The stock market climbed early Wednesday as earnings and acquisition news stoked some big moves.
The Nasdaq composite leapt 1.5% though it continues to face sellers at the 12,500 level this week. The S&P 500 rose 0.8% and the Dow Jones Industrial Average added 0.6%.
But the Innovator IBD 50 ETF (FFTY) lagged with a 0.2% decline. Enphase Energy (ENPH), Interex (IMXI) and axonics (AXNX) all fell more than 4%.
Mosaic (MOS) led the IBD 50 with a nearly 5% jump after Citigroup upgraded the fertilizer company from neutral to buy. Mosaic, which posted a Q2 211% EPS gain last week, is now climbing above its 50-day moving average. CF Industries (CF), another fertilizer producer in the IBD 50, climbed 2.7%.
PMI Declines Again But Beats Forecasts
The service sector Purchasing Managers’ Index edged past forecasts with a 47.3 reading in July despite a weakening trend. It was the fourth straight decline in the seasonally adjusted index, S&P Global said. But while inflationary pressures remained historically elevated, input costs and output charges rose at the slowest paces for five and 16 months, respectively.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
The price of US crude oil rose 2% to $96.35 a barrel after OPEC+ agreed to only a small increase in oil production. The US and other countries pressed for a larger production boost, but Russia and other producers prefer to keep prices higher. Brent crude rose about 1%.
US Stock Market Today Overview
Last Updated: 10:08 AM ET 8/3/2022
Energy Select Sector SPDR (XLE) rose 0.6% and continues to test resistance at the 50-day line.
PayPal (PYPL) rallied 12% after the electronic payments company said it’s willing to work with activist investor Elliott Management. PayPal also added $15 billion to its stock repurchase program and reported mixed second-quarter results. The stock is trying to bottom out from a deep decline.
robinhood (HOOD) jumped 6.7% in heavy trading after the online brokerage announced Q2 results that included a 34% drop in average monthly users from a year ago. It also made a second round of layoffs, part of a cost-cutting program. Robinhood stock has been in a protracted slump.
PayPal, Ping Help Lift Stock Market
Ping Identity (PING) soared 59% in huge volume on news that the security software maker agreed to a $2.8 billion buyout from investment firm Thoma Bravo. The firm is paying $28.50 a share in cash for Ping, a premium of about 63% over Ping’s closing price Tuesday.
Evolent Health (EVH) topped earnings estimates and raised its full-year guidance Tuesday. The provider of financial management software for health care jumped 6.5% to a new high. A breakout from a 33.24 buy point failed but Evolent regained the entry. Investors may also view 35.17 as an alternate buy point.
Lithium producer Livent (LTHM) beat earnings expectations late Tuesday, and raised full-year guidance. But the stock fell 5% in heavy volume, though it continues to form a cup base.
Atlas Air Worldwide (AAWW) ascended 11% and topped a 97.23 buy point after The Wall Street Journal reported that investors led by Apollo Global Management (APO) are in talks to acquire the air freight company.
Match Group (MTCH) plunged more than 20% in big volume, setting back a rebound attempt for the laggard stock. The dating app company missed sales estimates and posted a loss for the quarter and said Tinder app CEO Renate Nyborg is leaving the company.
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