The stock market held onto losses in afternoon trading on Thursday with the major indexes in the red. Meanwhile, earnings reports moved several notable names, including Cisco Systems, Walmart, Palo Alto Networks and Alibaba. And resurgent Intel moved higher on an analyst upgrade.
The Dow Jones Industrial Average retreated 0.3% and the Nasdaq composite trimmed 0.1% on the stock market today. The S&P 500 was relatively flat. All three major indexes remained solidly above their 50-day moving averages. The small-cap Russell 2000 shed 1.6% and managed to remain above its 50-day line. But it also bumped up against its 200-day moving average, only to fall below it.
Volume fell on the New York Stock Exchange and the Nasdaq compared with the same time of day Wednesday.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, dipped 0.1%. The Innovator IBD 50 ETF edged 0.9% lower. And the 10-year Treasury yield shed 10 basis points to 4.44%.
Initial weekly jobless claims for the week ended Nov. 11 came in at 231,000 vs. estimates for 222,000. That topped the prior week's revised 218,000.
Meanwhile, the Philadelphia Fed Manufacturing index came in at a better-than-expected -5.9 vs. the -11.00 forecast for November, according to Econoday. The reading was an improvement over October's -9.0, but a reading below zero still indicates deteriorating conditions. The metric measures regional business activity.
Stock Market Action: Intel Stock Jumps
Intel popped more than 5% after Mizuho Securities upgraded the chip and server stock to buy from neutral and raised its price target to 50 from 37. Shares are extended from the 5% buy zone of an irregular base with a 40.07 buy point. INTC stock and its relative strength line hit 52-week highs on Thursday, according to MarketSmith pattern recognition.
The stock is on pace to close at its highest level since June 7, 2022, according to Dow Jones Market Data.
Sonos surged more than 17% after the consumer electronics company reported a smaller-than-expected loss for its September quarter and sales that beat views. Shares reclaimed the 50-day line in heavy trading. The company has underperformed with its lagging fundamentals and dismal 15 IBD Relative Strength Rating.
Williams-Sonoma rallied and broke out of a base after hitting the 164.47 handle buy point. Shares are in the 5% buy range reaching to 172.69.
The move came after the home goods retailer exceeded forecasts on its October-quarter sales but missed on earnings estimates. Management gave a lower fiscal 2023 revenue outlook but raised its operating margin range to 16% to 16.5% from its previous 15% to 16% forecast.
WSM stock and its RS line also hit 52-week highs on Thursday.
General Electric broke out of a flat base after reaching a 117.96 buy point, and is back in the buy zone after pulling back. The stock has been on an uptrend as it looks to streamline its aerospace and defense business. Shares are on pace to close at their highest level since Nov. 10, 2017, according to Dow Jones Market Data.
Dole fell more than 7% after the fruit and vegetable producer reported third-quarter earnings that fell 14% from the year-earlier period. Also, sales came in lower than analysts expected. The stock sank below its 50-day line, giving a warning sign to investors.
Dow Stocks Lose After Earnings
Dow Jones stock Cisco Systems gapped down after the company reported higher-than-expected earnings and sales for the fiscal quarter that ended in October. But the company gave a lower outlook for its January-ending quarter and full-year fiscal 2024.
The network equipment maker was already below its 50-day line and fell sharply in heavy volume below its 200-day line on Thursday. Cisco stock is on pace for its largest one-day percentage decrease since May 19, 2022, when it fell 13.73%, according to Dow Jones Market Data. CSCO was the biggest loser on the Dow Jones and S&P 500 today.
Fellow Dow Jones component Walmart plunged in heavy volume after the big-box retailer reported a beat on its fiscal third-quarter profit and revenue, but gave a full-year fiscal 2024 earnings outlook that disappointed. Shares fell below the 164.33 buy point of a cup-with-handle base. WMT stock is on track for its largest one-day percentage decrease since July 26, 2022, when it fell 7.6%.
Outside the Dow, Palo Alto Networks fell more than 5% in heavy trading, even after the cybersecurity company reported fiscal first-quarter earnings and revenue that exceeded analyst estimates. The disappointment came from Palo Alto's lower current quarter and full-year fiscal 2024 billings outlook versus Wall Street views. The IBD Big Cap 20 name undercut its 50-day line on Thursday's drop, flashing a warning sign.
Conversely, Macy's gapped up in huge volume after the retailer reported October-quarter earnings and sales that were better than expected. Margins and inventories improved, while management raised its full-year fiscal 2023 profit outlook. Still, M stock remains below its 200-day line.
Market Pauses; Elon Musk's 'Actual Truth' Hits Tesla
Big Stock Movers: Airline Stock Soars
Copa Holdings rallied more than 2% after the Panamanian airline reported a beat on third-quarter profit but a miss on sales. The airline also reported a 10% rise in October passenger traffic from a year earlier. Shares tested the 200-day line in Thursday's stock market action.
Alibaba stock tumbled more than 9% in huge volume after the China-based e-commerce company reported fiscal second-quarter earnings. Revenue rose 9% and beat views while adjusted earnings also topped estimates. The company announced an annual dividend and canceled the spinoff of its cloud intelligence group.
Management said the divestiture "may not achieve the intended effect of shareholder value enhancement," according to Dow Jones Newswires. BABA plunged below its 50-day line, flashing a sell signal.
Deckers Outdoor fell more than 3% after Piper Sandler downgraded the stock to neutral from overweight but raised its price target to 650 from 620. The IBD 50 footwear and apparel stock is extended from a flat base after shares gapped up following Deckers' September-quarter earnings report on Oct. 26.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
