The Dow Jones Industrial Average erased early gains and was nearly flat in late action Wednesday. Still, the index remains near its Monday’s record of 38,000.

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The S&P 500 rose to record highs but trimmed its earlier gains to 0.3% in the stock market today. The Nasdaq led with a 0.6% gain.

Volume on the NYSE was higher and lower on the Nasdaq compared with the same time on Tuesday.

The small-cap Russell 2000 gave up all of its earlier gains and fell 0.5%.

The Innovator IBD 50 ETF (FFTY) pulled back from a 0.4% gain and remained just above a cup with handle’s entry of 24.95.

The yield on the benchmark 10-year Treasury note rose 4 basis points to 4.18%. The yield made a jump starting around 1 p.m. ET, which is when the stock indexes started to fade.

The Purchasing Managers Index early estimates for January came in above consensus, according to Econoday. Manufacturing rose to 50.3 vs views of 47.7. Services also rose to 52.9 versus a consensus of 51.

Dow Jones Stocks

Boeing (BA), Chevron (CVX) and Microsoft (MSFT) were the biggest gainers in the Dow Wednesday, while Verizon (VZ) lagged. The telecom stock is pulling back after an earnings gap up on Tuesday. On the other hand, 3M (MMM) fell further after gapping down on earnings Tuesday.

Telecom stock AT&T (T) fell more than 3% after fourth-quarter earnings missed views and its outlook disappointed. Earnings fell 11% to 54 cents per share while sales rose 2.2% to $32 billion. For 2024, the company gave a midpoint profit outlook of $2.20 per share, lower than Wall Street expectations of $2.46. The stock fell back to its 50-day moving average.

Netflix (NFLX) surged in strong volume after a strong fourth quarter. The stock held the bulk of its gains in late trades. Earnings of $2.11 a share came below views of $2.22 but sales of $8.83 billion beat analyst expectations of $8.72 billion. But the streaming giant added 13.12 million subscribers, much higher than the expected 8.69 million.

Tesla Earnings

The earnings calendar shows Dow Jones leader Intel (INTC) reporting Thursday along with chip-equipment leader KLA (KLAC). Intel is in buy range from a 10-week line and buy point of 46.66. KLA is extended.

Tesla (TSLA) reports its fourth-quarter and full-year results after the market close. Shares fell less than 0.1% in late trades and remained below the 50-day line. Analysts expect earnings to fall 39% to 73 cents per share with sales of $25.62 billion. Also in focus will be CEO Elon Musk’s comments on how the company is wading through a challenging year.

Chip Stock Rises On Earnings

Among chip stocks, ASML (ASML) rose after sales and earnings came above expectations, although the company gave a cautious outlook for the first quarter. Sales of $7.84 billion were higher than estimates of $7.43 billion, while earnings of $5.64 per share also came in higher than views of $5.16. ASML gapped up with a 10% gain.

Other earnings movers included health care stock Abbott Labs (ABT), which missed earnings views. The stock fell but remains in a saucer base with a buy point of 115.83. Intuitive Surgical (ISRG) surged in early trades but pulled back to trade 0.5% lower. Sales rose 17% with earnings rising 30% in the fourth quarter.

East West Bancorp (EWBC) has broken out of a flat base with a buy point of 74.61. DraftKings (DKNG) is trying to break out of a double bottom base at 38.97 but shares reversed lower.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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