Pay attention to market internals, says Wolfe Research

A look under the hood at stocks continues to build on the bearish fall, according to Wolfe Research.

“While the S&P and Russell 2000 peers closed right on crucial support, transportation hasn’t been as fortunate, as downside momentum accelerates…not exactly what equity or financial bulls want to see,” Rob Ginsberg wrote on Tuesday.

—Sarah Min

Expect more tight trading next week, JPMorgan says

Traders at JPMorgan expect the market to remain in a tight trading range as lawmakers try to reach an agreement on the US debt ceiling.

“While McCarthy said a deal is possible by the end of this week, the timeline could be late next week before Memorial Day,” JPMorgan traders wrote. “With that in mind, stocks could trade in a tight range until an outcome is observed with the biggest downside risk if we go into the Memorial Day weekend without a resolution, given the x-date in early June.”

“When considering actionable trades, many clients continue to see MegaCap Tech as the best area to be long, followed by Defensives. That said, several conversations have revealed a desire to be neutral into x-date given the potential for markets to swing in either direction after seeing a result,” they added.

—Michael Bloom, Fred Imbert

Target shares fall after weak revenue growth

Goal traded more than 2% lower in the premarket after the retailer reported total revenue of $25.32 billion for the first quarter, which represented a growth of just 1% compared to the previous year. To be sure, that revenue figure, along with the company’s earnings per share, beat analysts’ expectations.

Stock chart iconStock chart icon

hide content

TGT drops

— Melissa Repko, Fred Imbert

European markets open lower Wednesday

European markets opened lower Wednesday as investors keep an eye on sovereign debt ceiling negotiations.

The pan-European Stoxx 600 index was down 0.2% at the start of the session, with most sectors and major exchanges trading in negative territory. Financial services made the biggest losses, down 1.3%, followed by autos, which fell 0.9%. Healthcare bucked the trend modestly with a 0.1% gain.

—Hannah Ward-Glenton

Chinese yuan surpasses 7 mark as economic data misses

The offshore Chinese yuan weakened further to 7.0061 against the dollar, breaching the 7 line for the first time in 2023 on Wednesday morning.

The onshore yuan also weakened 0.18% to 6.9913 against the US dollar as investors further digested China’s economic data that missed estimates on Tuesday.

Home prices in China fell, with prices down 0.2% year-on-year, compared with a 0.8% decline in the previous month, according to Reuters estimates.

Stock chart iconStock chart icon

hide content

Singapore non-oil domestic exports post surprising monthly increase in April, total trade

Singapore’s domestic exports outside of oil in April grew 2.7% from the previous month, a surprising upside from the 3% decline that economists polled by Reuters had expected.

On an annual basis, however, domestic non-oil exports fell 9.8%, more than economists’ expectations of 9.4%.

This was mainly due to a decline in exports to China, Taiwan and Malaysia, although exports to the US, EU and South Korea increased.

Singapore’s total trade fell to SG$100.3 billion in April, down 18.8% year-on-year and extending March’s 8.6% decline.

Compared to April 2022, total exports decreased by 18.1% and total imports decreased by 19.5%.

— Lim Hui Jie

Four meetings in Sydney canceled as Biden shortens trip

Western Alliance shares rise in after-market trading

Shares of the western alliance jumped about 7% in extended trading after the bank said its deposit growth for the current quarter topped $2 billion on May 12.

The new data was contained in an investor update filed with Securities and Exchange Commission on Tuesday.

That’s up from $1.8 billion in deposit growth for the quarter May 9.

Western Alliance shares have been on an upswing lately, up 17% in the past week — and up 15% since the start of this week. However, the stock is still down nearly 47% for the year.

Darla Mercado, Ethan Kraft

Keysight rises with stronger than expected results

Tech warehouse Keysight rose more than 7% after hours on the back of a strong quarterly report and guidance for the current quarter.

In the second fiscal year, the company reported $2.12 in earnings per share excluding items and $1.39 billion in revenue. By comparison, analysts polled by FactSet expected $1.96 per share and revenue to come in slightly lower at $1.38 billion.

For the current quarter, the company said it expects between $2 and $2.06 in earnings per share for the current quarter, while analysts forecast $1.96. Keysight guided revenue for the quarter to come in between $1.37 billion and $1.39 billion, a range that includes the Wall Street consensus estimate of $1.38 billion.

– Alex Harring

Dow closes below 50-day moving average for first time since March 30

The Dow ended the trading session on an important threshold on Tuesday.

The 30-share index fell 336.46 points, or 1.01%, to close at 33,012.14. It closed below its 50-day moving average of 33,143.18, but it has slipped below that threshold on an intraday basis.

The 50-day moving average is a short-term technical indicator of where an asset or index is trading. A close below that level could signal a potential change to the downside.

Darla Mercado, Gina Francolla

Doximity falls in after-hours trading after giving weak expectations for the current quarter

Medical software stock Doximity fell more than 8% in extended trade after issuing weak guidance for the current quarter.

The company said it expects between $106.5 million and $107.5 million in revenue and between $39 million and $40 million in adjusted EBITDA for the fiscal first quarter. Both of those estimates were below consensus expectations, with analysts polled by FactSet expecting revenue of $11.8 million and adjusted EBITDA of $45.4 million.

It overshadowed the results from the fourth fiscal quarter. The company reported 20 cents in earnings per share excluding items, above the 17 cents analysts expected. Revenue also beat expectations at $111 million compared to a forecast of $110.1 million. Adjusted EBITDA came in at $48.9 million, ahead of the consensus estimate of $45.7.

For the full fiscal year, the company said it expects between $500 million and $506 million in revenue, a range that includes Wall Street’s estimate of $501.8 million. The company expects adjusted EBITDA for the year to be between $216 million and $222 million, while analysts expect $215.7 million.

– Alex Harring

Stock futures change little

Stock futures rose modestly just after 6:00 PM ET.

Futures tied to the Dow, S&P 500 and Nasdaq 100 all rose about 0.1%.

– Alex Harring