The major stock indexes held narrow gains in today’s stock market, as investors awaited the Federal Reserve’s interest rate decision at 2 p.m. ET. Blue-chip stock Nike (NKE) downshifted after its fiscal-Q1 earnings results. Meanwhile, top growth stock Nvidia (NVDA) is attempting to regain a buy point. (For updates on this story and other market coverage, visit the Stock Market Today.)
The major stock indexes — the tech-heavy Nasdaq, S&P 500 and Dow Jones industrial average — traded less than 0.1% higher in morning trade. The Dow and S&P 500 are trading just off their record highs. The Federal Reserve is widely expected to raise interest rates by a quarter point, upping the target rate to 2% to 2.25%.
Earnings: Nike Sells Off
Among companies reporting earnings, Dow stock Nike reported strong fiscal-Q1 results after the stock market close Tuesday, but higher product costs weighed on gross margins. The stock declined nearly 3%, but is holding above its 81.10 flat-base entry and 50-day line.
Fellow Dow name IBM (IBM) gained 2% after UBS upgraded the stock from neutral to buy with a 180 price target. The stock is trying to reclaim its long-term 200-day moving average line.
Nvidia Looks To Regain Entry
Graphics-chip maker Nvidia turned lower after attempting to regain a 269.30 flat-base buy point early Wednesday. The stock found support at its 50-day line Monday.
Tuesday’s breakout stock SAP (SAP) fell 0.3% but remains in the 5% buy range of a cup with handle’s 122.61 entry, according to MarketSmith chart analysis. Look for the stock’s relative strength line to continue to strengthen; it did not hit a new high on the breakout — a potential flaw.
IBD 50 Stocks: Netflix Leads
On the downside, Paycom Software (PAYC) declined nearly 3%, on pace to snap a three-day win streak. The top software name is beyond the 20%-25% profit-taking range above a 115.64 double-bottom entry.