The Dow Jones Industrial Average (DJINDICES:^DJI) has shed more than 45 points as of 11:30 a.m. EST. Dow component Microsoft (NASDAQ:MSFT) was notably outperforming its index, while other tech stocks Zillow (NASDAQ:ZG) and OmniVision (NASDAQ: OVTI) also enjoyed outsized gains.
Dow Jones snaps winning streak
The Dow snapped its recent winning streak in early trading Wednesday, pulling back slightly after surging higher on Tuesday. To a large extent, the move lower may have simply been a random pullback following a tremendous run, but some economic news may have affected the market.
St. Louis Federal Reserve Bank President and CEO James Bullard this morning said that despite the recent crop of weak economic reports, he remained undeterred in his optimistic view of the U.S. economy. While that seems positive, some investors might have interpreted his remarks as a suggestion that the Federal Reserve could continue to reduce its stimulative measures.
Zillow rises ahead of earnings
Zillow shares rose nearly 4% on Wednesday ahead of the online real estate website's earnings report this afternoon. Based on the stock's move to the upside, investors are obviously hopeful that Zillow will exceed expectations.
Zillow has been a volatile stock and continues to trade at an aggressive valuation (its current forward price-to-earnings ratio is just short of 200). No matter what Zillow reports this afternoon, the stock could experience a wild swing.
OmniVision bounces back
OmniVision shares were also rising on Wednesday, although with no earnings on tap or much company news. The 2.8% move higher may be simply bounce from yesterday's steep sell-off.
OmniVision shares tumbled on Tuesday following reports that the company would not supply camera technology for the next iPhone. Investors may have been discounting that rumor, as there wasn't any official confirmation.
Microsoft outperforms the Dow Jones
There wasn't any big report to explain Microsoft's rally, suggesting that the 0.7% gain may have simply been a random move.
Microsoft denied a report that it was preventing Chinese websites from appearing in Bing search results outside of China, but that doesn't seem significant enough to affect the stock.