It was a rinse-and-repeat day for the main indexes, which failed to make any big moves following their recent run higher. And once again, a light economic calendar had market participants skimming through single-stock news for possible catalysts.
On the earnings front, ride-hailing firms Uber Technologies (UBER) and Lyft (LYFT) were in focus following their respective first-quarter results.
UBER shares tumbled 5.7% after the company reported an unexpected loss and bookings miss. LYFT, on the other hand, surged 7.1% after its higher-than-anticipated results.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Reddit's revenue soars in Q1 results
Reddit (RDDT) was another notable post-earnings mover in the company's first quarterly event since going public in mid-March.
The social media platform said Q1 revenue surged 48% year-over-year to $243 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) swung to positive $10 million from negative $50.2 million in the year-ago period. The company also disclosed daily active uniques of 82.7 million, a 37% increase over the year-ago period.
Reddit stock was up as much as 16% in Tuesday's after-hours session and finished Wednesday with a 3.9% gain.
Tesla erases $10 billion in market cap on DOJ news
In non-earnings news, Tesla (TSLA) was the worst Magnificent 7 stock today, tumbling 1.8% and erasing $10 billion in market value along the way. Weighing on shares was a Reuters report that indicates the Department of Justice is investigating the electric vehicle maker for potential securities or wire fraud related to its autopilot self-driving system.
Tesla has been put through the wringer this year, but Argus Research analyst Bill Selesky says recent price weakness represents a buying opportunity.
"Despite several (industry and operational) near-term major challenges, we expect Tesla to navigate through these issues and continue as the market leader in EVs, despite increased competition from Chinese original equipment manufacturers (OEMs)," the analyst notes.
The company is also positioned to benefit from the EV tax credits included in the Inflation Reduction Act, "as well as from increased semiconductor supplies and moderating raw-material cost inflation," Selesky says.
Choppy price action could continue
As for the main indexes, the Dow Jones Industrial Average rose 0.4% to 39,056 – its sixth straight daily win, the longest such streak of the year. The S&P 500 (-0.03 point at 5,187) and the Nasdaq Composite (-0.2% at 16,302) closed marginally lower.
The modest price action follows a strong start to May for the main indexes, which are up between 3% and 4% for the month-to-date.
"The recovery rally appears to be in consolidation mode as earnings season tapers off," says Louis Navellier, chairman and founder of Navellier & Associates. "We may spend the next few days with sideway indexes and all the volatility under the hood in individual names as earnings continue to come in rapidly."
Related content
- Kiplinger's Earnings Calendar for This Week
- When Is the Next Fed Meeting?
- If You'd Put $1,000 Into Apple Stock 20 Years Ago, Here's What You'd Have Today
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
QUIZ: Test Your Retirement IQQuiz Are you smarter than…everyone else? Test your retirement smarts with this quiz.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You WishYour will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) ContributionsMissing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts SayRate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out OnMost large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's GuideStock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible HeirA spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
