Major stock market indexes were mixed in the first hour of trading Thursday, with the Nasdaq adding to recent losses. The Dow Jones Industrial Average pulled ahead despite Walgreens Boots Alliance’s (WBA) sell-off.
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The Dow crept up 0.4% while the S&P 500 edged higher 0.2%. The Nasdaq shed 0.2% in the stock market today.
Meanwhile, the small-cap Russell 2000 climbed 0.3%. The Invesco QQQ Trust (QQQ) inched lower 0.2%. And the Innovator IBD 50 ETF (FFTY) rallied 1.1%. The Russell 2000 bounced 0.4%.
Volume fell on the New York Stock Exchange and the Nasdaq vs. the same time on Wednesday. The 10-year Treasury yield added 7 basis points to 3.98% as the labor market showed some resilience.
The December Automated Data Processing private payrolls grew a surprising 164,000 vs. the 115,000 expected, according to Econoday. This topped the revised 101,000 jobs gains in November.
Initial jobless claims for the week ended Dec. 30, came in at 202,000 vs. the 217,500 consensus, and lower than the revised 220,000 in the prior week.
The final December Purchasing Managers’ Index came in at 50.9 vs. the 51.0 estimate and higher than the 50.7 November reading.
Stock Market Movers: Mobileye
Mobileye Global (MBLY) gapped down more than 20% in huge volume after the company gave preliminary fourth-quarter results and gave 2024 revenue guidance below analysts’ expectations.
The stock is on pace for its fifth straight day of losses. It has tumbled more than 37% since reaching a high of 44.48 on Dec. 28. The stock is deep below its 50- and 200-day moving averages, marking sell signals. The stock is on pace for its largest decrease on record, according to Dow Jones Market Data. The company makes technology for advanced driver-assistance systems and self-driving cars.
Dow Jones stock Walgreens Boots Alliance gapped down in heavy volume, even after the pharmacy company beat on its fiscal first-quarter earnings and sales expectations. But management cut its quarterly dividend by 48% to strengthen its cash position. The stock found support at its 50-day line. WBA stock is on track for its largest decrease since April 2, 2019, when it fell 12.8%. The stock is the biggest loser on the Dow and the S&P 500 Thursday.
Fellow Dow component Apple (AAPL) fell more than 1% after Piper Sandler downgraded the stock to neutral from overweight and cut its price target to 205 from 220. This follows a Barclays downgrade on Tuesday. Apple stock gapped down and undercut its 50-day line on Tuesday. AAPL is in its worst four-day losing streak since August, when it fell 6.8%, according to Dow Jones Market Data.
Other Stock Movers: Biotech Stock Soars
Omega Therapeutics (OMGA) gapped up more than 100% in extremely heavy volume, on news it entered into a research agreement with Novo Nordisk (NVO) on obesity treatments. The weight-loss drug stock reclaimed its 200-day line. NVO gained more than 3% in heavy trading and topped the 105.69 buy point of a flat base.
Lamb Weston (LW) rose after the potato and food processing company reported higher-than-expected adjusted earnings and revenue for its November quarter. The company also raised its fiscal 2024 adjusted earnings guidance and maintained its sales projection. Its fiscal year ends in May. The stock broke out of a cup-with-handle base and remains near the 108.56 buy point.
Conagra Brands (CAG) skidded following a beat on its fiscal second-quarter profit estimates and a miss on sales. It gave fiscal 2024 earnings guidance below analysts’ expectations. The stock is testing its 50-day line.
Simply Good Foods (SMPL) rose more than 5% following the company’s mixed fiscal first-quarter earnings report. It is in buy range from a 40.16 buy point.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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Source: investors.com
