Indexes reversed and fell sharply in afternoon trading on Thursday. The Dow Jones Industrial Average fell 1% and approached its lows for the day by early afternoon after a key inflation report showed consumer prices climbed higher than expected. The Dow is struggling to retake its 200-day line.
The consumer price index reported September inflation at 0.4%. That proved higher than economists' forecasts of 0.3% but lower than August's 0.6% hike, according to Econoday.
When compared with September a year ago, prices rose 3.7%, which was unchanged from August's year-over-year gain. Wall Street had expected it to ease to 3.6%. Core inflation, which excludes more volatile food and oil prices, met views of a 0.3% gain on a month-to-month basis and 4.1% year over year.
Meanwhile, weekly initial unemployment claims met views of 209,000 for the first week of October, unchanged from the prior week's revised 209,000.
The S&P 500 gave back early gains and fell 1.2% in the stock market today. And the Nasdaq dropped 1.2%. The tech-dominated Nasdaq retook its 50-day line on Wednesday, but the win is at risk.
Volume on the New York Stock Exchange and on the Nasdaq was higher vs. the same time Wednesday. Decliners overshadowed advancers by more than 2-to-1.
Further, small caps continued to struggle to keep a rally attempt alive, as the Russell 2000 fell 2.4%.
The Innovator IBD 50 exchange traded fund declined 1%.
Crude oil fell 0.5% to $83.03 a barrel. And the yield on the benchmark 10-year Treasury note rose 11 basis points to 4.70%.
Dow Jones Stocks
In earnings, Dow Jones component Walgreens Boots Alliance reported fourth-quarter earnings of 67 cents per share, down from 80 cents a year ago. But sales of $35.4 billion showed a 9.2% increase. For fiscal 2024, the drug retailer expects midpoint earnings of $3.35 per share. The stock jumped more than 4% and was the biggest gainer in the Dow, as shares try to take the 50-day line.
Among tech leaders, Apple has cleared its 50-day line.
UnitedHealth rose ahead of earnings on Friday. Shares have cleared an area of resistance and are approaching an all-time high of 558.10.
Stocks Moving Today
Delta Air Lines gave up early gains and fell after third-quarter revenue rose 13% and earnings increased 34%. For the fourth quarter, the airline operator sees revenue increasing by 12%. The company expects continued travel demand to boost revenue by 9%-12%. During the quarter, Delta got a rating upgrade from Standard & Poor's with a positive outlook based on its lower debt.
Profits rose on higher prices and higher delivery fees for Domino's Pizza. Earnings of $4.18 per share rose 50% from the prior year, though revenue declined 3.9%. Shares climbed nearly 3% in early trading but fell 1% at the hour.
Fastenal saw sales increase 2.4% with earnings up 4.1% from the year-ago quarter. Shares gapped up in a flat base and are in a buy zone above a buy point of 59.43. FAST was the biggest gainer in the Nasdaq 100.
InMode plunged 20% after the company announced preliminary third-quarter revenue of $123 million. That would be a sharp deceleration in growth to 1.5%. The company expects earnings to decline 10% from the prior-year quarter.
In the IBD 50, Adobe pared some early gains and remained near a buy point of 570.24 in a flat base. The relative strength line is at a new high. Shares rebounded in strong volume from the 50-day line on Thursday as the software company announced new features for its AI venture, including Firefly.
Argenx is on watch as it tries to retake the 50-day line in a base with a buy point of 532.60. Shares are also near their all-time high of 550.76. The biotech company provides drugs to treat autoimmune diseases.
MongoDB also is retaking the 50-day line and offers an entry at 414. The company ranks second in the software database group.
Novo Nordisk continued to add to its strong rebound from the 50-day line after news that its diabetes drug may also work to cure chronic kidney disease. Shares are above an alternative buy point of 100.88.
Dow Jones: Bank Earnings
Dow Jones components JPMorgan Chase and United Health will report earnings results on Friday. Citigroup, BlackRock and PNC Financial are also on deck.
Elsewhere, Vertex Pharmaceuticals is breaking out of a flat base with a buy point of 367. In the property and casualty insurance group, Everest Group is at its buy point of 395. Both are near all-time highs.
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