Major indexes gave up Wednesday's gains on strong job data. The Dow Jones Industrial Average pared back some of today's early losses of 2% and was off 1.2% at noon ET. The Nasdaq also traded slightly above morning's lows, down 2.5%, while the S&P 500 moderated its decline to 1.7%.
The small-cap Russell 2000, which fell 3% earlier, is now down 2.6%. The Innovator IBD 50 ETF is down 1.4%.
Volume on the NYSE and the Nasdaq was lighter at midday vs. the same time Wednesday.
Crude oil traded at $82.32 a barrel, down 0.2%. The yield on the benchmark 10-year Treasury is off Wednesday's high of 3.97% but up 11 basis point today to 3.81%.
Initial jobless claims were 193,000 and lower than the 232,000 the previous week. The four-week moving average for initial claims declined for the fifth straight week. The signs of continued strength in the labor market increase the chance of higher interest rates going into 2023.
Stocks Moving Today Outside Dow Jones
Meme stock Bed Bath & Beyond fell nearly 4% after another bout of dismal earnings. The home goods company had a loss of $366 million (or $4.59 per share) in the August-ended quarter, compared with a loss of $72 million and 73 cents during the same period in 2021.
CarMax and RiteAid have gapped down more than 20% after missing views. CarMax's total used-vehicle sales declined 6.4% vs. last year while same-store sales fell 8.3%. Shares are at their lowest point since April 23, 2020, when they hit 65.99, and are on pace for their largest percentage decline since March 16, 2020, according to Dow Jones Market Data.
RiteAid's revenue of $5.9 billion fell from $6.1 billion a year ago, while its net loss increased to 63 cents per share from 41 cents. Shares have gapped down 25% today.
First Solar rose 1% in premarket trading but reversed lower. ISI analyst Sean Morgan upgraded the stock to outperform with a price target of 150. Shares have fallen 2% in early trading.
BofA analyst Wamsi Mohan downgraded Apple to neutral and lowered the price target due to weaker consumer demand. Shares of the iPhone maker are trading 4% lower.
In the IBD 50, Daqo New Energy and Funko have fallen below their 200-day lines today.
Futures Rise Even As Dow Giant Plunges
Warren Buffett's Fund In List Of Less Volatile, Undervalued Stocks
Rating company Morningstar added Warren Buffett's Berkshire Hathaway to its list of undervalued and low-volatility stocks to buy and hold. Berkshire class B shares rose over 2% yesterday from 18-month lows and are down 2% today.
Other companies on Morningstar's list include health care companies Grifols , Baxter International and Roche , as well as HSBC and Dow Jones component Verizon Communications . Roche is testing its 50 day moving average. But Roche and the other stocks are in long-term downtrends.
Micron is on tap with earnings after market close. The company had warned of lower consumer demand, and shares traded at two-year lows on Monday. They are testing that level again today.
However, Rosenblatt's Hans Mosesmann maintained a buy rating on Micron with a 100 price target ahead of earnings. JPMorgan's Harlan Sur maintained an overweight rating with a lower price target of 65-80.
Bitcoin Flashes In Currencies and Mining
Bitcoin is trading below $20,000. But surprising signs are erupting in its mining. Mining reached an all-time high based on a 30-day moving average. Higher mining has usually gone with higher Bitcoin prices during previous bull cycles. Elsewhere, Bitcoin trading against the British pound rose after the pound almost fell to parity with the dollar on Monday.
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