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Dow Snaps 5-Day Skid in Wild Session

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This solid earnings season finally won out in Wednesday's session… barely . The market has been focusing more on rising rates of late than on all the strong reports hitting the street. It felt like more of the same this morning, but a late-day surge helped two of the three major indices close on the plus side.

The Dow was stuck in a five-session losing streak as the opening bell rang this morning and then the index slipped another 200 points. However, the rebound kicked in late and ended the skid with a rise of 0.25% to 24,083.8. The S&P followed a similarly rocky road to gain 0.18% to 2639.4. But the NASDAQ couldn't keep pace and finished lower by 0.05% to 7003.7.

The tech-laden index now has its own five-session losing streak as it continues to feel the heat from a pair of warnings last week on soft iPhone/smartphone sales. The NASDAQ may get a shot in the arm tomorrow, though, since Facebook beat on both the top and bottom lines after the bell today. The social media giant had been under intense pressure for mishandling user information during the presidential campaign, which saw founder and CEO Mark Zuckerberg testifying before Congress for several days earlier this month. Nevertheless, as of this writing, shares of FB are up about 7% afterhours.

The editors weren't in the mood to do much buying and selling today, but they had a lot to say about this frustrating market. When is this strong earnings season going to manifest itself in stock prices? Get a few opinions in the highlights section below:

Today's Portfolio Highlights:

Stocks Under $10: When Brian Bolan bought Intrepid Potash (IPI) back in August 2017, he was most impressed with its revenues of $43.9 million. Well, this leading producer of potash certainly didn't let the editor down when it reported first-quarter total sales of $53.2 million yesterday, which was much better than the previous year's $48.7 million. Shares of IPI soared by more than 18% on Wednesday to give the portfolio the best-performing stock of the day. It's the second-best mover over the past 30 days as well with a gain of more than 25%. By the way, Stocks Under $10 also has THE BEST mover in the past month as HighPoint Resources Corp. (HPR) has jumped more than 32% in that time.

Large-Cap Trader:"Why did our Tech stocks get killed by the 10-year rates rising? The thinking out there must be that this will kill off the growth, and that will kill off the growth stock.

"Do I agree with that trader consensus -- on the effect of rising rates -- deflating U.S. GDP growth?

"Not yet.

"I would start to change my mind if we got above 3.5% on the 10-year; I would get much more worried at 4.0% on the 10-year." -- John Blank

Counterstrike:"Stocks sold off early in the morning as the S&P tried to break the 2600 level. However, the bulls had other ideas and defended the 200-day once again, causing a late-morning bounce.

"While markets continue to be volatile and shaky, earnings are still in focus. Boeing and Twitter posted great quarters, but the stocks were sold into. This is the trend we have seen since the beginning of the quarter.

"Tonight, we had a lot of action. To sum it up, we saw some great EPS numbers and a handful of stocks are up after hours. This has futures up as well, so there's a good chance that we see another green day tomorrow. However, we have to watch and see if they sell into the up moves again. If so the bulls are really going to get exhausted." -- Jeremy Mullin

Surprise Trader:"Here we go again, right back into the depth of "No Man's Land" on the S&P 500. The market has been telling us that the low 2,600s are essentially fair value. Since early February the vast majority of the price action has been centered around this area. It's letting us know that there are buyers fiercely defending the level. It also lets us know that a breakdown of this level will lead to covering, pushing the market down much lower.

"Today's swing back to positivity was a start. In the after-hours, I see the NASDAQ futures are bid. Good news from tech companies will do that. Facebook reported a 50% surge in revenue. That should lead to buying overnight during the Asian session and hopefully, into tomorrow morning. Levels to watch for tomorrow are the 200-day at 2,609 and the 50-day at 2,688.

"Tomorrow after the bell we've got a few large tech bellwethers reporting including Amazon, Microsoft, and Intel. That will help set the tone into the weekend, along with the GDP number we're getting. I'm hoping now that the market dumped close to the 200-day that the real flushing is finally over and we can start to get back to a more positive trend." -- Dave Bartosiak, who also manages Momentum Trader and Blockchain Innovators .

All the Best, Jim Giaquinto

All the Best,

Jim Giaquinto

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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