The Dow Jones Industrial Average and other major stock indexes continued to trade mixed in late-morning action Wednesday — though the Nasdaq pared some losses — as Wall Street reacted to a surprise drop in jobs data. Among the losers, MicrosoftMSFT sold off while a artificial intelligence chip maker’s outlook helped it soar on the stock market today.
In late-morning trade, the Dow rose 0.2%, as the S&P 500 edged into positive ground. The tech-heavy Nasdaq composite dipped 0.1% in recent action after trading 0.4% lower earlier. Small caps on the Russell 2000 outpaced the market with a 0.7% climb.
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AI Chip Stock Soars On Data Center Outlook
Among chips, Marvell TechnologyMRVL soared 6% on its data center sales outlook. For the third quarter, earnings of 76 cents per share beat views by 2 cents while $2.1 billion in sales met estimates.
The company said it expects data center revenue to grow 25% next year. Marvell makes AI chips used in data centers.
Stock Market Today: Software Player Crashes
In stocks, Pure StoragePSTG crumbled by nearly 27% after releasing its fiscal third-quarter earnings report. Earnings of 58 cents per share reversed three quarters of declines and met views while sales came in at $964.5 million, exceeding analyst targets of $956 million.
But the company said it plans to reinvest revenue from sales to hyperscalers into research and development and sales and marketing, possibly leading to a dent on profit margins in 2027, Barron’s reported.
The software stock undercut its 50-day moving average in higher volume according to IBD MarketSurge chart analysis tools and triggered a sell signal on Wednesday.
Microsoft Sells Off
Dow Jones software giant Microsoft tumbled nearly 3% Wednesday, falling further below its 50-day moving average.
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Early Wednesday, The Information reported that Microsoft was lowering software sales quotas linked to artificial intelligence.
Dow Jones Movers: Amazon, Walmart
Inside the blue chip index, AmazonAMZN and SalesforceCRM rose modestly, up 0.2% and 0.6%, respectively.
On the downside, MicrosoftMSFT lost more than 1% while WalmartWMT edged lower. Walmart shares are in buying range above a 109.58 buy point.
Nvidia Extends Gains
NvidiaNVDA stock gained 1.3% premarket Wednesday, on pace to extend a winning streak to three sessions.
Shares are trying to regain their 50-day moving average, a key level to watch. A decisive retake would be bullish for the stock’s immediate prospects.
Stock Market Today: Surprise Jobs Data
Early Wednesday, ADP said private payrolls declined by 32,000 in November.
It was expected to show modest private payroll growth at 20,000, down from October’s 42,000.
Earnings Movers: American Eagle Soars
Big earnings movers Wednesday were American Eagle OutfittersAEO, CrowdStrikeCRWD, Dollar TreeDLTR, Macy’sM, Marvell TechnologyMRVL and OktaOKTA.
American Eagle shares leaped nearly 13% after the company reported strong quarterly earnings sales results. The firm said it earned 54 cents per share, up from 42 cents last year. Total revenue increased 6% to a record $1.36 billion. Meanwhile, FactSet analysts expected earnings of 44 cents per share on $1.32 billion in revenue.
Comparable sales rose 4%, compared with analyst views for 2.4% growth and also accelerating from a 1% decline in the second quarter and a 3% decline in the first quarter, respectively.
Elsewhere, CrowdStrike sold off 2%, as Dollar Tree shares rallied 1.8%. Macy’s stock tumbled 6%, while Marvell stock surged 10%. Finally, Okta shares tumbled 4% in premarket trading.
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Stock Market Today: ADP Jobs Report
Due at 8:15 a.m. ET, ADP’s employment report is expected to show modest job growth at 20,000 for private payrolls in November. That’s down from 42,000 in October.
Later in the week, the Labor Department’s weekly unemployment claims are due Thursday.
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Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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