The S&P 500 came within inches of a record high Thursday, but had to settle for a minute gain as the stock market faded and small caps broke a trend of outperformance.
The S&P 500 climbed less than 0.1%. Its Thursday high of 4,793 barely missed the current record high of 4,818, reached nearly two years ago.
The Nasdaq composite closed fractionally lower after erasing modest gains. The Nasdaq's 6.1% increase so far this month would make it its best December since 1999, when it gained 22%.
The Innovator IBD 50 ETF, a proxy for growth stocks, fell 1%. Most of the 50 stocks in the fund moved less than 1%, but GigaCloud Technology reversed lower and closed with a 1.2% loss. Oil field services provider Tidewater tumbled 3.8% and closed just below the 73.55 buy point of Tuesday's breakout.
The Dow Jones Industrial Average rose 0.1%, adding to its streak of record highs.
3 Dow Stocks Test Buy Points
Three Dow components tested buy points on Thursday's stock market. Amgen is trying to break out past a 288.46 entry, while McDonald's is trying to clear a 295.97 handle buy point. And Goldman Sachs is poking above a 386.20 handle buy point. All three, however, suffered from weak volume.
Meanwhile, fellow Dow component Merck climbed back above its 200-day moving average for the first time since Sept. 1. Apple climbed only 0.2% but it was a significant move because it showed the Dow stock is getting some support at its 21-day exponential moving average.
Small caps underperformed, with the Russell 2000 down 0.4% in the stock market today. The Russell has surged more than 20% since the week ended Nov. 10, more than doubling the Nasdaq's gain of about 10% in the same period and the S&P's advance of more than 8%.
Thus, a pullback or moderation in the small-cap rally should come as no surprise. This month, the Russell 2000 is on pace to outperform the S&P 500 by its largest margin in any month since February 2000, according to Dow Jones Market Data. The Russell is also having its best December on record.
Volume fell on the New York Stock Exchange and slid on the Nasdaq from Wednesday's levels, according to unconfirmed data. Declining stocks slightly outnumbered advancing stocks on both exchanges.
The major stock market indexes rose despite a bounce in the 10-year Treasury note, which rose 7 basis points to 3.85%. Although there was economic data out earlier Thursday, the bond market may be reacting to a poorly received sale of 7-year notes.
Futures: Tesla Falls Below Buy Point; Hot IPO Hits Profit-Taking Zone
Marathon, NeoGenomics Among Stock Market Losers
Small-cap Grand Canyon Education slid more than 6% in heavy trading and closed just below its 50-day moving average. The Federal Trade Commission sued the operator of Christian university Grand Canyon University, accusing it of deceptive marketing practices. The company denied the charges, and accused the Biden administration of "weaponizing federal government agencies in a coordinated effort to target institutions to which they are ideologically opposed."
Marathon Digital slid more than 9% in heavy trading. The stock appears to be cooling off after more than tripling in price the past 5-1/2 weeks. The stock had climbed more than 50% above its 50-day moving average, a level that has marked peaks for the cryptocurrency stock in the past, as IBD cautioned.
NeoGenomics gapped down sharply in heavy trading Thursday, losing more than 18%. The stock is 16% below its 19.78 buy point, which is a sell signal. The oncology testing services company also is piercing its 50-day moving average, another likely sell signal.
A federal court Wednesday issued a preliminary injunction against the company involving a patent court case with Natera. NeoGenomics said Thursday it will appeal. Natera shares were up 1.3%.
SQM climbed 1.6% but met resistance on the stock market at its downward-trending 200-day moving average. The Chile-based lithium and fertilizers producer is more than 35% below its 52-week high amid slumping sales and earnings. The company and the National Copper Corporation of Chile, or Codelco, have formed a partnership to develop lithium in the northern part of Chile.
