The stock market today is currently experiencing some losses during late-afternoon trading, and the Dow Jones Industrial Average is leading the effort with a decrease of nearly 0.6% with only an hour left in the regular session. However, there is some good news for those interested in investing in database software firms. Despite a dour third-quarter sales outlook by Datadog (DDOG), the stock market is seeing a positive response from a couple of new IPOs.
First Watch Restaurant (FWRG), a breakfast and brunch specialty restaurant that is closed for dinner, is trading near break-even after posting gains in three out of the last four weeks. The Bradenton, Florida-based restaurant reported a growth of 160% in second-quarter earnings and a 17% increase in sales. Similarly, Gen Restaurant (GENK), which was started by two Korean immigrants in Los Angeles, is experiencing a 4% weekly gain. However, Gen Restaurant is currently trading near clear upside resistance at 20.
In contrast, both the Russell 2000 and the Nasdaq composite are seeing losses of 0.8% and nearly 1% respectively. The Invesco QQQ Trust (QQQ), which is tech-heavy, is also down 1.1%. However, the S&P 500 is able to trim its decline to around 0.5%.
Within the Dow Jones industrials, two components have managed to buck the decline and have even gained 1 point or more. Caterpillar (CAT) has rallied off morning lows and added 0.5%. The construction, mining, and oil and gas equipment titan has seen a profit of 17% since shares broke past a correct buy point in a cup with handle. Amgen (AMGN), the biotech giant, has also experienced a positive trend with shares rallying more than 2% and hitting a session high. Although the stock has had a poor performance so far in 2023, it has managed to surpass a key entry point in a base.
On another note, it is worth mentioning that the enterprise software industry group, which includes Datadog, has fallen by more than 3% and is now below its rising 50-day moving average. Nevertheless, the S&P 500 has begun to outperform with a 16.9% gain since the beginning of the year, and the Nasdaq composite is holding a solid 32.5% gain over the same time frame.
That’s the current situation in the stock market today. Remember to keep an eye on these developments and make any investment decisions based on a careful analysis of the market conditions and individual stock performance.
