The Dow Jones Industrial Average rose from session lows but was down 0.7% at the closing bell Thursday.
Signs of cooling inflation and hints of a slowdown in jobs growth raised concerns as the yield curve remained inverted. Walt Disney weighed the index down after it reported earnings. Walmart rose in the Dow, with earnings due next week.
The Inflation Reduction Act got attention in debt ceiling negotiations on Thursday, according to reports. Talks of spending cuts are underway to clear the deadlock for raising the debt ceiling.
According to a new study from the Federal Reserve Bank of New York, deposit withdrawals affected "super-regional" banks $50 billion to $250 billion in size the most. Community and smaller regional banks held steady in the recent bank run.
Elsewhere, the largest 113 lenders will replenish the $16 billion hit to the depositors' insurance fund, according to a proposal by the Federal Deposit Insurance Corporation (FDIC).
Big Tech Takes The Lead
Google parent Alphabet rose for a second day after its I/O 2023 conference. The Mountain View, Calif.-based company showed its ad strategy amid developments in generative AI. The company will also roll out a revamped AI capable search engine that will generate answers to open-ended queries. Rival AI play Microsoft fell slightly on Thursday.
Amazon added to recent gains. The e-commerce behemoth is on an eight-day winning streak and has cleared its 200-day line after an earlier test of the 50-day moving average.
Facebook parent and IBD Leaderboard stock Meta Platforms rose.
The S&P 500 fell 0.2% at 4 p.m. ET while the Nasdaq bucked the trend and rose 0.2%.
The small-cap Russell 2000 lagged with a 0.8% loss. The yield on the 10-year Treasury note fell 4 basis points to 3.39% amid signs of a slowing economy. The Innovator IBD 50 ETF fell 0.3%.
Volume on the NYSE and on the Nasdaq was lower compared to the same time on Wednesday.
Crude oil fell 2% to $71.14 per barrel.
In the Dow Jones, Disney fell in strong volume after reporting earnings. It lost subscribers for its Disney+ streaming service during the quarter. The stock has violated its 50-day line. Rival streaming company Netflix rose with a possible entry at 349.90.
Stocks Moving Outside Dow Jones
PacWest plunged in strong volume after the regional bank said it lost 9.5% of its deposits due to outflow last week.
Peloton dived after the fitness company recalled over 2 million bikes.
Allegro MicroSystems dumped despite a strong quarter and midpoint guidance.
Among Chinese plays, e-commerce stock JD.com rose after earnings. PDD Holdings and Alibaba rallied in sympathy. Baidu rose to test its 200-day line. All four are trading below their 50-day lines.
Futures: Market Struggles Outside Google; Tesla Pops On Elon Musk News
Stocks On Watch
Outside of the Dow Jones, Shockwave Medical broke out of a cup with handle at a buy point of 300.10 after strong earnings.
Flywire is in a buy zone after breaking out of a cup base at 28.56. Both SWAV and FLYW are on the IBD 50.
Weekly unemployment claims increased to 264,000, well above 247,000 expectations, according to a Bureau of Labor Statistics report. The producer price index (PPI) rose just 0.2% in April after a 0.4% decline in March. Services lifted 0.3%, the largest increase since November 2022. Goods rose 0.2% after falling 0.1% in March.
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