Major indexes reversed lower sharply at the closing bell after a day of volatile trading. The Dow Jones Industrial Average fell 0.3% and was near session lows at 4 p.m. ET after the stock market went into correction Wednesday. For the week, the index was down 1.9% as it fell further below its 50-day line on Friday.
An early estimate of combined private sector manufacturing and service output for September came in at a precarious 50.1 according to Econoday, and was at a seven-month low. A reading below 50 shows falling output. Manufacturing fell to 48.9, but services remained higher at 50.2.
Yields eased after hitting a 52-week high of 4.48% Thursday following the Fed's decision for a hawkish pause in its interest rate policy. The benchmark 10-year Treasury note fell 4 basis points to 4.43% at 4 p.m. Oil continued its ascent, however, trading at $90.35 a barrel — a near 1% gain.
The S&P 500 erased all of its early gains at the closing bell and finished 0.2% lower, while the Nasdaq ended flat, having lost all of its promising gains during the trading day.
Volume on the NYSE and Nasdaq was lighter compared with the same time Thursday.
The small-cap Russell 2000 also shed its gains and fell 0.1%.
The Innovator IBD 50 ETF outperformed and added 0.2%.
Dow Jones Stocks
Apple rose as the sale of the iPhone 15 handset started Friday, but the tech titan's stock still labors under its 50-day line. Caterpillar closed in on its 50-day line in a base. UnitedHealth rose in a three-day winning streak that helped the stock clear its 50-day line.
Chevron also led the Dow, while Cisco reversed from its steep fall on news of its purchase of Splunk, and rose on Friday.
Stocks Moving Today
Tech stocks had a good day overall. Atlassian, Zscaler and Micron rebounded from their 50-day lines. Among China stocks, PDD and JD gained. Meta Platforms reclaimed its 50-day line in a base and approached an entry of 312.87.
In energy, Dorian LPG held the bulk of its gains after breaking out of a cup with handle with a 28.69 entry.
Ford, General Motors and Stellantis pared early gains amid ongoing negotiations with the UAW. The UAW expanded the strike against General Motors and Stellantis on Friday. Ford is off the hook for now and was widely reported to have made progress in reaching a deal with the strikers.
Costco reports earnings on Tuesday. Shares rebounded, though in light volume, after a test of the 50-day line within a flat base. The stock is within 2% of the buy point of 571.16. The buy point is less than 1% above the 564.75 entry of a longer consolidation that started in August 2022, according to MarketSmith pattern recognition.
Progress Software, also due to report Tuesday, gave revenue guidance of $174 million at the midpoint for the third quarter. Shares are building support at the 200-day moving average.
Paychex, the business process outsourcing company that provides payroll and HR services, reports on Wednesday. Shares have fallen below the 200-day line.
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Micron To Report
Woes continue for Micron Technology, which also reports on Wednesday. MU stock rose from the 50-day line below a buy point of 71.16. But the stock has struggled to get ahead of resistance at around 75 since June.
The DRAM and NAND memory maker expects revenue of around $3.9 billion — a decline of 40% from the same quarter last year. Sales have declined the past four quarters. An expected loss per share of $1.19 after earnings of $1.45 per share in the prior year same quarter also suggests continued challenges after regulators in China said Micron's products did not pass a security review in May.
Growth has been tapering off for computer technology services company Accenture, which will hold its earnings call on Thursday. The company gave a dim sales outlook of $16.05 billion at the midpoint, or 4.2% growth from a year ago. Shares reclaimed the 50-day line on Friday, but they have been turned away from the 330 price level since June.
Jabil reports Thursday. The stock is trying to get back to its 50-day line after a breakout failed earlier. For the current quarter, the company gave a sales outlook of $8.5 billion at the midpoint with earnings per share of $2.32.
Dow Jones component Nike will hold its first-quarter results call Thursday as well. Shares are in a deep correction.
Cruise line operator Carnival reports on Friday. Shares were at risk of triggering a round-trip sell signal ahead of earnings in the stock market today.
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