The major stock market indexes added to Wednesday’s bad vibes and are trading lower on Thursday afternoon, close to lows for the day. The market is still reeling from Fed Chair Jerome Powell’s comments, which have intensified fears of a recession.
The Nasdaq fell 1.5%. The S&P 500 lost 0.8%. The Dow Jones Industrial Average dropped 0.4%. Small caps fared worse, with the Russell 2000 index sinking 2.4%.
The Dow Jones is holding above the psychological 30,000 level, while the Nasdaq composite remains above the 11,000 level.
Stock Market Adds To Losses In Heavy Volume
Volume on the NYSE and the Nasdaq was sharply higher vs. the same time on Wednesday.
The Nasdaq 100-tracking Invesco QQQ Trust (QQQ) retreated 1.4%. The yield on the 10-year U.S. Treasury note rose to 3.68%.
In Europe, the German DAX stock index dropped 1.8%, Paris CAC 40 lost 1.9%, and London FTSE shed 100 1.1% to close out the trading day.
Initial jobless claims for the week ended Sept. 17 came in at 213,000 vs. the 220,000 consensus, up 5,000 from the prior week’s revised number.
Crude oil ticked up 0.6% to $83.41 per barrel. The SPDR Select Energy ETF (XLE) gained 0.6%.
Bitcoin dipped 0.2% to $18,945.
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Stock Market Gainers And Losers: Drugmaker Up, Data Company Drops
Drug giant Eli Lilly (LLY) popped 4.1% after UBS upgraded the stock to buy from neutral, raising the price target to $363. Mounjaro, the company’s Type 2 diabetes and weight-management drug, is driving 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 industries IBD that tracks. Lilly has earned a solid 89 Relative Strength Rating.
Lennar (LEN) rose 2.4% after reporting mixed fiscal Q3 2022 results, beating on earnings but missing on sales. The stock is trading below its 21-day exponential moving average on the MarketSmith chart.
Oil transport company Scorpio Tankers (STNG) gained 2.5% on news the company purchased its common shares in the open market. It will also exercise a purchase option for a tanker that is currently being leased.
Scorpio has best-possible 99 Relative Strength and Composite ratings. It holds the ninth spot in the Oil & Gas Transport-Pipeline group, which is ranked an elite No. 3 in IBD industry groups.
Financial data company FactSet Research Systems (FDS) plummeted 7% after beating on sales but reporting a miss on its fiscal Q4 2022 EPS. The stock has been heavily punished in the biggest down day since June 2020, when it fell 7%.
Darden Restaurants (DRI) plunged 4.7% after reporting a miss on fiscal Q1 2023 sales.
Costco To Report Earnings After Market Close
Costco (COST) is down 1.5% ahead of its fiscal Q4 2002 earnings report, due out after market close. The stock has shed around 7% since the start of September.
COST stock is forecast to earn $4.17 per share in the fiscal fourth quarter, on sales of $72 billion. The company doesn’t provide guidance, so investors will be looking for clues on how to set expectations for the holiday shopping season.
IBD 50 Stocks On The Move: Oil Tanker Stock Leads The Way
The Innovator IBD 50 ETF (FFTY) sank 2.8%, breaking down more than the major indexes in today’s stock market.
Huntington Ingalls Industries (HII) rose 1.9% in heavy volume on the delivery of three underwater vehicles (UUVs) to the U.K.’s Royal Navy.
Humana (HUM) gained 1.8% after Morgan Stanley upgraded the stock to overweight with a $549 price target. 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), which is up 0.9%.
Talos Energy (TALO) dipped 5.6% after the company entered into 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.
Shockwave (SWAV) tumbled 9.3% after two of its executives reported insider stock sales.
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