The stock market was mixed Thursday morning, after a sell-off in Cisco Systems hurt the technology sector.
The Nasdaq composite fluctuated and was up 0.1% at 10:10 a.m. ET. Apple fell nearly 1% and is at the lowest point since October. The Technology Select Sector SPDR ETF fell 0.2%.
The S&P 500 lost 0.3% as indexes moved off session lows. Its decline from the November peak of 4818 is now nearly 20%, which typically defines a bear market. The Nasdaq is already well into a bear market.
The Dow Jones Industrial Average was down 0.8%, mainly because of Cisco. The stock tumbled nearly 14% to the lowest price since November 2020. The networking equipment maker reported mixed April-quarter results and gave weak guidance. The company said China's Covid lockdowns worsened supply-chain snarls. Cisco is having its worst day since Feb. 10, 2011, when it fell 14.2%, according to Dow Jones Market Data.
Volume rose on the Nasdaq and NYSE compared with the same time on Wednesday.
While techs were broadly lower, the sector wasn't today's worst performing. Energy Select Sector SPDR fell 1.8% in a second straight slide as the price of U.S. crude oil tumbled again. It fell 2.6% to $106.78 a barrel as recession worries slammed energy and agricultural commodities.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31214.47 | -275.60 | -0.88 |
| S&P 500 | (0S&P5) | 3910.17 | -13.51 | -0.34 |
| Nasdaq | (0NDQC ) | 11463.47 | +45.32 | +0.40 |
| Russell 2000 | 176.21 | -0.03 | -0.02 | |
| IBD 50 | 30.12 | -0.10 | -0.33 | |
Last Update: 10:08 AM ET 5/19/2022 |
||||
Consumer Staples Select Sector SDPR lost 2.1%, adding to Wednesday's 6.4% rout. The ETF broke below the 200-day moving average Wednesday as retailers fell en masse.
Recession Worries Hit Bond, Stock Markets
Economic fears also are bringing down Treasury yields. The yield on the 10-year Treasury note fell 9 basis points to 2.79% and is down 16 basis points this week.
But Synopsys rose 7.8% after the company beat analysts' estimates, citing robust demand. The maker of chip-design software also gave a bullish outlook for the current quarter and full fiscal year.
Golden Ocean Group climbed 4.3% after the dry bulk shipping company easily beat analysts' expectations with a profit of 62 cents a share, and revenue increased 68% to $265.2 million. The company also set a quarterly dividend of 50 cents a share. Golden Ocean climbed to new highs.
The Innovator IBD 50 ETF fell a moderate 0.3%. Eli Lilly fell more than 3% and is testing the 50-day moving average while still forming a flat base with a 314.10 buy point. Murphy USA gapped below its 21-day exponential moving average.
Rally Isn't Broken Yet; EV Giant Rallies Before Big Launch
Jobless Claims Rise In Latest Data
Today's economic data didn't offer much help for the stock market. The number of jobless claims rose to 218,000 last week from a revised 197,000 the previous week. Economists had expected claims to stay at 197,000, according to Econoday.
Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, said the increase wasn't much more than expected. But major damage is already done, with quarterly results from major retailers such as Walmart and Target indicating that inflation is beginning to hurt the economy.
"The stock market is square in the crosshairs of the Federal Reserve, which no longer has its back and is solely focused on slowing inflation back down to their long-range target of 2%," Zaccarelli said in a commentary.
Bill Adams, Chief Economist for Comerica Bank, said the labor market remains quite tight. The insured unemployment rate fell 0.1 percentage point to 0.9% in the week ended May 7 from 1.0% in the prior week. That, Adams noted, is the lowest on record in a data set going back to 1971. The insured unemployment rate is the number of workers claiming continued state unemployment benefits as a share of all workers eligible for the programs.
