Stock Market Shrugs Off Fed Powell’s Speech; Warren Buffett Stock Rises

The stock market started the day with a crawl Wednesday, with all major indexes flat to modestly higher in the first hour of trading.

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The Dow Jones Industrial Average edged  0.1% higher and the Nasdaq composite climbed 0.2% on the stock market today. The S&P 500 was nearly flat. All three major indexes remained solidly above their 50-day moving averages. But the small-cap Russell 2000 shed 0.8% and remained below its 50-day line.

Volume fell on the New York Stock Exchange and rose on the Nasdaq from Tuesday’s levels at the same time of day.

The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, edged0.1% lower. The Innovator IBD 50 ETF (FFTY) fell 0.2%.

The 10-year Treasury yield shed 1 basis point to 4.56%.

Fed Chair Jerome Powell spoke at the Division of Research and Statistics Centennial Conference, Washington, D.C. Wednesday morning. Powell spoke at 9:15 ET but didn’t comment on monetary policy or the economic outlook.

The division is responsible for providing support to the Federal Open Market Committee on a broad range of economic and financial matters.

Stock Market Action: Warren Buffett Stock Jumps

Warren Buffett holding Occidental Petroleum (OXY) added around 2% after the oil and gas company reported better-than-expected third-quarter earnings and revenue late Tuesday. Quarterly profit fell 52% on a 22% sales drop. The energy stock unsuccessfully tested its 200-day moving average and is back below the line.

Upwork (UPWK) gapped up in heavy volume following the company’s better-than-expected third-quarter earnings and sales. The freelance-work platform operator also raised its fourth quarter and full-year 2023 EPS and revenue forecast. The stock jumped above its 50-day line on Wednesday. Shares are not currently in a base.

Roblox (RBLX) soared in heavy volume following the company’s third-quarter smaller-than-expected loss and higher than expected sales. Its average daily active users rose 20% versus last year, to 70.2 million. Shares of the online gaming developer reclaimed the 200-day line on the leap.

Rivian (RIVN) gave back earlier gains, after the electric vehicle maker announced a third-quarter smaller-than-expected loss and higher revenue. Meanwhile, rival Tesla (TSLA) pulled back nearly 2%.

TakeTwo Interactive (TTWO) gapped up in huge volume on a Bloomberg report that it may announce its new Grand Theft Auto video game this week. The company reports earnings for its September quarter Wednesday after the market close.

Shares retook the 50-day line on today’s move and are in an undefined base with a 153.84 buy point.

AeroVironment (AVAV) shares broke out of a cup-with-handle base after hitting the 123.34 buy point, but have since retreated below the entry point.

Shares of Datadog (DDOG) pulled back after yesterday’s 28.5% gap up in heavy volume. The cloud software company Tuesday reported third-quarter earnings and sales that beat estimates and raised its full-year 2023 net income and revenue guidance. The stock reclaimed its 50-day line on Tuesday’s move.

Big Stock Losers: Lending Stock Plunges

Upstart (UPST) plunged more than 26% in heavy volume after the cloud-based lending company reported a larger-than-expected third-quarter loss and missed sales estimates. Upstart forecast an adjusted Q4 loss of $14 million and revenue lower than analysts’ forecasts.

Shares fell deeply below the 50-day line and flashed a sell signal. It was already in a long correction.

Array Technologies (ARRY) plunged 19% after the solar energy systems company beat on its Q3 profit estimates but missed on sales. Array also lowered its full-year 2023 adjusted earnings and revenue estimates.

Toast (TOST) plummeted after the restaurant-management technology company reported a smaller September quarterly loss than expected and slightly higher revenue, and lowered its full-year revenue guidance range.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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