The major stock indexes rallied in today's stock market on slowing inflation but gains faded as Apple (AAPL) moved to new recent lows. The Labor Department reported slower-than-expected core CPI inflation in October. The Dow Jones industrial average jumped more than 200 points, but then pulled back. Dow Jones member Apple stock is extending a four-day losing streak, while Tesla stock continues to act well in the face of a weak market environment. (For updates on this story and other market coverage, visit the Stock Market Today.)
X
The Dow Jones industrials and the S&P 500 index were still up 0.2%. The tech-heavy Nasdaq composite was flat after rising more than 1% soon after the open.
Stock Market Earnings: Canada Goose Flies
Among companies reporting earnings, winter outerwear retailer Canada Goose (GOOS) soared 17% on strong fiscal-Q2 earnings results before the stock market open. The stock is breaking out above a volatile double bottom's 65.92 buy point.
Marijuana stocks Canopy Growth (CGC) and Tilray (TLRY) declined 8% and 9%, respectively, after both posted their quarterly earnings results. Both marijuana stocks are well off their 52-week highs and below their 50-day moving average lines.
Dow Jones Stocks: Apple Stock Hits New Low
Dow Jones name Apple stock tried reclaiming its long-term 200-day moving average line, but reversed lower to trade down 1.5% to a four-month low. Early Wednesday, Guggenheim downgraded Apple stock from buy to neutral and removed the 245 price target.
The 200-day line is a support level that could signal a potential bottom for the iPhone maker. Apple stock has found support near its 200-day line on three separate occasions since the start of the stock's move back in late 2016. But it's starting to lose sight of that now.
After the stock market close, Cisco Systems (CSCO) will report its fiscal-Q1 results. Analysts expect the networking giant to earn 72 cents per share on revenue of $12.87 billion. The stock is forming a flat base with a 49.57 buy point.
Tesla Stock Outperforms
Automaker Tesla (TSLA) outperformed the stock market Wednesday, rising about 0.7% in morning trade. Tesla stock is building a cup-shaped base with a 387.56 buy point, but may be adding a handle to that formation. A handle would lower the risk-optimal entry to 357.68, but requires a couple more days of trading.
The stock's relative strength line — painted in blue ink on every IBD daily and weekly chart — is near its recent highs. The RS line measures a stock's price performance vs. the general market.
IBD 50 Stocks: Planet Fitness Rebounds
Among the leading growth stocks, Planet Fitness (PLNT) gained 2% in morning trade. Shares found support at their 50-day line after a sharp pullback to the support level Friday and Monday.
Meanwhile, Abiomed (ABMD) extended losses to a fourth straight day with a 2.6% fall. The medical stock is nearly 30% off its 52-week high after Monday's 16% plunge.
YOU MIGHT ALSO LIKE:
How To Invest In The Stock Market
