Stock Market Near Session Highs At Midday; IBD 50 Index Lags

The major stock market indexes are strengthening Wednesday in the noon hour, and are near the highs of the day. Investors remain cautious with another potential big interest-rate hike in store this month.

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The Nasdaq gained 1.1% and is trying to snap a seven-day losing streak. The S&P 500 added 1%. The Dow Jones Industrial Average climbed 0.8%. Small caps were in line with the other indexes, with the Russell 2000 index up 0.9%.

Investors have been selling big-tech stocks on worries of a big September interest-rate hike. But today, the Nasdaq 100-tracking ETF Invesco QQQ Trust (QQQ) added 0.8%.

NYSE and Nasdaq volume dropped double-digit percentages compared to the same time on Tuesday.

Crude oil is down 4.3%, trading at $83.15 per barrel and at a seven-month low on fears of recession and lessening global demand.

Natural gas lost another 3.9% despite expected strong demand from the current heat wave in Texas and other U.S. regions. The SPDR Select Energy ETF (XLE) lost 1.4%.

Bitcoin futures reversed course and gained 0.8% but are still below the $19,000 level, at $18,785.
The German DAX stock index was up 0.5%, the London FTSE 100 shed 0.7% and the Paris CAC 40 gained 0.1% in afternoon trading.

The yield on the 10-year U.S. Treasury note ticked down to 3.30%.

Markets now project a 80% chance the Fed will raise interest rates by 75 basis points at this month’s meeting. Only 20% of market watchers expect a 50-basis-point hike.

Mortgage Applications Continue To Drop

The MBA mortgage applications for the week ended Sept. 2 ticked lower once again, with the Composite Index dropping 0.8%, the Purchase Index shedding 0.7% and the Refinance Index losing 1.1%. Demand is waning, with mortgage applications at a 22-year low, as mortgage rates continue to climb. The 30-year fixed rate is approaching the 6% level.

July International Trade in Goods and Services showed a deficit of $70.6 billion, slightly higher than the consensus of negative $70.5 billion. The number is an improvement over the prior $79.6 billion deficit.

Stock Market: Big Winners And Losers

SunPower (SPWR) popped 9.4% as solar stocks saw strength on increased European demand as energy prices soar.

Pinterest (PINS) gained 4.8% after Wolfe Research upgraded the stock to outperform from peer perform with a 28 price target. Shares are around 66% off their 52-week high. Its suboptimal ratings include a 35 Composite Rating.

UiPath (PATH) plummeted 13.5% after issuing lower-than-expected Q3 and full-year fiscal 2023 sales guidance. The move prompted several analysts to cut the stock’s price target, including BMO Capital, which dropped the target to 15 from 21 per share.

Norwegian natural gas company Equinor (EQNR) gapped down 5.8% in heavy volume, triggering the 7% to 8% sell rule. Flex LNG (FLNG) dropped 8.4% in similar fashion, also triggering the 7% to 8% sell rule. Both are among many energy stocks sliding today.

Newell Brands (NWL) sank 0.6% after the company lowered its Q2 and 2022 net sales expectations. But the stock bounced back and was flat around 10:30 a.m. ET. Still, shares are 36% off the 52-week high.

Stocks Moving On Earnings

Coupa Software (COUP) jumped 14% after it beat July-ended fiscal Q2 EPS and sales numbers after market close Tuesday. Management issued Q3 and full-year fiscal 2023 EPS and revenue guidance higher than analysts expected, and announced a revised $100 million stock buyback program.

Academy Sports and Outdoors (ASO) rose 14.1% after reporting a beat on Q2 earnings per share, but a miss on sales numbers. The company raised its 2022 adjusted EPS guidance.

Chinese EV maker Nio (NIO) erased the morning’s loss and climbed 3.3% after reporting a larger-than-expected Q2 loss and diminishing gross margins. The company beat on Q2 revenue expectations, but gave a lower-than-expected Q3 revenue outlook.

Stock Market Today: IBD 50 Stocks On The Move

The IBD 50 ETF (FFTY), a measure of growth stocks, shed 0.3%, lagging the major indexes due largely to a large number of energy stocks in the index.

Wesco International (WCC) rallied 1.2% after announcing it entered into an agreement to acquire Rahi Systems for $217 million. Rahi is a privately-held data solutions provider based out of Fremont, Calif.

Wesco tried to break out of a double-bottom base but barely moved above the 144.52 buy point, later triggering a sell signal.

Biosciences company Repligen (RGEN) rose 2.9% and is finding support at the 50-day moving average. RGEN is ranked No. 4 in the medical products industry, ranked No. 85 out of the 197 industry IBD ranks. Repligen holds a 96 EPS Rating and a 91 Composite Rating.

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