJ) is rebounding off its 50-day line in strong volume. Third-quarter sales for the uranium miner rose 48% but earnings skyrocketed 967%.

In the IBD 50, ELF (ELF) fell sharply below its 200-day line ahead of earnings on Wednesday, but Deckers (DECK) showed impressive action and added to its hefty gains on its earnings breakout.

Vertiv (VRT) is clearing the 50-day line and is nearing a buy point of 40.41.

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

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