The Dow Jones Industrial Average took a tumble in early Wednesday trading after reports of a potential delay in the U.S.-China trade deal. Prior to that, investors were hit with a concerning report on Q3 U.S. productivity, showing a 0.3% drop vs. the expected 1% gain. But the market rebounded in the afternoon.
XCVS Health (CVS), Wendy's (WEN) and Humana (HUM) all posted strong gains following their upside earnings surprises on Wednesday before the market opened.
Stock Market Today
Generic drugmakers, chips and energy were among the biggest industry group decliners in today's stock market. Both the Dow Jones industrials and the S&P 500 closed just one point off the day's open, while the Nasdaq lagged, closing lower 0.3%. Chips weighed on the Nasdaq. VanEck Vectors Semiconductor ETF (SMH) fell 0.6%. Volume was modestly higher on both the NYSE and Nasdaq vs. Tuesday's close.
Earlier Wednesday, Reuters reported that the much-awaited provisional trade deal between China and the U.S., originally expected mid-November, might be delayed until December. The surprising headline rattled investors, as all eyes are on the China trade deal until a more permanent solution materializes between the two major economic forces.
Dow Jones Stocks
As for the major Dow stocks, Merck (MRK) led the index with a 0.4% gain. Procter & Gamble (PG) and McDonald's (MCD) both were up more than 1% each.
Walgreens Boots Alliance (WBA) closed 2.8% lower after rallying Tuesday on news the company has considered going private. Shares were up 8% at one point after Reuters reported the news. As for other blue chip decliners, Exxon Mobil (XOM) and Chevron (CVX) fell 2.2% and 1.7%, respectively. Both stocks advanced the last three sessions, while oil prices rose alongside trade-deal hopes.
IBD Stocks To Watch
The Innovator IBD 50 ETF (FFTY), despite falling 0.3% on Wednesday, still holds a 20.6% gain year to date.
IBD 50 software stocks with big gains today included Fortinet (FTNT) and Upland Software (UPLD).
Cybersecurity play Fortinet hit a key buy point of 92.89. The stock sits inside its 5% buy zone and has an impressive EPS Rating of 99, a Composite Rating of 93 and a Relative Strength Rating of 83.
Fiserv (FISV), provider of financial services technology, was nearing a new buy point ahead of earnings that came out after today's close. Earnings edged past views, and the stock rose modestly. A flat base has formed with a 110.02 buy point. Part of the base is below the 50-day line, so it's not a perfect base. The stock has an IBD Composite Rating of 90 and a Relative Strength Rating of 87.
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