The Dow Jones Industrial Average plunged more than 250 points in afternoon trading on Friday, falling further below the 200-day line, even as Dow component Intel soared on earnings. Meanwhile, inflation data offered signs the economy was cooling.
The Dow sank 0.8%, adding to Thursday's losses of 0.8%. The S&P 500 lost early gains and fell 0.4% on the stock market today. And small caps were down, as the Russell 2000 lost 1.2%.
The Nasdaq composite, which outperformed earlier with a gain of 1.2%, gave up the bulk of gains and was 0.4% higher. All major indexes remain below key moving averages. The Nasdaq is on track for a 3% loss for the week and the third week of losses since it fell below its 50-day line.
Stocks in the so-called Magnificent Seven rose, with Meta reversing recent losses after its earnings report. Most others in this category also climbed, including Amazon, which surged nearly 7% on its earnings report issued late Thursday. The lone exception was Google-parent Alphabet, which gave back slender gains.
Volume on the New York Stock Exchange and the Nasdaq was lower compared with the same time Thursday. Breadth was poor as decliners outnumbered advancers.
In other financial news, the Innovator IBD 50 exchange traded fund fell 2.38%. Crude oil rose less than 1% to $83.73 a barrel. And the yield on the benchmark 10-year Treasury note rose 3 basis points to 4.87%.
The Commerce Department's personal income and outlays report for September, which said personal income rose 0.3%, was below estimates for 0.4% and cooler than August's 0.4% figure, according to Econoday. The core Personal Consumption Expenditures index showed growth of 0.3% on a month-to-month basis, in line with forecasts. On an annual basis, it tapered to 3.7%, meeting views.
Also, the University of Michigan consumer sentiment index came in at 63.8 for October, above economists' predictions of 63 and ahead of September's 63 score.
Dow Jones Stocks: Intel Gaps Up
Chip leader Intel gapped up and was near double-digit gains. The chip company beat Wall Street estimates and raised its outlook for the fourth quarter. The company said third-quarter earnings of 41 cents a share came in above FactSet estimates of 22 cents. Sales of $14.16 billion also topped views of $13.57 billion.
For the fourth quarter, the company offered an outlook on earnings of 44 cents a share at the midpoint of its range. That was well ahead of analyst predictions for 33 cents. The Dow component also expects sales of $15.1 billion, above views for $14.36 billion. Intel stock was retaking the 50-day line on Friday.
Elsewhere on the Dow, energy leader Chevron fell after results disappointed. The stock is on a six-day losing streak and has undercut the lows of a long consolidation.
Stocks Moving Today
Outside the Dow Jones index, continuous glucose monitor maker Dexcom gapped up and surged more than 10% after earnings. Third-quarter sales of $975 million grew 27% and beat expectations of $940 million.
Dexcom earnings of 50 cents per share rose 79%, above views of 34 cents. The company also raised its full-year sales outlook to $3.59 billion, beating analysts' calls for $3.55 billion. Dexcom stock is trying to clear the 50-day line.
Hoka footwear maker Decker also came in with a strong report for its fiscal second quarter. Earnings growth accelerated for the fifth-straight quarter, reaching $6.82 a share or a 79% gain. Revenue also surged to $1.09 billion, increasing 25%.
Analysts polled by FactSet expected Decker earnings of $4.43 per share on $961 million in revenue. DECK stock gapped up and broke out of a flat base with a buy point of 568.47. The relative strength line is also at a new high.
Apple, Fed Loom For Battered Market; Three Reasons To Like These 4 Stocks
Exxon Falls Below 200-Day; Tesla Tries To Rebound
Among other earnings movers outside the Dow Jones, Exxon fell below the 200-day line after its earnings report. Shares fell 2%.
Tesla was on the rise after a two-day losing streak. Shares gained 1.1%, currently at levels last seen in June and still under the 200-day line. Shares also likely rose on news that Tesla and Chief Executive Elon Musk may escape the scrutiny of European Union regulators on electric vehicle subsidies for now.
According to the South China Morning Post, Tesla imports more EVs from China to Europe but is not among those using subsidies to skew the market in their favor. Among those being investigated is rival EV maker BYD.
Warren Buffett's Berkshire Hathaway reportedly is being sued by the Haslam family over its accounting method pertaining to the family's Pilot Travel Centers, a U.S. truck stop operator. BRKB stock is undercutting a flat base and is at risk of falling below the 200-day line ahead of earnings in a three-day losing streak.
In insurance, Kinsale Capital Group has gapped down below the 50-day line in strong volume after earnings — a sell signal. Another insurer, Aon, has gapped down and undercut its base after third-quarter results.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
