Stock indexes pared some losses in the final half-hour of trading Thursday after wholesale price gains in February surprised investors and retail sales weakened. Nvidia and Super Micro Computer plunged in the stock market today, even as analysts turned bullish on both AI leaders. A Cathie Wood holding soared.
Bitcoin and gold fell as Treasury yields surged. Elsewhere, the Federal Reserve's meeting and decision on interest rates is due Wednesday.
The Dow Jones Industrial Average fell nearly 0.4% on Thursday even as some tech leaders did well. The S&P 500 and Nasdaq fell 0.3%. But the small-cap Russell 2000 suffered a heavy loss of 2.4%.
Figures from the Labor Department showed the producer price index in February rose 0.6%. Economists had expected monthly wholesale prices to rise 0.3%. On an annual basis, prices rose 1.6%, higher than views for 1.2%.
In other economic data, initial jobless claims for the week ended March 9 fell to 209,000. Economists had expected claims of 215,000, according to Econoday. Also, February's retail sales rose 0.6% vs. views for 0.7%, after falling 0.8% in January.
Most sectors in the S&P 500 were lower in the stock market today, though communications services and energy rose.
Volume on the New York Stock Exchange and on the Nasdaq climbed from Wednesday, according to preliminary data. But breadth was discouraging, with decliners beating advancers by 4-to-1 on the NYSE and nearly 8-to-3 on the Nasdaq.
The yield on the benchmark 10-year Treasury note jumped 10 basis points to 4.29%. In an unwelcome move for stocks, the yield climbed above its 200-day moving average, to the highest since Feb. 29.
The Innovator IBD 50 exchange traded fund suffered a loss of 1.7%.
The Federal Reserve will meet on Wednesday for its rate decision. According to CME FedWatch Tool, the odds of rates staying unchanged is an overwhelming 99% in March but is just 37.1% for June.
Dow Jones Stocks
On the Dow Jones index, only seven stocks gained on Thursday. Apple and Microsoft rose, as did Visa. Microsoft and Visa are rebounding from their 10-week moving averages.
But JPMorgan Chase, Verizon and IBM weighed on the Dow index.
Outside the Dow, Nvidia closed 4.2% lower. On Thursday, BofA Securities raised its price target to 1,100 from 925 on the IBD Leaderboard and IBD 50 holding. BofA analyst Vivek Arya found Nvidia's "valuation and ownership attractive compared to semis/infotech peers."
The upgrade comes as the leader in artificial intelligence chips plans its GTC AI conference for developers next week. Nvidia has had a huge run, rising 77% year-to-date after its massive 2023 rally, when it gained 239%.
Super Micro Downgraded In Stock Market Today
Meanwhile, BofA analyst Ruplu Bhattacharya hiked his price target for Super Micro Computer from 1,040 to 1,280, but shares fell nearly 5%. Both Nvidia and Super Micro are testing their short-term moving averages. Super Micro holds a gain of 298% year to date.
Fund manager Cathie Wood's ARK Invest holding Robinhood surged more than 5%. Reports said the financial services company grew its assets under custody by 16% in February.
Meanwhile, Tesla fell 5% on the stock market today. Shares are extending a downtrend.
Earnings moved homebuilders and software stocks. Lennar fell more than 7% and pulled back below a buy point after its earnings report came out late Wednesday. The homebuilder missed sales views, according to FactSet, and gave a bearish outlook for the current quarter. Shares fell to the 50-day moving average on Thursday.
UiPath and SentinelOne fell below their 50-day moving averages in heavy volume, which is a sell signal. SentinelOne's sales and margins outlook came in below expectations.
Stocks Near Buy Points
A few stocks remained near buy points in proper bases in the stock market today. Neurocrine Biosciences remained near its buy point of 143.35, despite a 2.5% decline in today's trading. Royal Caribbean was close to a buy point of 133.77 in a cup base. The company is discussed in today's IBD 50 Stocks to Watch.
Finally, recent IBD Stock Of The Day and Leaderboard holding Dexcom slipped below a buy point of 132.03. There's no sell signal so far.
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