Dow Jones Falls; Donald Trump Stocks Up After Delay; Coinbase Earnings Miss, Bitcoin Rises

The Dow Jones Industrial Average fell as the stock market nursed a hangover from the Fed meeting. Donald Trump SPAC Digital World Acquisition (DWAC) rose after a key vote was delayed. Bitcoin rose while Coin base (COIN) delivered disappointing earnings. Robin Hood (HOOD) increased on the results.

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Meanwhile, a couple of notable stocks made bullish moves. Leaderboard stock Cheniere energy (LNG) tried to hold in a buying zone while Delete GP (PAGP) tested a buy point.

Volume was down on both Nasdaq and the New York Stock Exchange, according to early data.

The interest rate on the benchmark index for 10-year government bonds rose 9 basis points to 4.15%. West Texas Intermediate crude fell 2.2% in trading to around $88 a barrel.

Nasdaq Ties, IBD 50 Excels

The Nasdaq fared the worst of the major indexes, falling 1.7%. Cognizant Technology Solutions ( CTSH ) lagged after it fell 13.8% after it reported weak earnings in the latest quarter.

The S&P 500 also struggled, falling 1.1%. Insurance game Lincoln National ( LNC ) struggled here, plunging 33.1% on a third-quarter loss.

The S&P 500 sectors were mixed, with energy and industrials performing best. Technology and discretionary consumers had the toughest time.

Small caps fared better, with the Russell 2000 down 0.3%.

The Innovator IBD 50 ETF ( FFTY ), a watch for growth stocks, outperformed as it rose 0.4%.

Dow Jones Today: Apple Stock Lags

The Dow Jones Industrial Average reversed late as a weak rally attempt fell short. It fell 0.5%, or around 150 points.

Wall Street darling apple ( AAPL ) was the worst performer as it fell 4.2%. The stock has weakened after a post-earnings rally.

It is now about 7% below its 50-day moving average, according to MarketSmith analysis.

On the upside, Boeing (BA) shone brightest. The aviation giant received 6.3%. The company revealed on Wednesday that it plans to increase production of new aircraft. It also expects free cash flow of $3 billion to $5 billion in 2023.

Donald Trump stocks up after poll delay

Digital World Acquisition was 0.7% higher after a key vote was delayed. The fate of Digital World Acquisition, the Trump-linked special purpose vehicle acquisition company (or SPAC), remains up in the air.

The firm, which is trying to take the former president’s Trump Media and Technology Group public, once again added a key voice. The shareholder vote to approve a deadline extension to complete the merger has been postponed until 22 November.

After initially failing to hold the vote in September, the SPAC’s sponsor, ARC Global Investments, contributed about $2.9 million to extend the merger deadline until Dec. 8, according to federal filings.

The vote arranged by DWAC management gives shareholders an opportunity to extend the deadline to September 8, 2023.

The Trump Media and Technology Group’s main product at the moment is the conservative social media site Truth Social, a right-leaning alternative to Twitter.

DWAC stock was slightly positive in afternoon trade, but is still down nearly 69% for the year. Donald Trump stock is in the bottom 4% of stocks in terms of stock market performance over the past 12 months.

Coinbase stock fell ahead of earnings, even as Bitcoin edged higher. It closed down 8.1 percent. The volume was just above average.

After the close, the stock initially fell before rebounding after missing some earnings shows. EPS came in at $2.43 on revenue of $654 million.

Transaction revenue of $366 million was also lower than expected.

“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” the firm said in a letter to investors. “While the macro headwinds are beyond our control, we continue to focus on factors within our control: narrowing our product focus to deliver great customer experiences and reduce our operating costs.”

One bright spot was the fact that it reported 8.5 million monthly transaction users. Although this was lower than the previous quarter’s 9 million, it was above analysts’ expectations.

COIN stock is now trading below all major moving averages. Shares are down almost 77% since the start of the year.

Bitcoin continues to struggle in a tough environment for risky assets. It was trading just above the $20,000 mark after a fractional gain for the day.

Other cryptocurrency plays were mixed. Grayscale Bitcoin Trust (GBTC) rose 0.3% as Bitcoin mining plays Riot Blockchain (RIOT) plunged 6.1%.

Meanwhile, Robinhood stock rose 8.2% on earnings. It benefited from a double shock, posting a smaller-than-expected quarterly loss while revenue topped Wall Street projections. The trading platform company remains down more than 33% so far in 2022.

Leaderboard Games fade late

Leaderboard stock Cheniere Energy showed strength by fighting back above a buy point after falling on earnings. It ended the day 0.9% lower on late pressure.

LNG fell first after a bad earnings miss. It is now just below a 178.72 entry.

Cheniere reported a net loss of $9.54 per share, missing analyst views for EPS of $5.72. It was also wider than the previous year’s loss of $4.27 per share. Revenue rose 175% to $8.85 billion, up from $3.2 billion a year earlier. This was better than expected.

Cheniere reaffirmed its full-year guidance, expecting adjusted EBITDA of $11 billion to $11.5 billion. The company also projects distributable cash flow of $8.1 billion to $8.6 billion in 2022.

Meanwhile, Plains GP topped a cup-base entry of 13.12. It was higher in volume than average after earnings. The oil pipeline company had EPS of 36 cents, much better than the previous year’s loss of 12 cents per share. Turnover also rose by 33%.

The earnings result is still not ideal, with an EPS rating of 45 out of 99.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.

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