Stock market indexes recovered from larger losses but still closed in the red in Thursday's session. Investors kept their powder dry ahead of Apple earnings this afternoon, and Friday's April nonfarm payrolls report.
Analysts expect 178,000 new jobs in April while private payrolls are expected to rise 153,000. Manufacturing payrolls are expected to hold steady, while the unemployment rate is projected to inch up to 3.6%, from 3.5%.
The job market is one factor the Federal Reserve looks at for its policymaking decisions.
Initial weekly jobless claims for the week ended April 29 tallied 242,000 vs. 238,000 consensus, higher than last week's revised 229,000.
The Dow Jones Industrial Average sold off 0.9% while the Nasdaq trimmed 0.5%. The S&P 500 retreated 0.7%. The Russell 2000 fared worse than the major indexes due to its banking exposure, sinking 1.1%.
The Nasdaq dipped below its 21-day exponential moving average, and traded around the 12,00 level. The S&P 500 and Dow are also below their 21-day lines.
NYSE volume rose and Nasdaq volume fell compared with the same time on Wednesday, in preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF dipped 0.4% while the Innovator IBD 50 ETF fell 1.2%.
Crude oil pulled back 0.1% to $68.53 per barrel. Gold futures added 1% and traded at the $2,058 level.
Bitcoin rose 1.9% to $28,965. Cryptocurrency exchange Coinbase rallied in sympathy with crypto, adding 1.5%.
The 10-year U.S. Treasury yield shed 5 basis points to 3.35%. The CME FedWatch tool shows over 90% odds for no rate hike at the June Fed meeting.
The Federal Reserve raised the fed funds rate by a quarter point to 5%-5.25% Wednesday, as expected. The Fed policy statement implied they would pause rate hikes, at least in the short term.
Apple Reports Ahead Of Payrolls
Dow Jones component Apple is expected to report a Q1 profit of $1.43 per share after the closing bell, lower than last year's $1.53. In addition, earnings are forecast to trend lower through the September-ending quarter.
Analysts are looking for the Cupertino, Calif., tech icon to report Q1 revenue of $92.84 billion, building on recovering China iPhone sales.
However, they also expect slowing world economies to take their toll, dropping sales about $8 billion in the second quarter. AAPL stock fell 1.3% Thursday afternoon.
Stock Market: Bank Troubles Expand
PacWest plunged 50.6% on news that is considering a potential sale. The regional bank tried to ease investors' minds by reporting a rise in March deposits.
Peer regional bank Western Alliance Bancorp fell 38.5%, also in heavy volume, in sympathy with PacWest.
Superregional bank Comerica lost 12.3% while PNC Financial Services fell over 2.6% with the group.
The SPDR S&P Regional Banking ETF sank 5.5% on the banking pressure news.
Futures: Apple Rises On iPhone Sales; Cathie Wood Stocks Jump
Prostate Cancer Stock Roars Higher
IBD 50 stock Lantheus popped nearly 15% after reporting better-than-expected Q1 earnings and sales. The diagnostics imaging stock is nearing the 20% profit zone from the 77.04 buy point of a deep cup-with-handle base, according to a MarketSmith weekly chart.
Quarterly EPS grew a whopping 448% while sales increased 103% over the prior year's quarter. Shares surged on positive buzz for its PET imaging detection agent for prostate cancer.
IBD 50 stock Royal Caribbean jumped 7.2% in heavy volume, after beating on Q1 revenue and posting a smaller-than-expected loss. Management raised its full-year 2023 earnings guidance from previous estimates, which were also higher than analyst forecasts.
Quarterly sales grew 165% over the prior year's quarter. The cruise line company touted "swiftly" accelerating demand. RCL is in a flat base with a 76.40 buy point. RCL was Tuesday's IBD 50 Stocks to Watch pick.
IBD Big Cap 20 stock HubSpot rose 7.4% in heavy volume, following its stronger-than-expected Q1 profit and raised higher guidance. The report prompted several price target hikes by analysts.
The customer relationship management stock is extended from the buy zone of a flat base with a 418.49 buy point. HubSpot's stock gained over 50% this year so far.
Big Stock Market Movers
Installed Building Products lost 8.6% in heavy volume, after reporting a beat on EPS but a miss on Q1 sales estimates.
Shares dropped below the 50-day line, and also triggered the 7%-8% sell rule from the 121.70 buy point of a cup base.
Arconic soared 28.3% in very heavy volume, and broke out of a cup-with-handle base, hitting the buy point. The move comes after the aluminum supplier agreed to be bought by Apollo Global Management in an all-cash deal valued at about $5.2 billion.
Arconic also reported mixed results in its Q1 earnings report, which took a back seat to the deal news.
Asset manager Apollo Global Management sank 4.7%.
Shopify popped 23.8% and broke out of a cup-with-handle base, hitting and bypassing the 49.96 buy point. Its relative strength line also is at a 52-week high.
The cloud-based e-commerce platform posted an unexpected 7-cent-per-share Q1 profit and 26% sales growth.
The company also announced it will reduce its head count by 20%.
Regeneron Pharmaceuticals fell 6.1% in heavier-than-average daily volume, despite a beat on Q1 top and bottom lines, after lowering margin guidance. The move sent shares below the 50-day line, a warning sign.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
