The major stock indexes were modestly lower early Wednesday amid rising pessimism for a U.S.-China trade deal. The Dow Jones industrials dropped about 50 points in today's stock market.
XThe Wall Street Journal reported Tuesday that trade talks could hit an impasse over large Chinese agricultural purchases. Meanwhile, the U.S. Senate on Tuesday passed a bill supporting the Hong Kong protesters. Among the Dow Jones stocks, Home Depot (HD) extended Tuesday's losses after an analyst price-target cut, while rival Lowe's (LOW) cleared a buy point after a strong earnings report. Elsewhere, top retail stock Target (TGT) surged to new highs on earnings. Top Chinese stock Pinduoduo (PDD) crashed 25% on disappointing results.
Check out Wednesday's IBD Investing Action Plan for important stock market events, like Salesforce's (CRM) investor day.
Dow Jones Falls In Current Stock Market Rally
The Nasdaq composite pared losses to about 0.1% early Wednesday. The S&P 500 also fell 0.1%, while the Dow Jones industrials gave up almost 0.2%.
All three major indexes hit record highs Tuesday. Year to date, the Nasdaq composite is up about 29%. The S&P 500 has gained about 24%, while the Dow Jones Industrial Average has climbed about 20%.
Among exchange traded funds, Innovator IBD 50 (FFTY) outperformed the major stock indexes with a 0.3% advance Wednesday. The ETF of top growth stocks reached its highest level since early September.
Dow Jones Stocks: Home Depot Stock Extends Losses
Among the Dow Jones stocks, Home Depot stock continued lower early Wednesday after analysts at Nomura cut the price target from 240 to 237, while maintaining a neutral rating. The early 1.3% loss brings the stock's two-day decline to more than 6%. On Tuesday, Home Depot stock plunged 5.4% after disappointing results.
Home Depot stock pierced its 50-day line, but is still just above a recent 219.40 entry in a flat base, according to MarketSmith chart analysis. Early Wednesday, rival Lowe's reported strong earnings results, sparking a 6% advance in morning trade. Lowe's stock is breaking out past a 116.06 buy point in a cup with handle.
Elsewhere in the Dow Jones Industrial Average, Apple (AAPL) looked to fall for a second straight day with a 0.4% loss. Apple stock is in the 20%-25% profit-taking level from a 221.47 buy point in a flat base. The iPhone maker is an IBD Leaderboard stock idea.
Stock Market Earnings: Pinduoduo Stock Crashes 25%
Top Chinese stock Pinduoduo crashed as much as 25% after the company's disappointing earnings results early Wednesday. Shares pared losses to about 15% in morning trade. The Chinese e-commerce company reported a wider-than-expected loss with sales falling short of targets.
Brazilian payment processor PagSeguro (PAGS) slid 12% after the company's earnings fell short of analyst estimates. PagSeguro stock reached a new recent low, as it is nearly 40% off it 52-week high.
Retail leader Target jumped 8% to new highs after the company's strong Q3 earnings results. The company also raised its full-year guidance. Target stock recently tested its 50-day line where it found support.
Top Stocks To Watch: Paycom Software Stock
Among the IBD 50 top growth stocks, Paycom Software (PAYC) is forming a new base with a 259.81 buy point. Shares rose over 5% Wednesday morning, as they look to extend a win streak to nine trading sessions.
According to IBD Stock Checkup, Paycom stock has a best-possible 99 IBD Composite Rating. Investors can use the Composite Rating as an easy gauge of a stock's fundamental and technical metrics.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.
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