Major stock indexes were all lower in afternoon trades Thursday as the Dow Jones Industrial Average reversed from morning gains and surrendered all its winnings from the prior session. Meanwhile, the sell-off continued for the S&P 500 and Nasdaq on the stock market today, led by a number of technology sectors.
↑
X
Retain Your Gains: Finding Exactly How Much You Can Let A Multiyear Stock Run
The Dow Jones index was down 0.7% in recent action, giving back all of Wednesday’s 243-point gain and then some, thus retreating from its record high close. The S&P 500 selling picked up and that index dropped 0.5%.
Meanwhile, the Nasdaq composite’s losses continue to mount as the index slid 0.6% Thursday afternoon but pared heavier losses. On Wednesday, the Nasdaq racked up its worst one-day percentage loss since December 2022. The tech-heavy index also closed below its 21-day exponential moving average on Wednesday and fell further below it Thursday.
The small-cap Russell 2000 reversed lower and sank 0.8%.
Declining stocks on the Nasdaq stock exchange outpaced rising issues by around 2-to-1. New York Stock Exchange decliners outpaced rising stocks by roughly 3-to-2. Further, volume was lower on both the Nasdaq and NYSE vs. the same time Wednesday.
In bonds, the 10-year Treasury yield rose to 4.18%. And U.S. crude oil prices increased to around $83.30 a barrel.
Stock Market Today: Tech Sell-Off Gains Momentum
Technology stocks continued to plunge en masse Thursday, continuing nearly a week’s worth of losses. Ten tech industry groups ranked in the bottom 30 of Investor’s Business Daily’s 197 groups.
One of those leading the charge in futility was the Computer-Data Storage group, which collectively was losing 2.2% in recent action. That’s on top of a 5.6% plunge the group incurred in Wednesday’s bloodbath. Data storage stocks are down nearly 9% from Friday’s close.
The group includes Micron Technology (MU), which fell 2%, 2.6% and 6.3% Monday through Wednesday, and was off 3% Thursday. Micron seems to have taken the hardest shots, but the charts of rival storage companies Western Digital (WDC), Seagate Technology (STX) and Pure Storage (PSTG) all have similar stories to tell.
Other tech groups struggling were Computer Software-Design, Computer-Hardware/Peripherals and Computer Software-Database. Another was the Electronics-Semiconductor Equipment, or chip gear makers.
These Sectors Lead Charge Upward
On the other side of the coin, the leading industry group in recent trades was the Commercial Services-Outsourcing group, which managed a gain of 2.5%.
The market-cap leader in that group, Automatic Data (ADP), is on a six-day winning streak and building the right side of a flat base with a 256.57 buy point.
Another commercial services player is uniform provider Cintas (CTAS), which lingered in a buy zone for a month before bursting through it Thursday with a gain of more than 5%. Cintas, a regular visitor to the IBD 50, beat May-quarter expectations early today.
Other sectors charging upward include Beverages-Non-Alcoholic, Building-Residential/Commercial, Auto Manufacturers and Oil & Gas-International Exploration and Production.
A Couple Of Sell Signals To Watch
Amid the sell-off, two stocks in particular sounded the alarm for bears.
One sell signal came from Camtek (CAMT), which fell below its 50-day moving average with another loss of nearly 3% in recent action Thursday. Camtek had been charging higher until this week’s crash, in which it has lost more than 15%.
Another was Veeco Instruments (VECO), which plunged 5% Thursday. Veeco pierced the 50-day line on Wednesday after plummeting nearly 9%.
Both stocks are heading back toward their buy zones after substantial moves above them in recent weeks.
Updated 12:25 p.m. ET
Stock Market Today: Infosys Surges
Infosys (INFY) bolted more than 8% in heavy volume out of a long saucer base with a 20.74 buy point. But a more appropriate entry was around 22.60 based on the high on the first five-minute price bar, bringing the 5% buy zone up to 23.73. The India-based software company topped analysts’ fiscal first-quarter profit and sales estimates.
IBD SwingTrader stock Blackstone (BX) gave back some gains but still was up 1.2% in recent action. The move came despite the world’s largest asset manager reporting lower second-quarter earnings vs. the prior year’s quarter.
Its assets under management increased to $1.08 trillion from $1 trillion a year ago. Shares are in the buy zone up to 140.24 of an early stage flat base with a 133.56 buy point.
Insurance stock Allstate (ALL) powered up 4.8% and broke out of a cup base with a 177.37 entry point. Shares reached a new high on the stock market today.
Dow Jones stock Caterpillar (CAT) trimmed larger gains to…
Read More: Stock Market Today: Dow Jones, S&P 500 And Nasdaq Sell-Off; Blackstone Rallies