The Dow Jones Industrial Average and other major stock indexes finished lower Thursday, with their third consecutive loss arriving on slimmer odds of interest-rate cuts following better-than-expected economic data. Oracle and Tesla were among those that fell on the stock market today, but IBM was a standout in blue chips.
The Dow fell 0.4% on Thursday, but IBM's 5.2% gain helped the index come off session lows.
The S&P 500 dropped 0.5%, but it had declined as much as 1% during the session. The benchmark's overall uptrend in the stock market today remains intact. The index also finished just above its 21-day moving average.
The Nasdaq also lost 0.5% and finished at its 10-day moving average. Meanwhile, small caps were hit, dragging the Russell 2000 index down 1%.
Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Thursday. Decliners outnumbered advancers by around 3-to-1 on both exchanges.
The yield on the 10-year Treasury note rose to 4.17%. Crude oil rose to around $65 a barrel.
3:41 p.m. ET
10 Sectors, Five Stocks Weigh On S&P 500
Winners in the benchmark index included Intel, Albemarle and IBM.
CarMax, Jabil and Tapestry, Freeport-McMoRan and Oracle weighed on it with losses of more than 5% each.
Among its sectors, energy was the sole gainer. Consumer discretionary and health fell more than 1%.
Small caps in the Russell 2000 sank 0.9%.
2:27 p.m. ET
Stock Market Today: Earnings Movers
Accenture slid after its outlook of 3% sales growth for fiscal 2025 missed analysts' target of 5% growth. Late Wednesday, the IT consulting firm posted fourth-quarter results that beat expectations. Earnings of $3.03 per share were above views of $2.98, and revenue of $17.6 billion came in above estimates of $17.4 billion. Shares have been in a downtrend since July and fell more than 2% on Thursday.
Jabil triggered a sell signal after its earnings report. Earnings of $3.29 per share grew 43% while sales of $8.3 billion increased 18% from the prior year. For the current quarter, the company guided earnings of $2.67 per share at the midpoint on sales of $8 billion. Shares of the electronics contract manufacturer had rallied to their all-time high on Tuesday and undercut their 50-day moving average in higher volume Thursday. The stock also fell more than 7% below a buy point of 232.84 and triggered the 7% sell rule.
KB Home reported a decline in both earnings and sales. Earnings fell 21% to $1.61 per share while sales of $1.6 billion decreased 8% from the prior year. Shares logged a gain of less than 1%.
Is Pullback Over? It's Not Clear Yet. 5 Stocks Near Buy Points.
1:23 p.m. ET
Nvidia Reverses Higher
Aiding Thursday's index moves was Nvidia as the stock moved into positive territory. Shares at one point rose 1.8% after earlier falling below their 50-day moving average. The AI supercomputer and chip set innovator has formed a new base with a 184.48 buy point. The 86 Relative Strength Rating is solid on a scale of 1 to 99, meaning Nvidia has outperformed 86% of the entire IBD stock database over the past 12 months.
Nasdaq: Still Resilient
The tech-heavy Nasdaq composite's loss was further shaved to 0.2% after an early decline of more than 1%. The majority of megacap tech leaders remained in the red. Stocks opened lower after better-than-expected GDP data and weekly jobless claims prompted Wall Street to trim bets on future interest-rate cuts.
As this Wednesday Big Picture notes, the current outlook stays at 80%-100% recommended exposure in the stock market amid a mild level of distribution. Be sure to read the daily column for any changes to this outlook.
Small caps were hurt Thursday, with the Russell 2000 down 0.9%. But it had fallen more than 1.6% in the early going. At 2,407, the Russell still holds a solid gain of 10.7% for the third quarter.
IBM's New Base
IBM jumped on news that it's collaborating with HSBC Bank to incorporate quantum computing technology into the global lending institution's operations.
The stock had fallen sharply in July to early August before bottoming out at 233.36. Such action clearly defined the left side of an emerging base. Bullishly, IBM rallied back above the long-term and still-rising 200-day moving average on Sept. 8. Then last week, shares hoisted back above the 50-day line, another bullish technical move.
Trading near 283, IBM now stands just 4% beneath the emerging cup's left-side peak of 296.16.
Watch for a potential handle to form on the base. That would signify a final shakeout of uncommitted shareholders itching to exit the stock with a small loss or to break even.
Wall Street sees Big Blue growing its earnings 8% this year to $11.17 a share. In the second quarter profit rose 15%, the highest year-over-year increase in five quarters.
12:18 p.m. ET
Stock Market Today: Watch Leaders Backtrack
Some highly rated companies tested key pivot points.
For example, consider Argan. The heavy construction firm swooned as much as 4% during morning trading before slicing that loss to around 2.2%. It traded as low as 240.24, falling as much as 5% below a new buy point of 253.79 in a six-week base.
That was not big enough a drop to warrant a full exit of the position based on the 7% loss-cutting sell rule. However, Argan's move reflected a penchant among institutions to sell into stock market rallies.
Argan, in the meantime, received favorable buying support at the rising 21-day exponential moving average near 241. And it holds a nice cushion above the 50-day moving average. The small cap growth stock has an enviable 97 Composite Rating. Earnings in the July quarter zoomed 91% higher despite only a 5% revenue gain to $238 million.
Jacobs Solutions, also in the same heavy construction industry group as Argan, fell mildly in its third straight decline, but shares also tested support at the 50-day moving average. Jacobs recently cleared a 144.49 pivot point in a long cup with handle. It gained more than 5% before the stock's recent pullback and is now testing that 144.49 entry.
Jacobs got some airtime on the Thursday edition of IBD Live on Zoom.
11:01 a.m. ET
The 10-year Treasury yield rose three basis points to 4.18%. Oil prices dived more than 1.2% as West Texas intermediate futures traded around $64.19 a barrel.
Gold futures crept lower, but buyers hunted for metal plays in the stock market today.
Metal Miners Up, Oklo Gaps Down
Inside the MarketSurge Growth 250, winners included Idaho Strategic Resources, SSR Mining and Coeur Mining. All three metal plays are far extended past recent breakout points.
On the downside, nuclear energy startup Oklo sank more than 9% and hit a low of 110.14. The company is developing smaller nuclear reactors to satisfy the energy needs of data centers but has no sales. The company is expected to begin generating revenue in the fourth quarter of 2027.
Oklo recently jumped off the 50-day moving average near 68 and more than doubled in less than three weeks, but the rally went vertical, an unsustainable move.
After a good breakout from a sound base, the first and second tests of the 50-day line offer follow-on entry points. On a weekly chart, the 10-week moving average also serves as a useful tool to buy additional shares during a great stock's breakout and subsequent rally.
9:55 a.m. ET
Oracle Stock Tumbles
Hot artificial intelligence stock Oracle tumbled nearly 6% at the market open Thursday. Shares are pulling back following their 36% surge on Sept. 10 after the company's fiscal first-quarter results. The Austin, Texas-based tech giant offered eye-popping projections for its future revenue growth.
On Wednesday, Bloomberg reported that Oracle will look to raise $15 billion through the bond market to fund its AI cloud ambitions.
8:56 a.m. ET
Dow Jones Movers: Amazon, Caterpillar, IBM
Inside the blue chip index, Caterpillar, Microsoft and Salesforce were among the biggest decliners in premarket trading.
Caterpillar shares declined 1.6%, while Microsoft stock lost 0.5%. Salesforce shares 1.1%.
On the upside, Amazon and IBM traded higher, shrugging off the stock market losses. Amazon stock moved up 0.2%, looking to snap a three-day losing streak, while IBM rallied 1.5%.
8:47 a.m. ET
Stock Market Today: Tesla Stock Sells Off
Tesla stock skidded more than 2% premarket Thursday, threatening to give back a large part of Wednesday's 4% rally.
Shares are extended above a 367.71 buy point and closed Wednesday at their highest level since December.
8:37 a.m. ET
Stock Market Today: Surprise GDP Revision, Jobless Claims Fall
Early Thursday, the Commerce Department unexpectedly revised its second-quarter GDP growth from 3.3% to 3.8%. It was expected to show no change from the last report's 3.3% estimate.
Meanwhile, the Labor Department's weekly jobless claims fell to 218,000 vs. 231,000 in the previous week. They were expected to rise to 238,000, per Econoday.
8:20 a.m. ET
Nvidia Stock Extends Losses
Nvidia stock declined 1% premarket Thursday, on pace to extend its losing streak to three sessions. Following Monday's bullish move, the stock has fallen sharply in the two ensuing sessions, closing just above the 50-day moving average, a key support level to watch.
Shares are about 4% away from a 184.48 flat-base entry and back below an early trendline buy trigger.
Earnings Movers: CarMax, Jabil, KB Home
Key earnings movers Thursday morning were CarMax, Jabil and KB Home.
CarMax stock plunged 12% after the company reported weaker-than-expected fiscal second quarter earnings and sales results. "While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that have built," said Chief Executive Bill Nash in the press release.
Meanwhile, Jabil shares sold off 2.6% premarket, and KB Home stock moved down 0.6% in early trading.
Stock Market Today: GDP, Jobless Claims
Due out at 8:30 a.m. ET, the Commerce Department's final reading of second-quarter GDP growth is expected to show no change from the last report's 3.3% estimate.
Meanwhile, the Labor Department's weekly jobless claims are also set for 8:30 a.m. ET. Claims are seen rising to 238,000 vs. 231,000 in the previous week.
Finally, the National Association of Realtors' existing home sales are expected to ease to a 3.95 million rate in August vs. 4.01 million in July. Sales are set for 10 a.m. ET.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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