Major stock indexes briefly crept into positive territory but ultimately failed to overcome higher-than-expected inflation data and weakened in the final 15 minutes of trading Friday. The Dow Jones Industrial Average, S&P 500 and Nasdaq all ended five-week winning streaks with the closing bell on the stock market today.
The Dow faded nearly 0.4% while the benchmark S&P 500 index skidded nearly 0.5%. The S&P, however, managed to remain slightly above the 5,000 level.
Meanwhile, the Nasdaq deteriorated and shaved off 0.8% while the small-cap Russell 2000 fared the worst, falling nearly 1.4%.
The stock market will be closed Monday Feb. 19 in observance of Presidents Day.
The 10-year Treasury yield added 4 basis points, and stood just under 4.3%. Volume fell on the New York Stock Exchange and the Nasdaq compared with the same time on Thursday, according to preliminary estimates.
The Invesco QQQ Trust exchange traded fund ended the day 0.9% lower, while the Innovator IBD 50 ETF sank 1.5%. The SPDR S&P 500 ETF slumped 0.5%.
Indexes sank as the Labor Department's January producer price index rose 0.3% vs. the 0.1% expected gain, with an annual increase of 0.9% vs. estimates for 0.7%. The core reading, excluding food and energy, increased 0.5% vs. a forecast modest 0.1% rise, while the annual number climbed 2% vs. the projected 1.7%.
Stock Market Today: Dropbox Drops, Supermicro Stock Tumbles
Dropbox sold off 22.9% in heavy volume after the company reported slowing fourth-quarter profit and sales growth and a disappointing 2024 revenue outlook. The cloud storage and collaboration stock sank well below its 50-day and 200-day moving averages, flashing sell signals.
Coinbase Global gapped up 8.8% in heavy volume, and broke out of a cup base with a 187.39 buy point, before retreating below that entry. The 5% buy zone reaches to 196.76.
The jump came after the cryptocurrency exchange platform operator reported a fourth-quarter profit far exceeding estimates and a beat on sales views. This follows a series of quarters in the red, but the stock has climbed as the price of bitcoin trades past $52,000.
Super Micro Computer made a bearish reversal after it topped 1,000 for an all-time high in heavy trading on the stock market today. Supermicro shares started to tumble shortly into the session after showing signs of what looked to be a climax top, and ended the session down 20%. Some investors looked to put options as a hedge to help offset a loss.
Trade Desk gapped up nearly 17.5% in heavy volume after the company's in-line fourth-quarter adjusted earnings and revenue came in higher than projections. The online advertising platform stock touched a 91.85 buy point out of a long, irregular base before retreating.
DoorDash gapped down 8.1% in huge volume after the company reported a fourth-quarter loss that was larger than Wall Street predicted. Shares backed off from a 52-week high reached on Thursday.
Other Stock Action: Applied Materials Stock Hits A High
Roku plummeted 23.8% after the company reported higher sales and a 55-cent fourth-quarter loss as expected. But the company said per-person revenue fell amid what it called a "challenging" market.
The streaming video platform stock sank below its 50-day and 200-day moving averages, flashing a sell signal. Roku stock also racked up its largest one-day percent decrease ever. The previous record was a 23.07% drop on July 29, 2022.
Applied Materials gapped up nearly 6.4% after the company beat fiscal first-quarter adjusted earnings and sales views. The stock is extended from a 20% profit zone of a double-bottom-base with a 148.40 buy point. Shares reached an all-time high on Friday.
IBD 50 stock DraftKings reversed from morning losses and closed nearly 0.3% higher. The online sports betting giant reported better-than-expected fourth-quarter earnings while revenue slightly missed estimates.
Dow stock Nike weighed on the index, falling 2.4% on news it will cut more than 1,600 jobs as part of a cost-cutting strategy. The footwear and athletic apparel stock also felt pressure after Oppenheimer downgraded the stock to perform from outperform and cut its price target to 110 from 150. Nike stock traded below its 50-day and 200-day lines on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
