The Nasdaq composite and S&P 500 reversed lower after a rebound attempt faded in afternoon trading. Investors may be skittish ahead of Friday's inflation report.
The Dow Jones Industrial Average held on for a 0.2% gain and closed below 40,000 level after spending most of the session above it. The Dow did hold above its 21-day exponential moving average, though.
The S&P 500 closed 0.5% lower and failed to recapture the 50-day moving average on the stock market today. The Nasdaq's losses accelerated in late trading and the composite closed 0.9% lower. On Wednesday, the tech-weighted index broke support at the 50-day moving average for the first time since May 2. It remained below that level.
The small-cap Russell 2000 outperformed with a 1.2% increase, erasing much of Wednesday's 2% loss.
Volume rose on the New York Stock Exchange and fell on the Nasdaq, according to unconfirmed data.
The Innovator IBD 50 exchange traded fund faded 1.3%.
The yield on the benchmark 10-year Treasury note fell three basis points to 4.25% after an inflation measurement in the GDP report came in higher than forecast.
2:58 p.m. ET
PCE Data Due; Buffett Trims BofA
Investors may be guarding themselves ahead of the crucial personal consumption expenditure (PCE) price index. The report — the Fed's favorite measure of inflation — is released Friday at 8:30 a.m. ET. It will be the most important economic data ahead of the Fed's meeting next Tuesday and Wednesday.
Warren Buffett unloaded shares of Bank of America, according to an SEC filing. Buffett's Berkshire Hathaway sold a total of 18,899,518 shares of Bank of America this week. Berkshire had 980 million shares of the bank after the last sale on Wednesday.
Several stocks triggered sell signals. Celestica fell below the 50-day moving average in higher-than-average volume after the company announced quarterly results.
Eli Lilly also triggered the same sell rule after testing support at that level since last week. Pinterest traded more than 8% below a buy point of 41.60 and triggered the 7% sell rule.
1:36 p.m. ET
IBM Breaks Out On Earnings Report
Earnings movers on the stock market today include IBM, KLA and ServiceNow.
Managed health care provider Molina Healthcare gapped up above its 50-day moving average after second-quarter results. In building and construction products, Masco gained over 8% despite a mixed second-quarter report. Its stock topped the 75.69 buy point of a handle.
11:36 p.m. ET
Stock Market Today: GDP Beats Estimates
The Labor Department said second-quarter GDP rose 2.8% on an annual basis, compared with Econoday estimates for 1.9%. A second reading with more data is scheduled for Aug. 29.
Meanwhile, orders for durable goods fell sharply by 6.6% in June after rising 0.1% in May. Economists had expected a small gain of 0.3%. Further, initial unemployment claims for the week ended July 20 fell to 235,000 from the prior week's 245,000. That came in below views for 238,000.
The data comes ahead of the Federal Reserve's meeting next week when traders expect rates to remain unchanged. A first cut is expected in September, according to the CME FedWatch Tool.
Nvidia Fights AI Fatigue, ServiceNow Jumps; Inflation Data Due
Dow Jones Icon Rises
IBM rose past a buy point of 189.47 on the stock market today after second quarter revenue and earnings exceeded analyst estimates. With a surge of more than 3%, it was the biggest gainer in the Dow. Other Dow tech stocks were mixed as Microsoft and Apple fell while Salesforce gained.
Outside the Dow, earnings moved ServiceNow to break out with a 12% jump after earnings for the second quarter beat analyst views while revenue also edged past expectations. Shares were in a long consolidation and have gapped up above a buy point of 815.32, according to IBD MarketSurge.
United Rentals staged a recovery from Wednesday's fall and rose more than 2% after second quarter results late Wednesday.
Among chip stocks, KLA rose in the stock market today after fourth quarter results came in above views. The chip leader also raised its outlook for the current quarter. But the stock is trading below the 50-day moving average.
In health care, Mira Pharmaceuticals soared more than 16% after new data suggested its drug candidate for treating neurological disorders may have fewer side effects. The company plans to submit an application for FDA investigation later this year.
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