Wall Street rally pauses as big tech loses steam

The S&P 500 and the Nasdaq drifted slightly lower in a choppy session Wednesday. Materials and energy shares lifted the Dow, while a big slide in Tesla and declines in Amazon and Apple pulled the Nasdaq down.

Just as on Tuesday, the indexes made minor moves. The Dow rose one fifth percent but the S&P 500 finished flat, and the Nasdaq edged down a quarter percent.

Gerber Kawasaki CEO Ross Gerber said the markets need a new shot of adrenaline.

“If you look at today’s trading, I wouldn’t make much out of it. The markets have moved up a lot. There’s some dissonance here with the data between what’s happening with earnings and what’s happening in Congress, and so, we need a new catalyst to move higher.”

Cannabis stocks rose after posts touting pot stocks as the next GameStop spread throughout the WallStreetBets forum on Reddit. Tilray skyrocketed more than 50%. Aurora Cannabis jumped 21%.

Shares of Lyft got a lift. The ride-sharing company says more cost cuts and a rebound in demand in the second quarter should help it knock out a profit by the third quarter of this year.

Investors heard from its arch rival, Uber, after the bell. Quarterly revenue at its ride-hail and delivery business rose. The company said it’s on track to produce an adjusted profit by year-end. But shares fell.

Video Transcript

[RINGING BELL]

FRED KATAYAMA: The S&P 500 and the NASDAQ drifted slightly lower in a choppy session Wednesday. Materials and energy shares lifted the Dow, while a big slide in Tesla and declines in Amazon and Apple pulled the NASDAQ down. Just as on Tuesday, the indexes made minor moves. The Dow rose 1/5%, but the S&P 500 finished flat, and the NASDAQ edged down a quarter percent. Gerber Kawasaki CEO, Ross Gerber, said the markets need a new shot of adrenaline.

ROSS GERBER: If you look at today's trading, I wouldn't take much out of it as that the market's moved up a lot. There's some dissonance here with the data between what's happening with earnings and what's happening in Congress. And so we need a new catalyst to move higher.

FRED KATAYAMA: Cannabis stocks rose after posts touting pot stocks as the next GameStop spread throughout the Wall Street Bets forum on Reddit. Tilray skyrocketed more than 50%. Aurora Cannabis jumped 21%. Shares of Lyft got a lift. The ride sharing company says more cost cuts and a rebound in demand in the second quarter should help it knock out a profit by the third quarter of this year. Investors heard from its arch rival, Uber, after the bell. Quarterly revenue at its ride hail and delivery businesses rose. The company said it's on track to produce an adjusted profit by year end. But shares fell.