Dow Jones Dips While Small Caps Lead Downside; These Retail Leaders
The Dow Jones Industrial Average showed modest losses in today’s stock market as the major indexes traded near session lows. Small cap stocks led the downside, while a whipsawing Nasdaq briefly notched narrow gains.
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Dow Jones In The Stock Market Today
In early afternoon trade, the tech-heavy Nasdaq was down 0.2%. The Dow Jones industrials held a 0.5% loss, while the S&P 500 declined 0.2%. The small-cap Russell 2000 index slumped 1.1%, but was off early lows. Volume ran lower on the Nasdaq and higher on the NYSE vs. the same time on Tuesday.
Investors turned their attention to retail stocks Wednesday as several leaders reported earnings. Target (TGT) opened down more than 5% and fell below a 262.61 buy point from its Monday breakout. Shares have yet to trigger the sell signal. Yet, Target topped analysts’ third-quarter expectations after reporting a 9% rise in EPS to $3.03 and a 13% rise in sales to $25.65 billion. Comparable sales rose 12.7%.
Elsewhere, Lowe’s (LOW) beat third-quarter expectations early Wednesday, as the pandemic-era home-improvement boom remained strong throughout Q3, despite shortages of labor and some building materials. Lowe’s added 1.6%, reaching a new high, and extended above the 239.37 buy point of a three-weeks-tight pattern.
Finally, TJX Cos. (TJX) gapped above a 71.98 handle buy point after the apparel and accessories chain reported an 18% increase in earnings per share. Sales rose 24% and also beat views.
Overall, the SPDR S&P Retail ETF (XRT) fell 2.1%, though it remains above the 99.34 buy point of a long saucer base.
Growth Stocks To Watch
The growth-focused Innovator IBD 50 ETF (FFTY) lost 1.1%, outpacing the indexes. The ETF is once again testing support at its 21-day exponential moving average. Stocks weighing on the index Wednesday included Kornit Digital (KRNT) and Dutch Bros (BROS), with losses of over 9% and 5%, respectively.
After the market close, IBD Leaderboard stock Nvidia (NVDA) is set to report earnings. The chip designer and metaverse play has been trading tightly around record highs. Shares are well-extended from a recent 230.54 consolidation entry. Because the company’s chips are used in video gaming, self-driving vehicles, Bitcoin mining and the metaverse, Nvidia is a bellwether for emerging technologies.
According to FactSet, the consensus EPS estimate is $1.11 with sales of $6.82 billion.
Dow Jones stock Cisco Systems (CSCO) reports its fiscal first-quarter results after the market close.
Follow Rachel Fox on Twitter at @rachelgfox more Dow Jones and stock market commentary.
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