The Dow Jones Industrial Average fell as the stock market nursed a Fed meeting hangover. The Donald Trump SPAC Digital World Acquisition (DWAC) rose after a key vote was delayed. Bitcoin rose while Coinbase (COIN) posted disappointing earnings. Robinhood (HOOD) surged on results.
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 slipped 2.2% to trade at just around $88 per barrel.
Nasdaq Slips, IBD 50 Excels
The Nasdaq fared worst out of the major indexes, falling 1.7%. Cognizant Technology Solutions (CTSH) lagged as it fell 13.8% after it reported light revenue in the most recent quarter.
The S&P 500 also struggled, dipping 1.1%. Insurance play Lincoln National (LNC) struggled here, plummeting 33.1% on a Q3 loss.
The S&P 500 sectors were mixed, with energy and industrials faring best. Technology and consumer discretionary had the toughest time.
Small caps fared better, with the Russell 2000 down 0.3%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, outperformed as it rose 0.4%.
Dow Jones Today: Apple Stock Lags
The Dow Jones Industrial Average reversed late as a feeble rally attempt fell short. It fell 0.5%, or about 150 points.
Wall Street darling Apple (AAPL) was the worst performer as it fell 4.2%. The stock has been weakening following a post-earnings rally.
On the upside, Boeing (BA) was shining brightest. The aerospace giant gained 6.3%. The company revealed Wednesday it is planning to ramp up the production of new aircraft. It also expects free cash flow of $3 billion to $5 billion in 2023.
Donald Trump Stock Up After Vote Delay
Digital World Acquisition grinded 0.7% higher after a key vote was delayed. The fate of Digital World Acquisition, the Trump-linked special purpose acquisition company (or SPAC), remains up in the air.
The firm, which is trying to take the former president’s Trump Media and Technology Group public, once again punted on a key vote. The shareholder ballot on whether to approve a deadline extension to complete the merger has been pushed out until Nov. 22.
After initially failing to hold the vote in September, the SPAC’s sponsor, ARC Global Investments, contributed about $2.9 million to extend the merger deadline until Dec. 8, according to federal filings.
The vote arranged by DWAC management provides shareholders an opportunity to extend the deadline until Sept. 8, 2023.
Trump Media and Technology Group’s main product at the moment is conservative social media site Truth Social, a right-leaning alternative to Twitter.
DWAC stock was mildly positive in afternoon trading but remains down nearly 69% for the year. The Donald Trump stock is in the bottom 4% of stocks in terms of stock market performance over the past 12 months.
Coinbase Earnings Miss; Bitcoin Gains
Coinbase stock fell ahead of earnings even as Bitcoin moved higher. It closed down 8.1%. Volume was just above average.
After the close the stock initially fell before rebounding after missing some earnings views. EPS came in at $2.43 while it posted revenue of $654 million.
Transaction revenue of $366 million was also lower than expected.
“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” the firm said in a letter to investors. “While the macro headwinds are beyond our control, we continue to focus on factors within our control: narrowing our product focus to deliver amazing customer experiences and reducing our operating expenses.”
One bright spot was the fact it reported 8.5 million monthly transacting users. While this was lower than the previous quarter’s 9 million it was above analyst expectations.
COIN stock is now trading below all its major moving averages. Shares are down nearly 77% since the start of the year.
Bitcoin is continuing to struggle in a tough environment for risky assets. It was trading just above the $20,000 mark after gaining fractionally for the day.
Meanwhile, Robinhood stock soared 8.2% on earnings. It benefited from a double-whammy, posting a quarterly loss that was smaller than expected while revenue topped Wall Street views. The trading platform company remains down more than 33% so far in 2022.
Leaderboard Play Fades Late
Leaderboard stock Cheniere Energy showed strength by fighting its way back above a buy point after falling on earnings. It ended the day 0.9% lower due to late pressure.
LNG initially dipped after a bad earnings miss. It is now just below a 178.72 entry.
Cheniere reported a net loss of $9.54 per share, missing analyst views for EPS of $5.72. It was also wider than the previous year’s loss of $4.27 per share. Revenue rose 175% to $8.85 billion, up from $3.2 billion a year earlier. This was better than expected.
Cheniere confirmed its full-year guidance and expected adjusted EBITDA of $11 billion to $11.5 billion. The company is also projecting distributable cash flow of $8.1 billion to $8.6 billion in 2022.
Meanwhile, Plains GP topped a cup-base entry of 13.12. It was moving higher in above-average volume following earnings. The oil pipeline firm posted EPS of 36 cents, much better than the previous year’s loss of 12 cents per share. Revenue also climbed 33%.
Earnings performance is still not ideal though, with its EPS Rating coming in a 45 out of 99.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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