The Dow Jones rose on Wednesday morning, while the S&P 500 and Nasdaq retreated more sharply after Tuesday’s bearish sell-off. Treasury yields fell.
X
General Mills (GIS) rose with good gains, eliminating an early point of purchase. Bed Bath & Beyond (BBBY) fell in big quarterly losses, plus the household goods retailer and “meme” shares fired its CEO.
FedEx (FDX) unveiled long-term financial targets ahead of investors ’day. FDX shares rose slightly.
China’s electric vehicle manufacturer Nio (NIO) skated when it refuted a short sales report. Tesla (TSLA) fell short of autopilot work. Nio and Tesla will report sales later this week, along with Xpeng (XPEV), Li Auto (LI) and BYD (BYDDF).
Upstart Holdings (UPST) and Carnival Corp. (CCL) fell with significant Morgan Stanley target price cuts.
Dow Jones today
The Dow Jones rose 0.1%. The S&P 500 fell 0.35%. The Nasdaq fell 0.6%.
GDP in the first quarter fell at an annual rate of 1.6% compared to the previous revision of a decline of 1.5%. Analysts had expected a 1.4% drop. In particular, growth in consumer spending was revised downwards to a sluggish pace of 1.8% from 3.1%.
The 10-year Treasury yield sank from 3.21% to 3.16%.
The price of crude oil rose by 1%. OPEC + meetings take place on Thursday, but it is unclear whether the cartel will make large supply moves that will affect prices significantly.
Bitcoin fell to the $ 20,000 level. The price of Bitcoin hit an 18-month low of about $ 17,800 on June 18, but rebounded above $ 21,000 late last week.
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Stock market meeting
The Dow Jones Industrial Average fell 1.6% on the stock market on Tuesday. The S&P 500 index slipped 2%, with Enphase Energy (ENPH) among the worst performing. The Nasdaq compound sold 3% off. The small Russell 2000 capitalization fell 1.85%.
The Nasdaq fell below the lows of its Friday follow-up day. It is a very bearish signal. Research shows that there is a 90% chance that the rally will eventually fail when this happens. The rally does not officially end until the indices lower their recent lows.
The Dow Jones did not close below the follow-up day lows, but it is not far off.
Tuesday’s move pushed the market to “increase the trend under pressure.”
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General Mills
General Mills earnings rose 23% to $ 1.12 per share. Revenue rose 8% to $ 4.89 billion. Both outperformed analysts in the fourth quarter. The grain giant also raised its quarterly dividend by 3 cents to 54 cents per share.
GIS shares rose 4% to 73.15, working with a 74.09 buy point from a cup base, according to MarketSmith analysis. General Mills shares are recovering from near their 50-day line. A move above Tuesday’s intraday high of 71.71 would offer early entry.
The relative strength line of GIS shares is at an all-time high.
Bed bath and gains beyond
Bed Bath & Beyond reported a much worse-than-expected first-quarter loss. Revenue fell 25 percent to $ 1.46 billion, also gone.
Mark Tritton left the position of CEO and Board of Directors. Sue Gove, a board member, will act as interim CEO.
BBBY shares fell 22% to a new two-year low.
FedEx Objectives
The shipping giant FedEx, ahead of Wednesday’s Investors Day event, sees annual earnings per share growth of 14% to 19% through fiscal 2025, with a consolidated operating margin of 10%.
Committed to an adjusted dividend payment ratio of at least 25%
FDX shares fell 2%. Shares rose above the 200-day moving average last week after reporting better-than-expected gains.
Big target price cuts
Morgan Stanley downgraded Upstart shares to underweight and lowered its target price to 19 from 88. UPST shares fell 9% to 32.70.
Morgan Stanley also lowered its Carnival stock price target to 7 out of 13, but introduced the possibility that stocks could drop to zero in the worst case. CCL shares skated 14 = 3% to 9.
Tesla autopilot cuts
Tesla is closing an office in San Mateo, California, eliminating 200 low-level positions from its autopilot team. The electric vehicle giant is making radical layoffs as CEO Elon Musk fears a recession.
Shares of Tesla fell nearly 4%. On Tuesday, Tesla shares fell 5% to 697.99, below its 21-day line.
In early July, perhaps Saturday, Tesla will release global production and delivery figures for the second quarter. Investors can expect a substantial drop from the first quarter, due to the shutdown of the Shanghai plant and the slow recovery due to Covid blockades in China.
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Nio refutes the short seller report
Nio said a Tuesday report by short seller Grizzly Research “has no merit and contains numerous errors, unsupported speculation and misleading conclusions and interpretations.”
Grizzly accused Nio of accounting fraud for increasing revenue and net margins. Nio shares sank 5%.
Nio will launch sales on Friday, June, along with China’s electric vehicle startups Li Auto and Xpeng. EV and battery giant BYD is expected to release June sales on Saturday and Sunday.
Shares of Li Auto fell 1%, falling further below a buy point after a big rise. Meanwhile, XPEV shares lost 5%.
BYD shares fell 3.3% to 40.05, staying above a 39.81 hit point with a handle.
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