Losses deepened in afternoon trading on the stock market today with the Dow Jones Industrial Average falling to session lows amid hot economic data. The blue-chip index was joined by the other major indexes as markets looked for a bottom.
The Dow dropped 0.8% and now sits well below all its key moving averages. Further, its 50-day line is now trending down, an added sign of weakness.
Meanwhile, the S&P 500 fell 1.4% while the Nasdaq underperformed with a 2.1% loss. Both indexes have broken their 200-day moving averages and erased all gains since late May. The small-cap Russell 2000 was up 1.2% at one point but gave up its gains and was slightly down in afternoon action.
Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Wednesday.
The Innovator IBD 50 ETF was down 2%. Crude oil fell 2% to $83.84 a barrel.
Treasury Yield Falls Amid Economic Data
The yield on benchmark 10-year Treasury notes fell 5 basis points to 4.89% following economic data. One report from the Labor Department showed that for the week ended Oct. 21, initial jobless claims rose to 210,000, above views of 208,000. The prior week's claims were revised up to 200,000 from 198,000.
Still, consumer spending continued unabated as third-quarter GDP showed a 4.9% increase, according to the Commerce Department. That was higher than views of 4.2% and more than twice the 2.1% growth reported for Q2.
Orders for durable goods placed by manufacturers in September blew past views and rose to 4.7% vs. analyst estimates of 1%, according to Econoday. Econoday also reported pending home sales picked up in September by 1.1% against views of a 1% decline and after August's steep 7.1% fall.
Late Wednesday, striking United Auto Workers members reached a tentative deal with Ford that may set the pattern for reaching an agreement with Stellantis and General Motors. The deal includes a 25% salary hike over 4-1/2 years. Approval by the UAW is pending as workers return to Ford after six weeks.
Ford stock erased early gains and fell 1%. The company reports earnings after the market close.
Dow Jones: Apple, Microsoft, Merck
Among Dow Jones components, Apple fell 3% and sits below the 200-day moving average for the first time since March 2 as it heads into its earnings report next week.
Microsoft is near a buy point of 340.86 after an earnings gap-up Wednesday. But the stock was down more than 3% Thursday afternoon.
Meanwhile, Merck jumped 3% and reclaimed the 50-day line. The drugmaker reported third-quarter results and raised its full-year sales outlook to $60 billion. It also revised its forecast on earnings to a midpoint of $1.36 per share for the year.
Intel reports after market close. Shares are just above the 200-day line.
Outside The Dow Jones: Stocks Moving Today
Facebook parent Meta Platforms fell below the 50-day line despite strong revenue and earnings that beat views. Shares fell during the earnings conference call late Wednesday after the company referred to uncertainty in its advertising segment, a key contributor to revenue.
In oil-and-gas equipment, TechnipFMC is trying to break out of a flat base with a buy point of 21.67. The company's relative strength line is at a new high.
Align Technology continued to languish after gapping down more than 25% on earnings. Third-quarter sales rose 7.8%, but earnings of $2.14 per share were lower than $2.22 a year ago. The company expects a seasonal slowdown in the fourth quarter compounded by supply risks amid the Middle East crisis.
Among newer issues, Mobileye and Nextracker were among those reporting results. A combination of pricing and volume saw Mobileye's third-quarter revenue grow 18%, but earnings of 22 cents a share came in 47% higher than the year-ago quarter. The company lowered its sales forecast for the full year but raised its profit outlook. MBLY stock rose to retake the 50-day line.
Solar equipment maker Nextracker reported a 23% gain in sales and raised its revenue and earnings target for the full year. NXT initially surged but reversed and was 1% lower in the afternoon.
Warren Buffett's Berkshire Hathaway bought more shares of Occidental Petroleum. The fund now has a 25.8% stake in the oil giant, according to reports. Shares of OXY gained after the news but have pared back.
Futures: Correction Intensifies As Titans Tumble; Amazon Volatile Late
ServiceNow And Mastercard
Subscription revenue grew 27% for cybersecurity software company ServiceNow. For the full year, the artificial intelligence play expects subscription revenue of 26%. Shares of the IBD 50 component rose and are fighting for the 50-day line in a flat base with a 614.36 entry.
Elsewhere outside the Dow Jones index, Mastercard gapped below its 200-day line. The firm gave a weak growth outlook after it reported 11% growth in revenue and 14% earnings growth for the third quarter. The stock has undercut its base with a drop of 5%.
Western Digital set off a round-trip sell signal by falling below its buy point after a 20% gain. Sellers are weighing down the stock on high volume not seen since the base formed. Earnings are due Monday.
Finally, electronics contract manufacturer Celestica gapped down below its 50-day line — another sell signal.
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