Stock Market Fluctuated on Wednesday after a Recent Rebound

Stocks struggled on Wednesday as investors contemplated whether U.S. lawmakers would manage to pass a new stimulus package this week.

The S&P 500 futures and Nasdaq composite gained while the Dow Jones tumbled down. Netflix (NFLX) stock also plummeted down by more than 5%, after the company’s growth decelerated further following a strong increase in sign-ups earlier on during the Covid-19 pandemic.

On Tuesday, the stock market’s recent rebound faded slightly as major indexes edged up by nearly 1%. Encouraging news on a Covid-19 stimulus bill helped the market rise.

As a result, the Nasdaq composite jumped by 0.9%, while the S&P 500 gained almost 1% and the Dow Jones Industrial Average surged forward by 0.8%. All three indexes recovered from pullbacks to their 21-day exponential moving average. However, the Nasdaq remained below the Oct. 12 low.

The market picked up good vibes from Washington after House Speaker Nancy Pelosi said she was optimistic about a deal on coronavirus economic relief.

Banking, building, and transportation industry groups gained more than 2% on the day, along with many other stocks. All S&P sectors rallied, with transportation leading the way. Furthermore, the Dow Jones transports jumped by 1.7% to a new high. IBD’s airline group also soared by 2.6%, airfreight gaining 2.4% and shipping adding 2%.

The Technology Select Sector SPDR ETF is still on the top with a profit of more than 30% this year. It climbed up about 1% on Tuesday afternoon, in the middle of the sector performance. Meanwhile, one of the largest tech stocks, Alphabet, rebounded, trading 2% higher after news of an antitrust lawsuit sent its shares lower by more than 2% from the first hour high.

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What about other stocks?

Innovator IBD 50 ETF (FFTY) edged up by 0.4% as it tried to break a four-day losing streak. On the other hand, Horizon Therapeutics (HZNP) tumbled down by 4.5%. That loss took the biotech below its 50-day moving average. Thus far, the stock has not triggered a sell signal, but the break of the 50-day line is dangerous.

Corsair Gaming (CRSR) shares skyrocketed by 17%, clearing the 22.60 buy point. Midcap biotech Halozyme Therapeutics (HALO) also cleared the 29.87 buy point in big volume, more than five times normal, after breaking out of a cup base.

Furthermore, homebuilders surged broadly. NVR (NVR) gained 4% after the Virginia-based builder surpassed earnings expectations.

U.S. housing starts jumped by 1.9% in September to 1.415 million units annualized. Even though that missed views, Jennifer Lee, BMO Capital Markets economist, saw some positive elements in the report. The important single-family component rallied by 8.5% to a 13-year high.