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Dow, S&P 500 Turn Red At Close; Apple Grinds Lower; Oil, Chip Names Dive | Stock News & Stock Market Analysis

Stocks reversed lower at Wednesday’s close, as chip stocks and oil-related names suffered heavy losses, while a cross section of blue chips and others took home powerful gains.

X The Nasdaq composite dropped 0.9%, with chipmakers posting the five worst losses on the Nasdaq 100. The S&P 500 ended 0.5% lower, and the Dow Jones industrial average gave up thin gains in the last several minutes of trade to close with a fractional decline.

Markets in Europe maintained powerful gains through their close on Wednesday, echoing Tuesday’s rebound on U.S. markets. London’s FTSE 100 bounced 1.9% and Frankfurt’s DAX jumped 1.8%, while the CAC-40 in Paris climbed 1.6%. Benchmarks in Italy and Austria climbed highest, up 2.8% and 2.9%, respectively.

Hasbro, Boeing, Nvidia Winners; Chipotle, Apple, Microchip Dive

In the U.S., earnings news took over from the larger economic factors driving trade earlier in the week. An 8% advance by Hasbro (HAS) after its fourth-quarter report lifted the toys, games and hobby group to the day’s best move among the 197 industry groups tracked by IBD. Mobile and manufactured homebuilders posted the second largest advance, driven by Cavco Industries (CVCO). The thinly traded stock bolted 14% higher on the company’s fiscal third-quarter results.

On the downside, chipmakers and oil-related groups took nine of the 10 Wednesday’s worst losses among industries.  Among chipmakers Philadelphia Semiconductor Index, Microchip Technologies (MCHP) caved 10% in massive trade.  Among energy names, Marathon Oil (MRO) and Range Resources (RRC) each dumped about 5% of their market value, as oil prices faltered more than 2% during the session.

Apple (AAPL) asserted a heavy influence, dropping 2.1% after being initiated at neutral by Goldman Sachs. The stock is setting up shop along its 200-day moving average, above which it recovered in powerful trade on Tuesday.

The FANG stock tech leaders kept the market’s feet to the fire throughout the day, as Facebook (FB), Amazon.com (AMZN) and Alphabet (GOOGL) all posted losses of 2% or more. Alphabet closed down 2.7%, marking the stock’s third finish below its 50-day moving average.

Boeing (BA) led the Dow industrials, rising more than 2% as the stock continues to rise from the 10-week moving average. Microsoft (MSFT) ended down 1.9% and is also bouncing from the 10-week line. The market’s current status and volatility mark unfavorable conditions for buying.

Ireland-based insurance giant XL Group (XL) rumbled 12.5% higher to take the best gain among S&P 500 stocks, followed by Hasbro. Chipotle Mexican Grill (CMG) owned the index’s worst loss, down nearly 11%.

Wynn Reports (WYNN) spiked nearly 9% on news that Founder, Chairman and Chief Executive Steve Wynn would exit his post at both Wynn Resorts and the China-based Wynn Macau unit on the heels of sexual misconduct allegations.  JPMorgan upgraded the stock to overweight from neutral. Roth Capital cut the stock to neutral from buy.

Almost half of the IBD 50 stock moved higher during the session. Arista Networks (ANET) and Abiomed (ABMD) led, up about 3% each. Nvidia (NVDA) gained more than 1%, returning to the top of its buy zone above a 218.77 flat base buy point.

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