April 24, 2024

Stocks remained lethargic but major indexes started to summon mild interest in afternoon trading Thursday ahead of the Good Friday holiday. Home Depot (HD) and Apple (AAPL) dragged on the Dow Jones Industrial Average, while chemical and Teflon maker Chemours (CC) slid on the stock market today.




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The Dow managed to work up a 0.3% gain, while the tech-heavy Nasdaq edged up slightly. The S&P 500 gained 0.3% after a record closing high on Wednesday. Small caps on the Russell 2000 were the clear leaders as that index climbed 0.5%.

Volume fell on the New York Stock Exchange and rose on the Nasdaq vs. the same time Wednesday. Investors looked ahead to a long weekend, with the stock market closed on Good Friday.

In Thursday’s action, the Invesco QQQ Trust (QQQ) exchange traded was relatively unchanged, while the Innovator IBD 50 ETF (FFTY) skidded 0.3%. The 10-year Treasury yield added 1 basis point to 4.21%. And West Texas intermediate crude oil climbed more than 2% to surge past $83 a barrel.

In economic news, the Commerce Department’s final fourth-quarter GDP reading was increased to 3.4% vs. the 3.2% consensus on an annual rate, indicating the economy remains hearty. Also, the department’s closely watched Personal Consumption Expenditures index rose 3.3% vs. the 3% projected.

Initial weekly jobless claims for the week ended March 23 of 210,000 tallied lower than the 213,000 expected, showing the jobs market is also robust.

Stock Market Today: Teflon Maker Slides, Palantir Plummets

Teflon maker Chemours eased from earlier larger losses but still tumbled around 9% in recent trades. The company reported fourth-quarter profit and sales that topped estimates on Wednesday, but investors focused on its accounting issues instead.

Shares skidded 31.5% on Feb. 29, after the chemical maker announced it was putting top executives on leave and postponing its financial audited filings amid an internal investigation into its accounting practices. Chemours said in its annual report dated March 28, that it’s cooperating with the Securities and Exchange Commission and the U.S. Attorney’s Office as they investigate the company’s accounting review.

Dow Jones component Home Depot slid 0.5% after the home-improvement retailer announced it’s acquiring SRS Distribution, which sells roofing materials and building products, for about $18.25 billion. Home Depot stock is extended from a cup-with-handle base with a 334.97 buy point. It reached a 52-week high of 396.87 on March 22.

Fellow Dow stock Apple sank nearly 1% after DZ Bank downgraded the iPhone maker’s stock to hold from buy. The bank also cut its price target to 180 from 210. Apple stock was the worst performer on the Dow on Thursday while Home Depot was second worst.

RH Stock Rockets

Outside the Dow, Palantir Technologies (PLTR) stock tumbled more than 5% after brokerage Monness, Crespi, Hardt downgraded shares to sell from neutral and gave shares a price target of 20. Shares of the IBD 50 stock are currently trading around 23. The stock sank below its 21-day exponential moving average on Thursday in lighter-than-average daily volume.

MillerKnoll (MLKN) plummeted 19% after the office furniture maker reported better-than-expected earnings for its fiscal third quarter but sales came in below views. It also provided a fiscal fourth-quarter outlook with adjusted earnings and sales coming in below estimates. The gap down below its 50-day line triggered a sell signal on the stock market today.

Further, RH (RH) soared more than 18% even after the upscale home furnishings retailer reported a miss on its fiscal fourth quarter adjusted earnings and sales. Investors focused on the company’s current quarter outlook for revenue growth in the low single-digits. RH sees full-year sales growth of 8% to 10% for fiscal 2024.

Cruise Line Stock Reverses

Carnival (CCL) tumbled and tested its 21-day line on the stock market today. The cruise line operator reported a smaller-than-expected loss for its fiscal first quarter, but sales came in below views Wednesday.

Estee Lauder (EL) jumped 6% after Bank of America Securities upgraded the skin care and cosmetics stock to buy from neutral and raised its price target to 170 from 160. Shares are in an early stage flat base with a 159.75 buy point.

The stock reclaimed its 21-day line and found resistance at its 200-day moving average. Investors may note that its fundamentals are weak. It reported seven straight quarters of declining earnings, six of those with sales drops. In addition, Estee Lauder’s IBD Composite and Earnings Per Share Ratings are a dismal 13.

Braze (BRZE) gapped down 13% in heavy volume sending the stock further below its 50-day line and undercutting its 200-day line, triggering a sell signal. The customer engagement platform operator reported a larger-than-expected fiscal fourth quarter loss and topped sales views. The dark cloud came as it forecast a larger current-quarter and fiscal 2025 loss than analysts had projected.

And among Magnificent Seven stocks, Tesla (TSLA) trimmed 2% while Leaderboard stock Nvidia (NVDA) added 0.4% on the stock market today.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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Source: investors.com

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