The major stock market indexes remained in the red on Thursday, up in the last last hour and near the highs of the day. Investors felt skittish on recession worries.
The S&P 500 shed 0.5% while the Nasdaq gave back 0.4%. The Dow Jones Industrial Average was unchanged. The Russell 2000 small-cap index trimmed 1.3%.
The Nasdaq Composite is currently down over 31% since its record close on Nov. 19, 2021.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF pulled back 0.2%.
Volume on the NYSE and Nasdaq was lower vs. the same time on Wednesday.
Crude oil lost another 3.4% to $81.67 per barrel. The Energy Select Sector SPDR ETF fell 1.3%. Natural gas bucked the downward tide, gaining 4.6%. It is now back above $6 per million British thermal units.
The 10-year Treasury note yield shed four basis points to 3.77%. Bitcoin gained 1.3% to $16,495.
European markets were mixed, with the German DAX gaining 0.2% and the Paris CAC 40 losing 0.5%. The London FTSE 100 fell 0.3% in afternoon trading.
Odds for a 50-basis-point hike at the December Fed meeting are now 80.6% while 19.4% are looking for a 75-basis-point hike, according to the CME FedWatch Tool.
Initial jobless claims for the week ending Nov. 12 met expectations at 222,000, a decrease from the prior week's revised 226,000.
October housing starts fell to a 1.425 million annual rate vs. 1.410 million expected. Building permits of 1.526 million also beat consensus but were lower than September's 1.56 million.
Homebuilder sentiment is the lowest in over 10 years.
Investors remain worried about economic growth, despite some positive earnings outlooks. Participants must decide if the current stock market rally is just a bear market bounce, or a change in trend to the upside.
St Louis Fed President James Bullard remains steadfast, insisting the economy has not yet pulled back to levels they would like to see. He warned "the policy rate is not yet in a zone that may be considered sufficiently restrictive."
Major Retailers Report
Several retailers showed strength after positive Q3 earnings but not all were stock market winners.
Macy's rose 12.2% after better-than-expected Q3 EPS and sales. Same-store sales came in lower than expected. It also raised full-year 2022 profit guidance.
BJ's Wholesale Club gave back early morning gains, now down 5.8% despite positive Q3 numbers and higher full-year EPS guidance.
The gap down triggered the 7%-8% sell rule after the stock had rallied above the 79.79 buy point of a cup base.
Bath & Body Works soared over 21% in heavy volume after reporting a beat on Q3 top and bottom-line estimates. Management raised full-year 2022 EPS guidance.
The body care products retailer led the S&P 500.
Kohl's gained 1.9% after beating estimates, but withdrew full-year guidance due to the unexpected departure of its CEO. Economic headwinds were also cited for the withdrawal.
Stock Market Winners And Losers
Kulicke and Soffa Industries clawed back from early morning losses. The capital equipment maker added 2.9% after reporting better-than-expected fiscal Q4 2022 EPS and sales numbers, but disappointing Q1 2023 guidance.
Chipmaker Nvidia was unchanged after beating on the Q3 top line but missing on the bottom line. Management gave higher-than-expected Q4 sales guidance.
Cisco rallied 3.8% after a solid quarter, and higher 2023 sales and EPS guidance.
It is the Dow Jones leader today.
What To Do After Market Rally Finds Key Support
IBD 50 Movers
The Innovator IBD 50 ETF (FFTY) lost 1.6%, faring worse than the major stock market indexes.
Lithium producer Sociedad Quimica y Minera de Chile pulled back 6.5%, despite a positive Q3 report after the market closed Wednesday. The stock is the IBD 50 loser of the day.
Server and storage specialist Super Micro Computer gained 3.4% in heavy volume, leading the IBD 50. Shares are extended from a cup base, above its 75.03 buy point.
Biopharma company Neurocrine Biosciences added 2.2% and is in the 5% buy zone of a flat base with a 109.36 buy point.
