Stock Market Bounces Ahead Of Fed Minutes; Small Caps Lag

The major stock market indexes climb off lows after steep morning losses but are still trading in the red, ahead of the 2 pm Fed minutes. The Dow Jones Industrial Average is holding above its 200-day moving average.




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The Nasdaq composite is down 1.3% so far while the S&P has shed 0.7%. The Dow Jones Industrial Average is holding up slightly better, losing 0.5%.

The iShares Russell 2000 small-cap ETF (IWM) is leading the downside, off by 1.7%, and now trading below its 200-day moving average.

The Nasdaq 100-tracking ETF Invesco QQQ Trust (QQQ) has declined 1.3%.

The SPDR Select Energy ETF (XLE) has gained 0.9% while the crude oil futures contract is trading higher by 1.4%, to $87.73 per barrel. US natural gas futures have pulled back 0.9% but remain above the $9 level.

Bitcoin futures have fallen 2.4% to $23,375.

NYSE volume is down 5.5% while Nasdaq volume is higher by 3.5%, compared to the same time on Tuesday.

Stock Market Digest Mixed Retail Sales

July Retail Sales came in unchanged versus an expected 0.1% increase. The pared-down measure excluding cars showed a positive surprise of 0.4% versus the expected -0.1%. Retail sales excluding both vehicles and gas came in at 0.7% versus the 0.3% consensus.

The Fed minutes from the July 27 policy meeting are scheduled for release at 2 pm ET today.

June Business Inventories came in as expected, posting a 1.4% rise, consistent with May’s 1.4% and April’s 1.3% increases. Inventory levels are an important metric of short-term production activity.

Yield on the 10-year Treasury note rose to 2.91%.

Retailer Stocks Sink On Earnings

Target (TGT) has shed 2.4% after meeting Q2 sales expectations but missing on earnings.

Shipping company FedEx (FDX) is down 2% after a Target executive said they expect to significantly reduce airfreight costs.

Discount retailer TJX (TJX) has rebounded off lows, up 3.5% after beating Q2 earnings-per-share but missing on sales.

Management lowered guidance for annual earnings and same-store sales, a key measure of retailer performance. TJX still shows a rising Relative Strength Rating, now at 82.

Krispy Kreme (DNUT) plunged 13.5% in heavy volume, after missing Q2 sales and EPS numbers.

Medical Supply Company Pops, Meme Stock Soars Again

Agilent Technologies (A), a medical supply and testing company, gapped up 7.1% on very heavy volume, after a positive fiscal Q3 report that beat both EPS and sales expectations. Management also raised Q4 and FY22 guidance above analyst estimates.

The pop in Agilent share price has pushed the stock above its 200-day moving average.

Bed Bath & Beyond (BBBY) popped 22.9% on very heavy volume as “meme stock” traders drive up the share price. Trading was temporarily halted for a second day in a row. The stock hit the 30 level earlier in the session.

coal miner Arch Resources (ARCH) gained 2.3% and is building the right of a deep cup base with a 178.90 buy point. The company boasts a best-possible 99 composite rating.

Analysts expect annual EPS of $60.23 per share in 2022, followed by a drop to $33.33 in 2023. Quarterly EPS and sales have posted triple-digit growth for the last three quarters.

Today’s Stock Market: IBD 50 Stocks Moving Today

The IBD 50 ETF (FFTY), a measure of growth stocks, is off 1.4%.

Petroleum refiner and transporter Delek US (DK) leads the IBD 50 list today, up 3.5%. The company reported a Q2 EPS beat on Aug. 4. Delek holds a strong 91 Composite Rating, of 99. Goldman Sachs has a $33 price target and buy rating on the stock.

Sigma Technologies (SIGA), a drugmaker with a monkeypox treatment, has scaled back with 0.3% decline, after rising to 25.72 earlier in the session. Siga holds a best-possible 99 Relative Strength Rating.

IBD Weekly recently featured the stock in an Internet & Technology feature.

ZIM Integrated Shipping (ZIM) an ocean cargo shipper, is down 8.2% on big volume, dropping below the 21-day, 50-day and 200-day moving averages.

Chip stock Axcelis Technologies (ACLS) is off 4.4%, dropping below its 21-day exponential average. The relative strength line on the MarketSmith chart is also deteriorating.

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