Major stock indexes added to Wednesday’s bad vibes and are trading lower on Thursday afternoon, near lows for the day. The market is still reeling from comments by Fed Chairman Jerome Powell, which heightened fears of a recession.
The Nasdaq fell 1.5%. The S&P 500 lost 0.8%. The Dow Jones Industrial Average fell 0.4%. Small caps fared less well, with the Russell 2000 Index falling 2.4%.
The Dow Jones holds above the psychological 30,000 level, while the Nasdaq composite remains above the 11,000 level.
Stock market adds to losses in significant volume
Volume on the NYSE and Nasdaq was significantly higher compared to the same time on Wednesday.
The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, fell 1.4%. The yield on the 10-year US Treasury note rose to 3.68%.
In Europe, Germany’s DAX stock index fell 1.8%, Paris’ CAC 40 lost 1.9% and London’s FTSE 100 lost 1.1% to close the trading day.
Initial jobless claims for the week ended Sept. 17 came in at 213,000 versus the consensus of 220,000, up 5,000 from the revised number for the previous week.
Crude oil rose 0.6% to $83.41 a barrel. The SPDR Select Energy ETF (XLE) gained 0.6%.
Bitcoin fell 0.2% to $18,945.
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Stock market winners and losers: The drugmaker up, the data company down
drug giant Eli Lily (LLY) jumped 4.1% after UBS upgraded the stock to buy from breakeven, bringing the price target to $363. Mounjaro, the company’s type 2 diabetes and weight management drug, is attracting speculative interest.
LLY stock is in a flat base with a buy point of 335.43. It is ranked second in the Medical-Diversified group, which is 93rd out of the 197 IBD industries that follow. Lilly earned a solid relative strength rating of 89.
Lennar (LEN) rose 2.4% after reporting mixed results for the third quarter of fiscal 2022, beating on profits but missing on sales. The stock is trading below its 21-day exponential moving average on the MarketSmith chart.
oil transportation company Scorpion Tankers (STNG) gained 2.5% after announcing that the company had purchased its common stock on the open market. It will also exercise a call option on an oil tanker currently on lease.
The Scorpion has the best relative and composite strength ratings of 99. It ranks ninth in the Oil & Gas Transport-Pipeline group, which is ranked No. 3 elite in the IBD industry groups.
Financial data company FactSet Research Systems (FDS) fell 7% after beating sales, but reported a failure on its fourth-quarter 2022 EPS. The stock was punished heavily in the biggest decline since June 2020, when it fell 7%.
Dard Restaurants (DRI) plunged 4.7% after reporting a slump in Q1 2023 sales.
Costco to report earnings after market close
Costco (COST) is down 1.5% ahead of its fourth quarter 2002 earnings report, due after market close. The stock has lost around 7% since the start of September.
COST stock is expected to earn $4.17 per share in the fiscal fourth quarter, on sales of $72 billion. The company doesn’t provide advice, so investors will be looking for clues on how to set expectations for the holiday shopping season.
IBD 50 Stocks on the Move: Tanker Stocks Lead the Way
The Innovator IBD 50 ETF (FFTY) fell 2.8%, falling more than the major stock market indexes today.
Huntington Ingalls Industries (HII) grew 1.9% in volume on the delivery of three Underwater Vehicles (UUVs) to Britain’s Royal Navy.
humane (HUM) gained 1.8% after Morgan Stanley overweight the stock with a price target of $549. Morgan Stanley chief equity strategist Michael Wilson observed that managed care stocks could be a potential bright spot in the economy, and specifically mentioned Humana and UnitedHealth Group (UNH), up 0.9%.
Teekay Tankers (TNK) gained 1% and is trading at an extended level that it first reached on September 19. The stock has the best relative strength rating of 99.
Talos Energy (TALO) fell 5.6% after the company reached an agreement to acquire privately held EnVen Energy in a $1.1 billion cash and stock deal.
EnVen is an explorer, developer and producer of oil, gas and related hydrocarbons in the Gulf of Mexico.
Shock wave (SWAV) fell 9.3% after two of its executives reported insider stock sales.
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