The stock market reversed lower and was near session lows in afternoon trading Thursday as Treasury yields suddenly jumped. Investors awaited comments from Federal Reserve Chair Jerome Powell.
The S&P 500 gave up a 0.2% increase and was down 0.2%, near potential resistance at the 4,400 level. If the S&P could switch gears and manage a ninth straight gain Thursday, it will match the index's longest winning streak since Nov. 5, 2004.
The Nasdaq also fell 0.2%. The small-cap Russell 2000 was off 0.7% and has given back roughly half of its rally from the Oct. 27 low.
Further, the Dow Jones Industrial Average fell 0.2%. Dow component Walt Disney jumped 7.6% after September-quarter results topped forecasts late Wednesday and the entertainment giant raised its cost-restructuring goals. On Wednesday, the actors' union reached an agreement with studios and streaming content companies to end a strike.
Volume rose on the New York Stock Exchange and Nasdaq compared with the same time on Wednesday.
The 10-year Treasury yield jumped nearly 11 basis points to 4.63% Thursday afternoon. An auction of Treasury bonds was weak, MarketWatch reported.
Stocks and bonds could see more volatility today. At 2 p.m. ET, Powell speaks on monetary policy at an International Monetary Fund conference.
Stock market reaction to the latest job data was muted. Jobless claims eased by 3,000 last week to 217,000. Economists had forecast 220,000 for the most recent week.
Stock Market Marks Longest Win Streak In Two Years
The Nasdaq and S&P 500 on Wednesday marked their longest win streaks in exactly two years. But with indexes moderating their gains and testing resistance levels, investors should be prepared for the stock market to give back some ground. So far, the market has avoided distribution days.
Among notable stocks, Nvidia rose past the 476.09 buy point of a double-bottom base. Volume was about 50% above average. The chip company is preparing to launch three chips for the China market that could sidestep export restrictions, Barron's reported.
Tesla deepened its loss to 6% in afternoon trading as its 200-day moving average proves to be an obstacle. The company raised prices in China on the long-range versions of its Model 3 and Model Y. Separately, HSBC initiated coverage of Tesla with a "reduce" recommendation.
Earnings reports also highlighted the stock market session. Jackson Financial broke out of a cup-with-handle base in heavy volume after the annuities provider reported third-quarter results. But earnings and revenue growth continued to decline.
TransDigm jumped past the 940 buy point of a cup base in heavy volume. Its buy zone extends to 987. Investors applauded the company's September-quarter sales and earnings, which topped views. TransDigm also is buying the Electron Device Business from a subsidiary of privately held TJC for $1.39 billion in cash.
TDG stock surged 9%, putting it on pace for its best day in almost 12 months, according to Dow Jones Market Data. TDG's 10-day win streak has won it a nearly 19% price jump, the stock's best since another 10-day streak ended Nov. 11, 2020.
HubSpot, Arm Among Stock Market Movers
HubSpot reversed lower despite the business software company beating sales and profit expectations late Wednesday. Raymond James and Morgan Stanley cut their price targets following the quarterly report. HubSpot shares met resistance at the 200-day moving average.
AppLovin remained volatile after the mobile app marketing firm late Wednesday beat third-quarter expectations. Its current-quarter outlook also surpassed estimates. The stock topped the 42.22 buy point of a double bottom but has been above and below the entry Thursday.
Meanwhile, two initial public offerings from September fell after both made their first quarterly reports since their IPOs.
Arm Holdings slid 6% as the chip company late Wednesday beat analysts' expectations but its current-quarter forecast missed estimates.
Instacart parent company Maplebear late Wednesday reported a loss of $20.86 per share on sales of $764 million. Analysts polled by FactSet had expected a loss of $15.07 per share on sales of $737 million. Maplebear tumbled more than 9%.
EV Stocks Mixed; No Lift For Lyft
Li Auto dropped 3.7% but continued to form a cup base. Earlier Thursday, the China-based maker of electric vehicles reported strong third-quarter earnings and its fourth straight profitable quarter.
Lyft was down 3.2% as it tested resistance at its 200-day moving average. The ride-share platform said adjusted third-quarter earnings came in at 24 cents a share on $1.16 billion in sales. Analysts had expected 15 cents a share and $1.14 billion in sales.
The Innovator IBD 50 had been outperforming the stock market today. But the ETF was nearly flat in afternoon trading.
Duolingo led the IBD 50 with an 17.5% vault to new highs at midday. The language-learning platform surprised Wall Street with a third-quarter profit as revenue rose 43%. A September breakout from a double-bottom base failed, but now the stock has surged past its 162.20 buy point.
Workday climbed back above its 50-day moving average. Copart is almost touching the 47.38 buy point of a flat base.
