Dow ends lower Wednesday as stock price recovery attempt fails: Live update

The Dow Jones Industrial Average closed lower Wednesday afternoon after volatile trading.

The 30-stock index fell 68.61 points (0.20%) to 33,550.27. Meanwhile, the S&P 500 rose 0.02% to settle at 4,274.51. Meanwhile, the NASDAQ Composite Index rose 0.22% to end at 13,092.85.

— Lisa Kailai Han, Sarah Ming

September has so far lived up to its reputation as a historically weak month for stocks. However, Greg Bask of AXS Investments expects the market to pave the way for “select buying opportunities” from October through the end of the year.

The CEO of AXS Investments said this month’s pullback created a good entry point for investors to buy stocks. He recommends focusing on alternative investments in commodities as he expects market turmoil to continue.

He added: “Companies that have strong fundamentals and are overly beaten represent good opportunities going forward.”

— Lisa Kailai Han

AllianceBernstein said Dell’s enduring competitive advantage, cheap valuation, artificial intelligence order backlog and potential for revenue growth should drive the company’s stock price higher.

The computer maker’s stock has risen more than 70% since the beginning of the year. Nevertheless, analyst Toni Sacconaghi believes the company still has upside potential and raised his price target from $70 to $80 in a note on Tuesday. This represents a 16% increase from the stock’s closing price of $68.93 on Tuesday afternoon.

“On the positive side, we believe Dell is a best-in-class operator, growing faster than its peers (mid-to-high single-digit EPS and FCF) and should warrant a higher multiple. ” Sacconaghi wrote. “We also see potential catalysts for index inclusion and increased capital returns.”

— Lisa Kailai Han

A government shutdown will create significant uncertainty for defense companies that rely on federal funding, but that doesn’t mean investors won’t bail out their stocks, Morgan Stanley analyst Kristin Liwag said. That doesn’t mean it won’t happen.

“In our view, the potential impact of a closure is highly dependent on duration. While a short-term closure may result in minimal disruption to Defense Prime, the longer the closure lasts, the greater the risk.” ,” Liwag said in a note to clients. on Tuesday night.

If the shutdown is resolved quickly, defense stocks could outperform the rest of the market in the weeks following the resolution, as happened in 2013.

“In our view, the weakness due to the shutdown could be a tactical buying opportunity,” Liwag said.

— Jesse Pound

UBS analyst Peter Grom initiated coverage of Elf Beauty on Wednesday with a buy rating and a $138 price target.

“We believe ELF can drive +47%/+20% organic growth in FY24 and FY25 through innovation-driven share expansion across the mass beauty industry,” Grom said in a note. I am writing. “We believe this increased flow-through will allow ELF to maintain its current premium valuation, resulting in stronger earnings growth that will reward shareholders.”

Grom said the company’s skincare category, which currently accounts for about 18% of sales and is growing rapidly, and international growth as a driver of Elf Beauty’s top-line potential, is an “underappreciated” category. He pointed out the runway.

Shares were trading 0.8% higher on Wednesday. The stock price has increased more than 99% this year.

— Peer Singh

Meta’s stock price fell 3.6% in Wednesday trading. In the early afternoon, the company announced the release of its latest Quest 3 VR headset.

This headset is more expensive than Meta’s previous offerings, but it has new features such as a better screen, a more powerful chip, and an emphasis on passthrough. Pass-through functionality emphasizes the immersive nature of the device by allowing users to blend the digital display with the external real-world environment.

Meta stock is up more than 139% since the beginning of the year.

Levi Strauss & Co. rose more than 0.7% after TD Cowen’s bullish call for the clothing maker.

Analyst Oliver Chen initiated coverage of the stock with an Outperform rating on Wednesday. He noted that the company’s strong brand and trends should work in its favor, allowing it to expand its direct-to-consumer business and international presence.

“Levi’s believes we are in the early stages of a virtuous cycle for denim, with new fits and styles created by young, fashion-conscious consumers,” he said in a note to customers. “Its ‘icon’ status as a heritage brand is clear. ”

Chen’s price target indicates he believes the stock could rise about 23.8% from Tuesday’s closing price.

— Alex Harring

Three energy companies make up the top four gainers on the S&P 500 so far this week.

Medical device company ResMed was the biggest gainer since the beginning of the week, up 7.5% as of Wednesday afternoon.

Energy stocks were the next biggest gainer as oil prices continued to rise. Apa Corp. rose 5.5% for the week, followed by EOG Resources and Pioneer Natural, which rose more than 5%.

— Ha-Kyung Kim

The Dow Jones Industrial Average was the biggest decliner among the three major indexes on Wednesday, weighed down by declines in Johnson & Johnson and Walgreens.

Both stocks fell about 2% during trading. Verizon, Merck and McDonald’s were also the worst performers, falling more than 1.5%.

The index as a whole fell by about 0.5%. Chevron, Intel, and Caterpillar bucked this trend among the 30-stock index, with all three rising more than 1%.

— Alex Harring

Utilities was the biggest laggard in the S&P 500 index, with the sector falling 1.4% in intraday trading.

NextEra Energy was the worst performing stock in the sector, falling more than 6%. American Water Works Company fell more than 1%.

— Sarah Min

According to BTIG, the S&P 500 could soon test the 4,200 level as rising yields, rising oil prices and a strong dollar continue to weigh on stocks.

“We believe fixed income is the closest to a reversal of the three, but conditions are likely to remain turbulent until the end of the quarter,” BTIG’s Jonathan Krinsky said in a note Wednesday. “All of this continues to suggest that his SPX tests are below 4,200.”

The broader index was last trading above the 4,250 level.

— Sarah Min

These are the stocks making the biggest moves during midday trading.

• Media Stocks — Some media and studio stocks rose on Wednesday after the nearly 150-day writers’ strike ended. Shares of Warner Bros. Discovery and Paramount Global rose more than 2.5%.
• MillerKnoll — Furniture stocks soared more than 27% after the company reported first-quarter fiscal 2024 earnings that beat Wall Street expectations and raised its full-year profit outlook.
• Costco — Shares of the wholesale superstore rose 2.1% after a fourth-quarter profit beat. Costco executives noted that store foot traffic has increased, with member numbers up 8% from a year ago.

Here’s the complete list of stocks moving at noon:

— Samantha Subin

Bank of America named Occidental Petroleum a top candidate, sending the Houston-based energy producer’s stock price up 30%.

“Within our oil-weighted coverage, OXY can take full advantage of near-term oil strength, while capital efficiencies, deep drilling balances, and Berkshire ‘puts’ may help mitigate downside risk. Yes,” the Wall Street firm said in a note.

Warren Buffett’s Berkshire Hathaway has been buying hot spots in Occidental this year and now owns a quarter of the oil giant’s stock.

— Yun Lee

Chargepoints, which provide charging stations for electric vehicles, could see a strong recovery, UBS said.

Analyst Robert Jamieson opened the stock with a buy rating, saying the deteriorating sentiment around chargepoints creates an “attractive risk/reward” profile for investors. Shares rose 4% in Wednesday morning trading.

CNBC Pro subscribers can read more here.

— Peer Singh

Stocks fell to session lows as the market faced rising oil prices and bond yields.

Just before 11 a.m. ET, the three major indexes were trading at their worst levels so far in Wednesday trading. The Dow Jones Industrial Average fell more than 100 points (0.3%). The S&P 500 and Nasdaq Composite both fell about 0.1%.

— Alex Harring

Oil prices rose more than $1 a barrel on Wednesday, boosting energy stocks and increasing pressure on the broader stock market.

Brent crude oil futures rose $1.77, or 1.9%, to $95.73 per barrel. US West Texas Intermediate crude oil futures rose $2.62, or 2.9%, to $92.98.

Energy stocks rose on the gains, with the S&P 500 index up 1.8% in intraday trading. Occidental Petroleum and Halliburton shares each rose more than 3%.

However, the stock price has fallen from its highs. The Dow Jones Industrial Average fell more than 100 points, or 0.3%. The S&P 500 and Nasdaq fell 0.1%.

— Sarah Min

According to Morgan Stanley, toy maker Mattel Inc. is a bright spot even as the consumer business environment looks shaky.

Analyst Megan Alexander initiated an overweight rating on Mattel on Wednesday with a top pick. The stock is trading 4% higher.

“MAT is trading well below historical levels for reasons including (1) corrections turning positive, (2) proving resilient amidst macro deterioration, and (3) monetization. “We expect the stock to be revalued on both an absolute and relative basis.”The impact of the Barbie movie has made it a strong IP. ” Alexander wrote.

CNBC Pro subscribers can read more here.

— Peer Singh