Stocks were mixed Thursday morning as the Dow Jones Industrial Average managed a gain, the S&P 500 slipped and the Nasdaq gave back much of its gains from the day before. Despite news that June Consumer Price Index readings show inflation is heading in the right direction investors appeared tentative on the stock market today.
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This Indicator Can Signal When A Stock May Be Running Out Of Gas
The Dow rose 0.1%, leading the three major indexes. The Nasdaq weakened and plunged 1% while the S&P 500 pulled back 0.4%. The latter two indexes hit record highs Wednesday and extended their streak of record closing highs to seven sessions. The Nasdaq jumped 1.2% Wednesday but threatened to erase all of that with Thursday’s losses.
Meanwhile, the small-cap Russell 2000 outperformed and climbed 2.9%. Volume was higher on the Nasdaq and higher on the New York Stock Exchange.
The Innovator IBD 50 (FFTY) exchange traded fund ticked higher on the stock market today. It remains above its 21-day line and its 50-day moving average.
In bonds, the 10-year Treasury yield dropped eleven basis points to 4.19%. And U.S. crude oil prices fell below $82 a barrel.
June CPI Reading Shows Cooling Inflation
The Labor Department’s June Consumer Price Index dropped 0.1%, reversing from an expected increase of 0.1%. This marks the first monthly decline since May 2020.
Meanwhile, the June year-over-year reading rose 3.0%, lower than the 3.1% projected gain. The June month-over-month core number, which excludes the more volatile food and energy components, rose 0.1% vs. an estimated 0.2%. Lastly, the June core annual rate came in at 3.3%, lagging the 3.5% forecast.
The Labor Department also said initial jobless claims for the week ended July 6, were 222,000. That came in lower than the 239,000 estimate and below the revised 239,000 from the prior week.
Stock Market Today: Airline Stocks Plunge
Delta Air Lines (DAL) dropped more than 6% in huge volume after the company reported lower-than-expected second-quarter earnings and higher sales than views. Earnings dropped 11.9% vs. the prior year’s quarter. But investors clued in on its third-quarter profit outlook which was below analyst projections.
The airline stock fell further below its 50-day moving average and found support at its 200-day line. It also dropped below the bottom of the flat base it was forming. Delta stock is on track for its largest decrease since Jan. 12, when it fell 9%, according to Dow Jones Market Data.
United Airlines (UAL) sank nearly 5% in sympathy with rival Delta Air Lines. United’s stock chart looks similar to Delta’s as the stock sank deeper below its 50-day line and stopped short of its 200-day line. United reports its second-quarter earnings on Wednesday after the market close.
American Airlines Group (AAL) plunged more than 5%. The stock has the weakest-looking chart of the big three airlines and more than 22% so far this year. It plunged 13.5% on May 29, after the company lowered its second-quarter earnings estimates.
Stock Movers: WD-40 Glides Higher
WD-40 (WDFC) jumped more than 3% on the stock market today after the specialty lubricant’s company topped fiscal third-quarter profit and revenue estimates.
Costco Wholesale (COST) reversed 3% lower following news it will raise its annual membership fee by $5 to $65 a year. This is its first membership fee hike since 2017. The warehouse wholesale club stock is extended from a cup base with a 787.08 buy point.
PepsiCo (PEP) tumbled nearly 1% after the beverage and packaged food company beat second-quarter adjusted earnings but missed revenue estimates. Shares are below their 200-day line and have lost 5% so far this year.
Pfizer (PFE) trimmed larger gains to 0.4% in recent trades on the stock market today. The stock got a lift on news the drugmaker said it selected a once-daily pill to move forward as a potential weight-loss drug. The stock retook its 200-day line on the move but has underperformed of late and has a dismal Relative Strength Rating of 28.
Stock Market Today: Magnificent Seven Stocks Mixed
Meanwhile, IBD 50 and Leaderboard stock Nvidia (NVDA) retreated nearly 3% after three straight days of climbing. The stock has nearly recovered from a brief yet sharp sell-off in late June and is back near its record high set on June 20.
Fellow Magnificent Seven stock, Tesla (TSLA), jumped nearly 2% and is on pace for a 12th straight day of gains.
Apple (AAPL) pulled back nearly 2% after reaching an all-time high on Wednesday, following a rally of seven straight days. Apple was the first stock to top a market capitalization of $3.5 trillion, as noted in Wednesday’s The Big Picture column.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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