The stock market improved in the final hour of trading on Thursday as major indexes trimmed losses and closed off the lows of the day. Investors remained hesitant as they contemplated the higher-than-expected inflation numbers released before trading began.
The Nasdaq shed 0.6% on the stock market today. The Dow Jones Industrial Average sank 0.5%, while the S&P 500 edged lower by 0.6%. Meanwhile, the small-cap Russell 2000 felt the most pain and lost 2.2%.
The Nasdaq is finding resistance at its 50-day moving average while the S&P 500 holds firmly below its 50-day line. And the Dow continues to wallow below its 200-day moving average.
Volume rose on the New York Stock Exchange and the Nasdaq, compared with Wednesday's trading at the same time of day, in preliminary numbers.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, sold off 0.4%. The Innovator IBD 50 ETF fared worse than the major indexes and shed 1.7%.
Economic Data Surprises
Released before the open, the Labor Department's September consumer price index rose 0.4% on a month-over-month basis vs. the expected 0.3% rise, and down from a 0.6% gain in August. Year over year, the price gain was 3.7% vs. the 3.6% consensus. That was unchanged from August.
September core prices that exclude food and energy rose 0.3% month over month, meeting expectations. That was in line with the August reading. Year over year, core prices dipped to 4.1% — meeting the forecast and down from 4.3% in August.
The number of weekly initial jobless claims for the week ended Oct. 7 met expectations of 209,000, which was unchanged from last week's revised number.
Stock Market Action: Israel-Based Stock Sinks
Israel stock InMode plunged nearly 20% in huge volume after the company lowered its full-year 2023 revenue outlook ahead of its Nov. 2 earnings report. The medical aesthetics stock hit a 52-week low on Thursday's sell-off.
Dow Jones stock Walgreens Boots Alliance spiked 7% in heavy volume, after the pharmacy retailer reported lower-than-expected fiscal fourth-quarter earnings on higher sales. The company gave a fiscal 2024 earnings outlook that was below expectations. Walgreens recently announced it hired Tim Wentworth as chief executive; he starts on Oct. 23.
WBA stock tested its 10-week moving average in Thursday's move. The stock was the Dow Jones' biggest gainer on Thursday in stock market action.
Ford Motor stock fell 2% after its employees walked out of a major Ford plant in Kentucky as part of the United Auto Workers strike. The auto stock retreated from its 50-day line after testing the level Wednesday.
Delta Air Lines stock fell in volatile trade after the airline operator reported better-than-expected earnings for the third quarter on record revenue. The company saw strong international revenue, but that was overshadowed by airline stocks that have tumbled from canceled flights to Israel amid the outbreaking war.
Fastenal gapped up 7.5% in heavy volume after the company reported third-quarter earnings slightly above expectations with mostly in-line revenue. Shares are in the 5% buy zone, reaching to 69.40 after the stock hit the 59.43 buy point of a flat base. Its relative strength line hit a 52-week high, according to IBD MarketSmith.
The construction supply distributor was the biggest gainer on the S&P 500 Thursday.
Stock Movers: Steel Stock Tanks
Commercial Metals gapped down more than 9% in heavy volume, after the steelmaker reported a miss on its fiscal fourth-quarter earnings and a beat on sales. Quarterly earnings per share dropped 31% from last year's quarter on a 8% sales decline. The August quarter marks the third straight decline in profits.
IBD 50 stock Adobe gained 1.8% to make a five-day winning streak. Shares are in a flat base with a 570.24 buy point. ADBE's relative strength line hit a high on its weekly chart.
Shares of First Solar gave back earlier gains and sank 1.4% after Barclays upgraded the stock to overweight from equal weight. Barclays also cut its price target to 224 from 230.
Domino's Pizza gave back morning gains and dropped 1.1% but stopped short of its 200-day line. Volume was heavy. The company reported third-quarter profit that beat views, but said sales were lower. Quarterly EPS grew 50% as sales dropped 4% vs. last year.
Target gained 1.7% after BofA Securities upgraded the retail stock to buy from neutral and raised its price target to 135 from 120.
Look for Dow Jones components JPMorgan Chase and United Health to report earnings results on Friday. Citigroup, BlackRock and PNC Financial are also on tap.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
