The major indexes in the stock market are showing modest losses, as they pulled back in the past hour of trading. Earnings reports produced pain for Warren Buffett-backed StoneCo and Wolfspeed.
The Nasdaq composite was still struggling and dipped 0.3% in Thursday's stock market action. The Dow Jones Industrial Average also shaved off 0.3% and the S&P 500 inched lower 0.1%. The small-cap Russell 2000 pulled back 0.2%.
The Nasdaq composite remains below its 50-day moving average. The Dow is trading below its 21-day-exponential moving average for a third day, while the S&P 500 is under its 50-day line also for its third day in a row.
The Nasdaq 100-tracking Invesco QQQ Trust ETF also edged lower. And the Innovator IBD 50 ETF shed 1%.
Volume rose on the NYSE and fell on the Nasdaq vs. the same time on Wednesday.
The benchmark 10-year Treasury yield rose 6 basis points to 4.32%.
The initial weekly jobless claims for the period ended Aug. 12 came in at 239,000 vs. the 240,000 consensus and below 248,000 in the prior week.
The August Philadelphia Fed Manufacturing Index flashed a surprise reading of a positive 12.0 vs. the negative 10.0 expected, which showed expansion in the manufacturing sector.
Stock Market Action: Palantir Continues Its sell-Off
According to Wednesday's The Big Picture, IBD's recommended stock market exposure was lowered to 40%-60% in light of Wednesday's weak market action, down from 60%-80% exposure.
A market under distribution is not the time for new buys and should generally be avoided. Gains can evaporate quickly in a weak stock market.
Palantir Technologies sold off over 6% to sink deeper below its 10-week moving average. Shares lost over 27% so far this month so far, after racing to a 52-week high on Aug. 1.
The security software stock was on a downtrend, then got hit hard after the company reported its Q2 earnings report on Aug. 7, showing slower revenue growth.
Avnet rallied over 9% after the semiconductor and electronics maker beat fiscal fourth-quarter earnings and sales estimates, and gave Q1 sales and EPS guidance above analysts forecasts.
Dow Jones stock Walmart erased gains and is now down 1.9%. The big-box retailer beat fiscal second-quarter earnings and sales estimates and raised its full-year 2024 revenue and adjusted EPS outlook. The stock is finding support at its 50-day line.
Dow component Cisco Systems gained 4.2% after reporting better-than-expected fiscal Q4 profit and revenue. Shares hit a 52-week high on the move, which made Cisco the Dow's biggest gainer Thursday. The stock hit the 53.89 buy point of a three-weeks-tight pattern and is in a buy zone reaching to 56.58.
Aluminum packaging stock Ball popped 2.8% after it agreed to sell its Ball Aerospace business to U.K.-based BAE Systems for $5.6 billion, according to a Barron's article. BAE Systems stock sold off 4% on the news.
Futures: Bears Rule As Losses Pile Up; Ultimate AI Stock Fights On
Other Movers: Buffett Stock Sinks After Earnings
Shares of Buffett-backed Brazilian fintech StoneCo cratered over 6% in heavy volume, despite the company reporting positive Q2 earnings and sales numbers, and giving third-quarter revenue guidance above analysts' estimates.
Shares of Wolfspeed gapped down more than 15% after the company reported a larger-than-expected fiscal Q4 loss and guided for a larger first-quarter loss and lower revenue. The power device maker's stock fell further below the 50-day line.
Synopsys improved and is now up 0.3%, after the semiconductor test software maker reported a beat on its fiscal Q3 sales and profit estimates. Shares are back below the 50-day line.
CVS Health plummeted over 9% on news that Blue Shield of California will no longer use CVS Caremark for its pharmacy benefit manager. Instead, Blue Shield will utilize Amazon's at-home delivery service and Mark Cuban's Cost Plus Drug company for its low-cost drugs.
CVS stock fell below its 50-day line, flashing a sell signal. Amazon stock was flat.
Meanwhile, health care stock Cigna Group tanked over 7% and Dow stock UnitedHealth Group fell 1.2% in sympathy with CVS.
Hawaiian Electric sank over 19% in heavy volume on news of its potential liability in the Maui wildfires, according to the Wall Street Journal.
Lastly, in stock market action office management software stock Asure Software tumbled over 14%.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
