The stock market indexes improved in the last hour of afternoon trading, with the major indexes heading back toward the day’s highs. Sports betting stocks duked it out, with a clear winner and loser on Wednesday.
X
All the major indexes trimmed larger losses, with the Nasdaq composite now down 0.5% in stock market action. The Dow was relatively flat and the S&P 500 dipped 0.1%. The small-cap Russell 2000 was in line with the Nasdaq and lost 0.5%.
The Nasdaq appears to be finding support at its 50-day moving average. The Dow is trading above its 21-day-exponential moving average, while the S&P 500 is still below its 21-day line.
Meanwhile, the Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) retreated 0.4%. And the Innovator IBD 50 ETF (FFTY) underperformed, off 1.2%.
NYSE volume fell and Nasdaq volume rose vs. the same time on Tuesday.
The benchmark 10-year Treasury yield shed 1 basis point to 4.02%.
The Street expects Thursday’s July consumer price index and core prices to rise 0.2%, according to Econoday’s consensus. Year-over-year inflation is projected to rise to 3.3% from 3% in June, with core inflation projected to remain at the 4.8% level.
Friday, the stock market gets the July Producer Price Index. That gauge is seen rising 0.2% from June with the year-over-year up 0.7% and core prices climbing 2.3%.
Stock Market Movers: Sports Betting Stocks
Celsius Holdings (CELH) stock gapped up over 20% in heavy volume after the fitness beverage company handily beat second-quarter earnings and sales numbers late Tuesday. The Leaderboard List stock flew past the convergent point of its 21-day line and 50-day line.
Quarterly earnings grew over 300% for the last two quarters. Sales grew over 100% in Q2 and nearly 100% in the prior quarter.
Penn Entertainment (PENN) eased from larger gains, now up over 11%, after the sports betting company reported higher-than-expected Q2 profit and in-line sales. Shares retook the 50-day line but found resistance at the 200-day moving average.
The company announced it will rebrand its Barstool Sportsbook as ESPN Bet and start business in the fall. Penn will buy the exclusive rights to the ESPN trademark while it cut ties with Barstool Sports.
ESPN majority owner Walt Disney (DIS) fell 0.2%. Disney will report its fiscal third quarter earnings after the stock market close.
Competitor sports betting stock DraftKings (DKNG) fell over 9% in heavy volume on the news. The IBD 50 stock sank below its 21-day line but stopped short of its 50-day line. DKNG is on pace for its largest drop since Nov. 4, 2022 when it sank 27.8%, according to Dow Jones Market Data.
Axon Enterprise (AXON) spiked 15% following the company’s Q2 earnings and sales beats late Tuesday.
The stun gun maker reported 152% earnings growth on 31% revenue growth. The stock is on pace for its largest increase since June 1, 2020, when it rose 18.2%. It is the S&P 500’s biggest gainer today.
Other Stock Action: Solar Stock Shines
Array Technologies (ARRY) soared over 25% in heavy trading after blowing past analysts’ second quarter EPS and revenue estimates. Quarterly profit grew 422% on 21% sales growth.
Analysts expect 128% full-year profit growth this year and 43% next year. Shares of the solar storage stock retook the 50- and 200-day lines. The stock also broke out above a trend line that offered an entry around 21.50.
Language-learning app Duolingo (DUOL) popped over 8% after the firm reported a Q2 surprise profit and higher sales than projected. Duolingo also raised its full-year 2023 revenue guidance.
Shares of Super Micro Computer (SMCI) sank over 22% in huge volume despite the company reporting higher fiscal Q4 profit and sales than expected. It gave a weak AI sales forecast, according to MarketWatch.
Upstart Holdings (UPST) tumbled another 34% in heavy volume, after the company reported a 40% drop in second-quarter sales and gave Q3 revenue guidance below analysts’ estimates.
Shares are well below the 50-day line and flashed a sell signal. The cloud-based AI-lending stock has lost 50% in three days.
Nvidia (NVDA) sank over 3% to test its 50-day line, where it now seeks support. Semiconductor stocks fell in sympathy with Super Micro Computer.
Palantir Technologies (PLTR) skidded 9% and is working on its sixth straight day of losses. The AI-focused data analytics and cybersecurity stock plunged below its 50-day line, giving a sell signal. The stock is on track for its largest decrease since Nov. 7, when it sold off 11.5%.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
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Stock Market Claws Its Way Back; Sports Betting Stocks Battle It Out
