Dow Jones up as stocks struggle;  New Cathie Wood Buy Rockets On This;  Bitcoin loses key level

The Dow Jones Industrial Average edged up slightly as stocks struggled. New Cathie Wood purchase Twilio (TWLO) jumped after the company announced layoffs. Coinbase (COIN) and Riot Blockchain (REBELLION) were mixed as Bitcoin fell below a key level. Starbucks (SBUX) popped up.

Meanwhile, a trio of energy stocks gave bullish signals. Devon Energy (DVN), ConocoPhillips (COP) and Northern Oil & Gas (NO) all available purchase options.


Volume was lower on the Nasdaq and the New York Stock Exchange, according to early data.

The yield on the benchmark 10-year Treasury note fell one basis point to 3.41%. West Texas Intermediate crude rose nearly 2% to near $89 a barrel.

Stocks across the board have struggled to make decisive gains following the new inflation data. The PPI, which measures wholesale inflation, showed that producer prices fell 0.1% in August from the previous month. This was in line with expectations. Wholesale inflation rose 8.7% from a year earlier, down from a 9.8% jump in July and in line with Econoday forecasts.

Nasdaq up as IBD 50 shines

The Nasdaq, which fell on Tuesday, was the best performer of the major indexes. It turned higher but closed off session highs, gaining 0.7%. Modern (MRNA) performed best as it gained 6.2%.

The S&P 500 also made a comeback, ending the day up 0.3%. Nucor (NUE) fell 11.3% on disappointing guidance.

S&P 500 sectors were mixed, with energy and user judgment the best results. Real estate lagged behind the most.

Small caps tumbled, but the Russell 2000 eventually managed to eke out a 0.3% gain.

The Innovator IBD 50 ETF (FFTY) performed well due to the solid energy exposure. It closed the day up 2.2%.

Dow Jones Today: Chevron Stock, JNJ Lead

The Dow Jones Industrial Average gave back some gains but closed lower, rising 0.1%.

Chevron (CVX) was the best performer as energy stocks performed well. CVX shares ended the session up 2.4%.

It just hangs on Johnson and Johnson (JNJ), resulting in a gain of 2.1%. He was promoted after the firm announced it would buy back up to $5 billion worth of stock.

Honeywell International (WE RESPECT) was the worst. The aerospace play was near the bottom of the session as it fell 2.7%.

Cathie Wood: Twilio Stock Jumps Against Cull

Cathie Wood was active in the stock market on Tuesday, adding shares to ARK Innovation ETF’s holdings (ARKK), even as other investors headed for the exits.

Among the moves, she snapped up just over 47,000 shares of Twilio, a purchase that immediately paid off as the stock jumped 10% today.

Shares of TWLO soared after the firm disclosed in an SEC filing that it was cutting 11% of its workforce. The news was welcomed by investors.

With the new additional shares, ARKK now owns a total of 4,321,544 shares of Twilio stock.

Wood also added to his holdings from TuSimple (TSP) and DraftKings (DKNG), both of which jumped about 6%.

Not all of the well-known investor’s purchases on Tuesday made such bullish moves, however.

Roku (ROKU) and UiPath (PATH) managed to break out of the red, but squeezed out minor gains. Both stocks remain mired below their major moving averages.

The ARK Innovation ETF, which is Cathie Wood’s signature fund, remains down more than 55% so far this year.

Starbucks shares are simmering above a key guidance level

Shares of Starbucks jumped after the firm raised its guidance late Tuesday. It ended the session up 5.5%, close to its intraday highs.

SBUX was boosted after outgoing CEO Howard Schultz said the firm expects double-digit revenue and EPS growth.

Earnings per share are expected to grow 15% to 20% annually over the next three years. This was from previous guidelines. It also offered an improved outlook for global and U.S. same-store sales growth.

Starbucks shares rallied well after the news, clearing the key 200-day moving average once again.

However, SBUX has a lot of work to do to recoup its losses from 2022 as it remains down more than 20% for the year.

Coinbase shares gain as bitcoin reverses

Coinbase was able to finish the session strong. It held on to most of its gains, rising 4.6%. However, the volume was less.

The stock, which cut its full-year forecast last month, has retreated further from its 50-day moving average. COIN shares are down more than 69% since the start of 2022.

Bitcoin fell below the key $20,000 mark after turning lower. It fell nearly 2% in the last 24 hours, according to CoinDesk.

Other cryptocurrency games have fallen. Grayscale Bitcoin Trust (GBTC) down 2% as Bitcoin mining plays out Riot Blockchain (REBELLION) lost 0.9%.

Outside the Dow Jones: 3 Flash Buy Signals for Energy Stocks

A trio of impressive energy stocks made gains on Wednesday.

Devon Energy offered a buying opportunity after clearing an early entry as well as Monday’s high of 71.57. He is also looking for a cup-handled buy point of 75.37.

In four of the past five quarters, Devon has posted triple-digit revenue growth. Over the past three years, the company has generated an average annual sales growth of 26%.

DVN saw an increase in exposure on the prestigious IBD ranking list today. Devon Energy is also a favorite of celebrity investing guru Jim Cramer.

ConocoPhillips is also subject to action after clearing a cup-handled entry of 115.57.

The strong overall performance is reflected in an IBD Composite Rating of 99. But it’s a later, fourth base, meaning extra attention is needed.

Northern Oil & Gas is also in a buy zone above the 33.60 cup handle entry.

The stock is in the top 4% of stocks in terms of price performance over the past 12 months.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.


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