The stock market showed minor improvements in the past hour of trading, with the major indexes off the lows of the day in afternoon trading on Thursday. Investors seemed weary after the Federal Reserve's announcement Wednesday and economic news on Thursday.
The Fed unanimously left rates unchanged as expected at 5.25%-5.5%, but indicated one more rate hike by the end of the year to try to curb inflation.
The CME FedWatch tool shows a nearly 74% chance that the Fed will stand pat at the November meeting and a 26% chance of a quarter point rate hike in December.
The weekly initial jobless claims for the week ended Sept. 16 fell by 20,000 to 201,000 vs. the 225,000 consensus and below the prior week's revised 221,000. This was the lowest reading in eight months, indicating a continued strong labor market, adding to the fear that the Fed will continue its rate hikes.
Meanwhile, the Philadelphia Fed Manufacturing Index missed the mark for September, coming in at a negative 13.5 vs. a positive 0.5 expected, and far off from August's positive 12 reading. The index measures general business activity, new orders and shipments.
The benchmark 10-year Treasury yield added 13 basis points to 4.48%.
Stock Market Action
The Nasdaq fared the worst of the major indexes but improved slightly from larger losses, now down 1% in afternoon stock market action.
The Dow Jones Industrial Average slid 0.4% and the S&P 500 skidded 0.9%. The major indexes remain below their 50-day moving averages. All three are on pace for consecutive monthly declines for the first time this year.
The small-cap Russell 2000 fell 1.1% and slipped further below its 200-day moving average.
Volume rose on the NYSE and Nasdaq vs. the same time on Wednesday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF shed 1%. The Innovator IBD 50 ETF sold off hard, with a 2.1% drop.
S&P 500 Marks New Low As Yields Soar; Tesla Forges New Buy Point
Stocks On The Move
Valero Energy rose 3.5% on the heels of Wednesday's Raymond James price target lift to 164 from 150, with a strong buy on the petroleum manufacturer stock.
Shares tapped the 150.39 buy point of a long consolidation before trimming earlier gains. Its relative strength line is on a steep uptrend. The stock has gained 14% this month so far.
FactSet Research Systems recovered and gained 1.3% in heavy volume, after the company reported lower-than-expected fiscal Q4 EPS and higher sales. Shares are in a long cup-with-handle base with a 445.37 buy point. It also fell below its 50-day line but is trying to recover that level in a rough stock market day.
"FactSet made good progress on expense management," said Linda Huber, FactSet CFO, in the earnings release. "Looking ahead, we will maintain our focus on sustainable growth and profitability to fuel innovation," she added.
FedEx stock jumped 4.8% in huge volume, after the company reported better-than-expected fiscal first-quarter earnings and sales and raised the low end of its full-year 2024 EPS range. Several analysts raised their price targets on the stock. FDX stock reclaimed its 50-day line on the move and is a big gainer on the S&P 500 today.
The shipping stock is in a flat-base with a 270.95 buy point and broke above a trendline from the beginning of the base. Its relative strength line hit a 52-week high, as shown by the blue dot on the daily chart, according to MarketSmith.
Splunk Stock Rockets
Cisco sank 4.2% in heavy trading, after the company announced it would buy cybersecurity and data analytics software company Splunk for $157 a share in cash in a deal with an enterprise value of about $28 billion. Dow Jones component CSCO stock plunged below it's 50-day line, triggering a sell signal. CSCO is the biggest loser in the Dow Thursday.
Shares of Splunk gapped up over 21% in huge volume on the news. The stock is extended from a double-bottom base after an earnings breakout following its fiscal Q2 earnings report on Aug. 23.
IBD 50 stock Celsius Holdings sold off over 6% in heavy volume and snuck below its 50-day line. Shares are on track for a three-day sell-off and are coming off a 52-week high set on Sept. 8, following a post-earnings run-up.
KB Home sank 2.4% after the company reported higher-than-projected fiscal third-quarter EPS and revenue, but both numbers lagged last year's quarter. In addition, its homes delivered, average selling price and housing gross profit all decreased, while expenses increased.
The homebuilder stock is near the bottom of a consolidation with a 55.37 buy point.
Other Stock Market Action
CrowdStrike Holdings gave back early morning gains, now down 0.7%, after multiple analysts raised their price targets on the cybersecurity stock.
Nutanixrecovered somewhat, and added 0.8% after BofA Securities upgraded the enterprise cloud platform stock to a buy from a neutral rating and raised its price target to 50 from 39.
Novo Nordisk fell 3.8% after the Food and Drug Administration found "objectionable" bacteria in several batches of a key diabetes pill.
ELF Beauty sold off another 2.9% in heavy volume and was on track for a 10-day sell-off.
Olive Garden parent Darden Restaurants reversed course and fell 0.5% after the restaurant chain reported a beat on fiscal Q1 profit and sales forecasts.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
