Major indexes fell to session lows at the market close today. The Dow Jones Industrial Average sold off 1.7%, at levels last seen in November 2020.
The S&P 500 pared some of the morning's 0.5% loss but lost ground again to close 1.5% lower. The Nasdaq was higher for a while but reversed lower 1.5%. The Russell 2000, which posted a gain during the day, closed 0.6% lower.
Volume on the NYSE and on the Nasdaq was lower, according to early figures.
Crude oil fell nearly 2% to $79.64 a barrel.
The yield on the benchmark 10-year Treasury rose 6 basis points to 3.80%.
Personal consumption rose 0.4% in August after a 0.1% decline in July. However, according to Peter Essele, head of portfolio management at Commonwealth Financial, an inventory buildup in durable goods will likely affect big retailers.
Health Care Stocks Perk Up
There has been a flurry of good news for Akero Therapeutics, which rallied 14% today. Shares more than doubled on Sept. 13 after a study showed that its drug improved liver fibrosis. The California-based biotechnology company closed an 8.8-million-share public offering of common stock at $26 a share on Sept. 19.
Intercept Pharmaceuticals gapped down 15% after its clinical trial failed to meet a key parameter. Dow Jones health care leaders UnitedHealth, Johnson & Johnson and Merck are below their 50 day lines.
IBD 50 Stocks Moving Today
Among IBD 50 stocks, the 50-day line remains a key level on watch. Solar company Enphase has fallen below its 50-day line. Vertex Pharmaceuticals is in a flat base with a buy point of 306.05 and is above its 50-day line.
Stride is in a cup base with a buy point of 45.03, also above the 50-day line. Home materials maker PGT Innovations is up sharply and is approaching a buy point of 23.46. Its relative strength line is at a 52-week high. It is testing its 50-day line.
Dow Jones leader and Warren Buffett's top holding Apple has fallen sharply below its 50 day line. Occidental Petroleum, another Buffett stock, and Super Micro Computer have done a round trip after breaking out, which is a sell sign. These stocks are on watch for new bases.
Devon Energy is rising after forming a very deep handle in a cup with a buy point of 75.37. Shares are below their 50-day line.
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Dow Jones Stock Moves After Earnings
Nike's earnings declined 20% to 93 cents a share but beat estimates by a penny. Revenue of $12.69 billion was up 4% on a currency-adjusted basis. But the athletic apparel leader lowered its outlook due to its high inventory and a challenging forex environment for its overseas operations. Shares of the Dow component gapped down nearly 13%.
Micron failed to meet lowered expectations on Thursday and erased most of its gains Friday. Sales of $6.64 billion fell 20% annually and missed views of $6.73 billion for the quarter ended Sept. 1. Earnings declined a whopping 40% from last year to $1.45 a share.
The memory-chip maker drastically lowered its outlook for the current quarter. It now expects earnings of 4 cents a share and revenue of $4.25 billion. A year ago, it earned $2.16 a share on revenue of $7.69 billion. Summit analyst Kinngai Chan raised the stock to buy from hold on Thursday.
Several technology leaders are at multiyear lows. Dow Jones component Microsoft is at a level last seen in May 2021. Google parent Alphabet is at February 2021 lows; Nvidia is at March 2021 lows; Intel saw this level last in August 2015, while Advanced Micro Devices is at July 2020 lows. Tesla shares traded flat ahead of its AI day scheduled later today.
Bitcoin is down 55.7% for the year. On a monthly basis, however, Bitcoin performed better than the S&P 500. The large equity index fell more than 9% in September, according to IBD MarketSmith, while the cryptocurrency fell 2.3%.
