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Investors Business Daily
Investors Business Daily

Dow Jones Falls Amid Walmart's Deflation Warning; Microsoft Up Again As It Joins Silicon Skirmishes

Major indexes closed mixed Thursday. The Dow Jones Industrial Average fell sharply in the morning but pared its loss to 0.1% by the close. Earnings from Cisco Systems and a cautionary outlook from Walmart weighed on the index.

Initial jobless claims for the week ended Nov. 11 came in at 231,000, higher than the expected 222,000, according to Econoday. The prior week's number was revised to 218,000 from 217,000.

The S&P 500 pared early losses and closed 0.1% higher in the stock market today. The Nasdaq also erased losses and ended slightly higher.

Volume on the NYSE and on the Nasdaq was lower, according to preliminary data. Decliners beat advancers by less than 2-1 on the NYSE and the Nasdaq.

The small-cap Russell 2000 suffered, however, and languished at the day's lows in the afternoon, falling 1.5% at the closing bell.

The Innovator IBD 50 did slightly better with a 0.5% loss. The ETF is back to a test of the 50-day moving average.

Crude oil took a huge dive, nearly 5%, and traded at $73.12 a barrel. Data shows that oil inventory is abundant amid fears of slowing global demand.

The yield on the benchmark 10-year Treasury note fell 9 basis points to 4.4%.

Dow Jones Stocks

Cisco remained 11.7% lower at the close of the trading day after the company indicated slowing order growth for the current quarter. First-quarter results came in above estimates. Shares were approaching the 50-day line within a base ahead of earnings but have dived and undercut their base.

Among Dow retailers, Walmart gapped below the 50-day moving average in heavy volume after beating views amid slowing growth. But the company's full year earnings outlook missed analysts' estimates. During the conference call, CEO Doug McMillon said that the company "may be managing through a period of deflation in the months to come."

Microsoft rose and remains in a buy zone from an entry at 366.78. The company announced Wednesday an AI accelerator chip to support its Azure OpenAI platform. It also introduced a general purpose Cobalt chip that uses Arm architecture.

Apple edged closer to a buy point of 198.23.

Stocks Moving Today

Shares of Alibaba fell 9% after the company said it did not intend to spin off its cloud business. Second quarter earnings of $2.16 per share beat consensus of $2.10. Shares gapped down below the 50-day moving average. Also among China plays, NetEase saw strong sales in its video games segment. The company beat earnings estimates while meeting sales views. Shares fell in early trades but pared back some losses at 4 p.m. ET.

Among cybersecurity names, Palo Alto Networks also fell below the 50-day moving average after beating views. Billings for the current quarter disappointed. Shares pared some losses but remained below the key level.

Outside of the Dow Jones, retailer Macy's gapped up over 5% after sales declined 7% while earnings fell 60%. But the company said leaner inventories helped improve margins by 110 basis points.

General Electric broke out of a flat base at 117.96. The relative strength line is at a new high. In home furnishings, Williams-Sonoma also broke out of a cup with handle with a buy point of 164.47. Volume was more than double its average.

Stocks To Watch

Among stocks to watch, Google parent Alphabet is nearing a buy point of 141.22 in a flat base after it regained the 50-day moving average.

IBD Leaderboard stock D.R. Horton is pulling back slightly in a cup base with a buy point of 132.30. Watch for a handle to form.

Warren Buffett's Berkshire Hathaway remains above the 50-day moving average. Shares have been rebounding since the company announced earnings Nov. 4, and its stock is in a cup base with a buy point of 373.34.

In the Dow Jones industrials, Salesforce is in a double-bottom base with a buy point of 228.79.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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