Major stock market indexes pared earlier losses at 1:30 p.m. Thursday. The Dow Jones Industrial Average traded down less than 1%. Thursday's economic data offset upbeat numbers from Dow Jones tech leader Cisco Systems.
January's producer price index (PPI) rose 0.7%, higher than 0.4% estimates. Initial jobless claims fell to 194,000, from 195,000 last week.
The small-cap Russell 2000 index also pared earlier losses, now down just 0.1%. Volume on the NYSE and Nasdaq was higher compared to the same time on Wednesday.
On Wednesday, FTX head Sam Bankman-Fried secured his $250 million bail, with the help of the former dean at Stanford's law school and a computer scientist at the college. Bitcoin hit a six-month high and traded close to $25,000.
Crude oil rose 0.2% to $78.88 per barrel. The yield on the benchmark 10-year Treasury note surged 3 basis points to 3.84%, continuing its steep ascent.
The PPI report indicated that demand for goods rose 1.2% in January, the highest amount since June 2022, driven largely by gas prices. Services rose 0.4%, the same as December.
The initial claims number of 194,000 was significantly lower than estimates of 200,000.
Peter Essele, Head of Portfolio Management at Commonwealth Financial Network, noted that "input prices further up the supply chain are increasing at a slower pace than those closer to the end consumer. Consumers should start to feel additional relief in the coming quarters as easing input costs filter down the production cycle to finished goods and services."
Stocks Moving Today Outside Dow Jones
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33947.98 | -182.83 | -0.54 |
| S&P 500 | (0S&P5) | 4123.07 | -25.21 | -0.61 |
| Nasdaq | (0NDQC ) | 11985.35 | -85.56 | -0.70 |
| Russell 2000 | 194.13 | -0.26 | -0.13 | |
| IBD 50 | 23.90 | -0.23 | -1 | |
Last Update: 1.30 PM ET 2/16/2023 |
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IBD Leaderboard stock Visteon increased fourth quarter sales by 35% to $1.06 billion but earnings fell 22% to $1.32 per share. Full-year earnings grew 153% on $3.76 billion in sales. Shares are up 3% and extended.
Late Wednesday, truck and auto equipment maker Allison Transmission beat views. Shares gapped up over 9% and are also extended.
On the Leaderboard Watchlist, Crocs surged over 7% after earnings.
Reliance Steel posted sales of $3.6 billion in the fourth quarter, down 9%, while earnings of $5.87 per share fell 14% year over year. Shares are extended.
Toast, Shake Shack and Datadog are also moving after earnings on Thursday.
TOST shares plunged over 15% while SHAK fell nearly 4% in the afternoon. DDOG traded 5% lower.
Futures Fall On Inflation; Tesla Extends Loss On FSD Recall
Lithium Plays In Focus
Lithium maker Albemarle is up over 5% after an earnings beat, with profit growing a staggering 754% year over year to $8.62 per share. Revenue grew 193% to $2.62 billion, Shares are clearing a handle in a cup with a buy point of 292.08.
On Wednesday, lithium rival Livent was flat after Wednesday's surge following a 400% rise in earnings per share, to 40 cents vs. consensus for 38 cents, on revenue of $219.4 million. Shares have cut through their 200-day moving average.
Cisco surged 6% after earnings late Wednesday.
The networking giant and Dow Jones leader beat earnings and sales views and raised its full-year outlook. Sales grew 7% to $13.6 billion while earnings rose 5% year over year to 88 cents per share. The company lowered its backlog 6% from the third quarter. Shares gapped up over 6% after a buy point of 50.81.
Seagen gapped up over 10% after earnings, vaulting over its 200-day line.
Earnings Deck
Applied Materials earnings are on deck after market close. Shares of the chip gear maker fell 2% but remained in a buy zone above a cup base with an entry of 116.19.
AutoNation and Deere earnings will follow on Friday. AN shares are extended while DE shares are below their 50-day line in a flat base.
Elsewhere, Tesla has plans to launch a revamped version of its Model 3, according to reports.
The new 'Highland' project will lower the number of parts in the interior, which will also reduce production costs. Tesla's investor day on March 1 will reveal more of its "Master Plan 3." Shares of the EV maker have skyrocketed this year, adding more than 70%. Shares were higher by less than 1% on Thursday as they approach resistance at the 200-day line Thursday.
Dow Jones Leaders On Watch
Salesforce is in a cup-with-handle base with a buy point of 178.94. Disney is building the right side of a cup with an entry at 118.28. Walmart is carving a handle in a cup with an entry at 154.74. WMT will report earnings next week.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
