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Dow Leads, But Tech Stocks Fall; Wall St. Bank To Regain Key Level

The stock market showed mixed action early Wednesday, as the Dow Jones industrial average's gains were offset by losses in the technology sector. Investment bank Morgan Stanley (MS) jumped 3% after its Q2 earnings results, with bank stocks looking to continue their recent rebounds. IBD 50 stock Twitter (TWTR) faltered 3% on an analyst downgrade. (For updates on this story and other market coverage, visit the Stock Market Today.)

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The tech-heavy Nasdaq fell 0.3%, as it eased from record highs. The S&P 500 was at its breakeven mark, while the Dow Jones industrial average traded 0.1% higher.

Among companies reporting earnings, Morgan Stanley rose over 3% and attempted to recover its 50-day line after the investment bank surpassed the Street's earnings targets early Wednesday. The better-than-expected earnings come on the heels of mostly positive results among Wall Street's banks, and stock prices have rebounded accordingly.

Yet, amid multimonth pullbacks, the banking giants are currently in no position for potential purchases. The top ranked stock in the industry — Bank of America (BAC), with a 67 out of a highest-possible 99 IBD Composite Rating — is still about 10% off its old 33.05 price high.

Brokerage firm Interactive Brokers (IBKR) reported strong quarterly results late Tuesday, but the stock fell over 1%. Rival Charles Schwab (SCHW) advanced 4% Tuesday on stronger-than-expected results. Schwab is attempting to shape the right side of a new base, but is still under its 50-day line. Shares rose almost 1% Wednesday.

Elsewhere in the retail brokerage industry, IBD 50 stock E-Trade Financial (ETFC) will report after the market close Thursday. The stock is building a flat base with a potential 66.56 buy point. Shares moved up 2%.

Inside The IBD 50

Among the top growth stocks, Twitter stumbled over 3% after Macquarie downgraded the internet stock from outperform to neutral. Shares are trading about 10% off their 52-week high  but still nearly 29% above a 33.88 cup-with-handle entry.

On the upside, Micron Technology (MU) advanced for a second straight day with a gain of more than 1%. The stock reclaimed its 50-day line Tuesday and is moving up the right side of a new base formation.

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