Stocks Fade; This Dow Jones Stock Gets FDA Lift

Stocks launched into tightly mixed trade Wednesday – despite some positive earnings news and fresh developments in the US China trade – as a rising dollar and a payroll payrolls report held on investor optimism.

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Retailers were in action, as Abercrombie & Fitch (ANF), Ross Stores (ROST) and Dollar Tree (DLTR) rose on earnings news.

Chipmakers were mixed, as Ambarella (AMBA) hammered out a big early move on earnings results, but Micron Technology (MU) took a hard dive.

China-based stocks were also wildly mixed. IPOs Nine (NIO), Qutoutiao (QTT) traded down hard on earnings, while Baidu (BIDU) and Baozun (BZUN) jumped

RV maker Thor Industries (THO) swerved lower after its early earnings report. IBD 50 stock Willis Towers Watson (WLTW) pulled back sharply, while insurance-broker peer Aon (AON) rebounded after confirming it would not pursue a buyout of Willis.

The Dow Jones industrial shed its early gains and slipped into narrow offsets. The S&P 500 dipped 0.2% each. The Nasdaq held to a 0.1% decline

Johnson & Johnson (JNJ) rose 0.2%, on a rare depression drug approval, as Exxon Mobil (XOM) dragged the Dow Jones Industrial's lower, down more than 2% after updating its operating outlook.

Baidu and Dollar Tree jockeyed for the lead among Nasdaq 100 stocks. Aon ran at the head, Willis dropped to the bottom, of the S&P 500.

February Hiring Tops Expectations; Beige Book On Tap

The dollar swung into its sixth straight advance, keeping downward pressure on stocks. The Federal Reserve's latest Beige Book report is due at 2 pm ET.

U.S. Private sector employers added 183,000 workers in February, according to ADP's National Employment Report. That was down from 300,000 new hires in January, but just above economist projections for a gain of 180,000 new jobs. Service sector jobs were 139,000 or more, and mid-size businesses accounted for more than 50% of the hiring. The ADP report is a precursor to the Labor Department's February payrolls report, due out Friday.

The March IBD / TIPP Economic Optimism Index, released Tuesday, staged its largest one-month jump since 2012, up 5.4 points to 55.7. Optimism has skidded at a 16-month low in February

Dow Jones Stock: Johnson & Johnson Earns FDA Node

Johnson & Johnson edited the news late Tuesday had approved its nasal spray Spravato for use in treating certain types of depression. Spravato is seen as a fast-acting remedy for patients suffering from "treatment-resistant" depression. J&J estimates about 3 million to 5 million Americans could benefit from the treatment. The controversial drug was the FDA's first approval of a major depression treatment since Prozac, more than three decades earlier. The drug will be available only through restricted distribution channels, and must be administered in a clinic or physician's office. Johnson & Johnson is stocking up 14% since late December, and is above the midpoint in a three-month long, 19% deep consolidation.

Exxon dived more than 2%, after updating its growth plans at its annual investors day. The energy giant said it would increase capital spending 7% this year, to $ 30 trillion, then to $ 35 billion per year through 2025. .

Stocks: Ambarella Exits Buy Range

Fabulous chip developer Ambarella rallied more than 4% higher, after fourth quarter earnings and revenue fell less than expected. Gross margins contracted sharply and management's first-quarter revenue guidance was below analyst views. The gain of the chips for low-power, high-resolution camera systems above the top of a buy range, above a cup-with-handle buy point at 38.83.

China Trade Talks: Markets Gain On Concessions [19659011] News reports said President Donald Trump began to push more aggressively for a deal in the US-China trade talks. Trump has carefully monitored market reactions to China trade news, according to Bloomberg, and has grown concerned that a delayed agreement could affect market progress.

In China, the South China Morning Post reported that China would make forced technology transfers illegal, move that would ease barriers to investment in China's economy and key concession sought at US trade negotiators

China markets gained, with a fourth straight big gain at the Shanghai Composite. China-focused ETFs were mixed, with the Xtrackers Harvest CSI 500 China-A Shares Small Cap Fund (ASHS) jumping 1.8% and the Direxion Daily CSI 300 China A Share Bull 2X fund (CHAU) moving 0.5% higher. India's Sensex benchmark on the Bombay Stock Exchange gained 0.5% Wednesday. The Direxion Daily MSCI India Bull 3X (INDL) rose 1% in premarket action after posting a 9.2% advance on Tuesday.

In Japan, Tokyo's Nikkei 225 closed 0.6% lower.

Retail Stocks: Abercrombie, Dollar Tree , Ross Stores Surge

Abercrombie & Fitch surged 18% and Dollar Tree lodged at 3% advance. Abercrombie's fourth-quarter earnings and revenue fell less than expected. Dollar Tree earnings rose while revenue slipped, but both topped analyst targets. Both stocks are in long-term consolidations.

Ross Stores reversed a premarket decline and rose nearly 2% at the open. The discount retailer reported earnings in line with analyst views, and revenue slightly above estimates. But first-quarter and full-year earnings guidance was well below forecasts. Shares remain in a buy range above a 93.46 cup-with-handle buy point through 98.13.

Final Brexit Vote Approaches

Europe's market was mixed as negotiators between the U.K. and the European Union is able to reach common ground on a post-EU trade plan for Britain. Prime Minister Theresa also does not appear to have enough votes in Parliament to push through her current offering, which is due for a final vote next Tuesday. Automakers Ford (F), Toyota (TM) and BMW have all signaled plans to shut down U.K.-based production in the event of a no-deal Brexit. Bank Of England Governor Mark Carney said Tuesday that some constructive developments in the U.K. London's FTSE 100 was up 0.2%, Frankfurt's DAX traded 0.2% lower, in afternoon action.

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