The stock market made little progress in the past hour of trading, with the major indexes still mixed on Thursday. Investors got spooked by the jobless claims number on top of yesterday's economic data and decided to keep selling for another day.
Initial weekly jobless claims for the week ended Sept. 2 dropped to 216,000 vs. the 238,000 consensus and lower than the revised 229,000 in the prior week, according to Econoday. The number is the lowest reading since February and shows the jobs market is still robust.
The data added fuel to yesterday's concern, after the August ISM services index reading came in higher than expected, causing investors to worry that the Fed may continue to raise rates.
The benchmark 10-year Treasury yield shed 2 basis points to 4.27%. The CME FedWatch Tool shows a 43.4% chance of a quarter-point rate hike at the Nov. 1 Fed meeting, but little chance of an increase at this month's meeting.
The Nasdaq slid 1% in afternoon trading stock market action and fell further below the 14,000 level. The Dow Jones Industrial Average reversed course, and is now up 0.3%, while the S&P 500 eased losses to 0.3%. The Dow Jones and S&P 500 were already below their 50-day moving averages, with the Nasdaq joining them today.
The small-cap Russell 2000 lost 1.1% and sank further below its 50-day line.
Volume rose on the NYSE and fell on the Nasdaq vs. the same time on Wednesday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF faded 0.8%. And the Innovator IBD 50 ETF pulled back 0.7%.
Stock Market Movers: Insulin System Stock Plunges
Shares of the several of the Magnificent Seven tech stocks, including Nvidia and Tesla, weighed down the Nasdaq.
Shares of Insulet sank 9.3% in heavy volume after UBS Group slashed its price target to 215 from 270 and maintained its neutral rating on the insulin delivery system stock.
PODD is the biggest loser in the S&P 500 today.
WestRock stock popped 4.1% in heavy volume, after the paper company announced it's in talks to merge with Ireland's Smurfit Kappato in a deal valued at approximately $20 billion, according to the Wall Street Journal. WRK stock is a big gainer in the S&P 500 today.
Seagate Technology stock gapped down 8.8% in heavy volume, after Barclays downgraded the hard drive maker to equal weight from overweight with a price target of 65. The stock fell below its 21-day exponential moving average and bounced off its 50-day line, finding support.
EV charging station stock ChargePoint plummeted 15% in huge volume, after the company late Wednesday reported a larger-than-expected fiscal second-quarter loss and lower revenue. Shares are down more than 38% on the year.
Quantum computing stock IonQ plunged over 12% in heavy trading after eight consecutive rising sessions. The decline stopped short of the 21-day line, as IONQ found support. The stock has gained over 382% this year so far.
UiPath stock gained nearly 11% in heavy trading, after the company reported higher-than-expected Q2 profit and sales, and raised its full-year 2024 revenue guidance.
Other Stock Movers: AI Stock Feels Pain
Shares of C3.ai tanked over 12% after the AI company reported a smaller-than-expected fiscal first-quarter loss and lower revenue late Wednesday. The company also gave current-quarter revenue guidance below analysts' expectations.
The stock slid further below its 21-day line but stopped short of its 200-day moving average.
Sprinklr stock trimmed earlier gains, and is now up 1.3% after the enterprise software company beat on second-quarter earnings and sales estimates late Wednesday and gave positive Q3 revenue guidance.
Shares are in the 5% buy zone of a cup base with a 15.50 buy point.
Dave & Buster's Entertainment sold off for a third day in a row. Shares trimmed larger losses, and are now down 4.3% in heavy trading, after the company reported slightly higher-than-projected Q2 profit but lower sales. The restaurant and entertainment stock sank further below its 200-day line.
Shares of drive-through coffee chain Dutch Bros eased from larger losses, and are now down 1.3%, after the company announced a public offering of $300 million of common stock. The stock slumped further below its 200-day line.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
