The stock market fell Wednesday afternoon. It dropped over the last half hour to its lowest levels of the day. The April Consumer Price Index showed some signs of optimism with a slight increase in prices.
The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq lowered what was a gain greater than 1% down to only 0.1%. S&P 500 fell 0.4%. The Russell 2000 fell 0.3%.
NYSE and Nasdaq volumes increased compared to the same time Tuesday.
The Nasdaq-tracking InvescoQQQ Trust (QQQ), which tracks the Nasdaq100, gained 0.1% while Innovator IBD50 ETF(FFTY) fell 0.2%.
Crude oil fell 2.1%, to $72.13 a barrel. Gold futures fell 0.3% to $2,037. Bitcoin reversed its course and fell 1.5% to $27330.
Odds Rise For No June Rate Hike
The yield on the 10-year U.S. Treasury fell 9 basis points, to 3.43%. CME FedWatch shows that there is a 90% chance of no rate increase at the June Fed Meeting.
The European stock market was down. The German DAX fell 0.4%, and the Paris CAC dropped 0.5%. London's FTSE closed the day with a 0.3% drop.
The consumer price index for April increased by 0.4% as expected, and 4.9% annually compared to the 5% anticipated. The reading was lower than the 5.0% of March.
Thursday morning is the day for the producer price index. Econoday predicts that the April Producer Price Index will increase by 0.3%, compared to a 0.5% decrease in March. The projected annual increase is 2.5%. This is down from 2.7%.
Stock Market Earnings Mover
Airbnb (ABNB), which reported a better-than-expected Q1 top line and bottom line, fell over 10%. However, it booked fewer nights than analysts expected.
The 50-day average is a warning sign, but the 200-day average was a supporter.
ABNB's stock is set to drop the most since November 2, when it fell 13.4%.
After reporting Q1 sales and earnings that were better than expected, Celsius Holdings (CELH), jumped 22% on heavy volume. Fitness beverage stock broke through a cup-base with a buy point of 122.34, lifting it over the 5% zone.
The relative strength line reached a new 52-week high. This report led several analysts to increase their price target on the stock.
IBD 50 stock Duolingo (DUOL) popped 8.2% in heavy volume after the language-learning app posted a smaller-than-expected Q1 loss and a beat on sales.
The shares are now above the 20% profit zone for a long-term consolidating base, with a purchase point of 113.46. The stock is now in a good area to buy after this week finding support near the 10-week moving mean.
The management raised its revenue guidance for 2023. Analysts expect earnings per share of $1.37 in 2023 compared to a loss per share of $1.51 for 2022.
IBD 50 stocks and stun gun maker Axon Enterprise(AXON), despite beating Q1 top- and bottom-line results, plunged by 16%.
Li Auto (LI), the Chinese EV manufacturer, has soared by over 14% since it announced better-than expected Q1 adjusted bottom-line numbers and provided guidance.