The Dow Jones Industrial Average fell as the stock market nursed a hangover from the Fed meeting. Donald Trump’s SPAC Acquisition of the digital world (DWAC) rose after a key vote was postponed. Bitcoin rose while Coinbase (COIN) posted disappointing results. Robin Hood (HOOD) jumped on the results.
Meanwhile, a few noteworthy stocks made bullish moves. Ranking Stock Energy Cheniere (GNL) attempted to stay in a buy zone as Plains GP (PAGP) tested a point of purchase.
Volume was down on both the Nasdaq and the New York Stock Exchange according to early data.
The yield on the benchmark 10-year Treasury note rose 9 basis points to 4.15%. West Texas Intermediate crude oil fell 2.2% to trade at around $88 a barrel.
Nasdaq Slips, IBD 50 Excels
The Nasdaq fared the worst of the major indexes, falling 1.7%. Cognizant technology solutions (CTSH) lagged as it fell 13.8% after posting light earnings in the last quarter.
The S&P 500 also struggled, falling 1.1%. Insurance game Lincoln National (LNC) struggled here, dropping 33.1% after a third-quarter loss.
S&P 500 sectors were mixed, with energy and industrials performing the best. Technology and consumer discretionary have had their toughest times.
Small caps fared better, with the Russell 2000 down 0.3%.
The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, outperformed rising 0.4%.
Dow Jones today: Apple shares are lagging
The Dow Jones Industrial Average reversed late as a weak rally attempt failed. It fell by 0.5%, or about 150 points.
Wall street darling Apple (AAPL) was the worst performer with a decline of 4.2%. The stock weakened after a post-earnings rally.
It now sits about 7% below the 50-day moving average, according to MarketSmith analysis.
On the rise, Boeing (BA) shone brightest. The aerospace giant gained 6.3%. The company revealed on Wednesday that it plans to ramp up production of new planes. It also projects free cash flow of $3 billion to $5 billion in 2023.
Donald Trump stocks up after vote postponed
Digital World Acquisition rose 0.7% after a key vote was postponed. The fate of Digital World Acquisition, the special purpose acquisition company (or SPAC) linked to Trump, remains up in the air.
The company, which is trying to take the former president’s Trump Media and Technology Group public, has once again cast a key ballot. A shareholder vote on whether to approve an extension of the deadline to complete the merger has been pushed back until Nov. 22.
After initially failing to hold the vote in September, SPAC sponsor ARC Global Investments contributed about $2.9 million to extend the merger deadline to Dec. 8, according to federal documents.
The vote organized by DWAC management offers shareholders the option to extend the deadline to September 8, 2023.
Trump Media and Technology Group’s main product at present is the conservative social media site Truth Social, a right-wing alternative to Twitter.
DWAC stock was marginally positive in afternoon trading, but remains down nearly 69% for the year. Donald Trump stock is in the bottom 4% of stocks in terms of stock market performance over the past 12 months.
Coinbase Earnings Are Missed; Bitcoin Earnings
Coinbase stock fell ahead of earnings even as Bitcoin rose. It closed down 8.1%. The volume was just above average.
After the close, the stock initially fell before rebounding after missing some earnings views. EPS hit $2.43 as it posted revenue of $654 million.
Transaction revenue of $366 million was also below expectations.
“Trading revenue was significantly impacted by stronger macro and crypto market headwinds, as well as trading volume moving offshore,” the company said in a letter to investors. “While macroeconomic headwinds are beyond our control, we continue to focus on factors within our control: reducing our focus on products to deliver amazing customer experiences and lowering our operating expenses.”
A bright spot was the fact that it reported 8.5 million users transacting per month. Although this figure is lower than the 9 million of the previous quarter, it was higher than analysts’ expectations.
COIN stock is now trading below all of its major moving averages. Shares are down almost 77% since the start of the year.
Bitcoin continues to struggle in a difficult environment for risky assets. It was trading just above the $20,000 mark after gaining slightly for the day.
Other cryptocurrency games were mixed. The Grayscale Bitcoin Trust (GBTC) rose 0.3% as Bitcoin mining plays Riot Blockchain (RIOT) plunged 6.1%.
Meanwhile, Robinhood stock soared 8.2% on earnings. It benefited from a double whammy, posting a weaker-than-expected quarterly loss as earnings topped Wall Street views. The trading platform company remains down more than 33% so far in 2022.
Leaderboard reading fades late
The Cheniere Energy ranking stock showed its strength as it climbed above a buy point after falling on earnings. It ended the day down 0.9% due to late pressure.
LNG initially fell after a bad revenue loss. It is now just below an entry of 178.72.
Cheniere reported a net loss of $9.54 per share, missing analysts’ views for EPS of $5.72. It was also larger than the previous year’s loss of $4.27 per share. Revenue rose 175% to $8.85 billion from $3.2 billion a year earlier. It was better than expected.
Cheniere confirmed its full-year guidance and expected adjusted EBITDA of $11 billion to $11.5 billion. The company also expects distributable cash flow of $8.1 billion to $8.6 billion in 2022.
Meanwhile, Plains GP topped a cut base entry of 13.12. It was moving higher in above-average volume after earnings. The pipeline company posted EPS of 36 cents, much better than the year-ago loss of 12 cents per share. Turnover also increased by 33%.
However, earnings performance is still less than ideal, with its EPS rating of 45 out of 99.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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