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The stock market closed largely lower on Thursday as technology, growth and small-cap stocks took a hit. The Nasdaq composite is now doing a test of support, as many leading stocks face their own struggles.
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Major stock indexes are cooling off after hitting record highs in recent days. The Nasdaq fell 0.7% and is now testing its 21-day exponential moving average. The line becomes the most immediate landmark of the stock market. A break below would suggest more ongoing sales.
Nvidia (NVDA), the seventh largest component of the Nasdaq, fell more than 4% in active trading. IBD Leaderboard stock fell below its 21-day line for the first time since breaking out to new highs in late May.
Biogen (BIIB) has sold nearly 7% on reports that two major hospitals refuse to administer Biogen’s controversial drug Aduhelm Alzheimer until questions about the drug are clarified. This is Biogen’s worst loss since November 9, when it fell 28%. On Thursday night, it was the second worst performance of the S&P 500 and the worst decline of the Nasdaq 100, according to Dow Jones Market Data.
The S&P 500 fell 0.3%. Volume was higher on the NYSE and Nasdaq, according to unconfirmed figures.
Dow outperforms the stock market
The Dow Jones Industrial Average rose nearly 0.2%. But the most notable action in the Dow Jones was the fall in stocks. Alliance of Walgreens boots (WBA) fell even further below its 200-day line. Chevron (CLC) fell to the lowest since April. Apple (AAPL) reversed slightly lower.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 34987.75 | +54.52 | +0.16 |
| S&P 500 | (0S & P5) | 4360.01 | -14.29 | -0.33 |
| Nasdaq | (0NDQC) | 14543.13 | -101.82 | -0.70 |
| Russel 2000 | (IWM) | 217.69 | -1.18 | -0.54 |
| MICI 50 | (FFTY) | 42.35 | -0.46 | -1.07 |
Last Modified: 4:16 PM ET 7/15/2021 |
||||
UnitedHealth Group (UNH), however, reversed higher after the health insurance company beat earnings expectations. The stock forms a cup base with a buy point of 426.08.
Small caps continued to weaken. The Russell 2000 fell 0.6%.
Growth stocks were also not in favor. IShares Russell 1000 Growth ETF (IWF) fell 0.6% after hitting a record high this week. The Innovator IBD 50 ETF (FFTY) fell 1.1% and hit its lowest close since January 6.
Much of the sale was in IPO stocks or relatively new stocks for the IBD 50. DLocal (DLO) fell nearly 6% after trying to erase an IPO base on Wednesday. Global-E online (GLBE) followed a bearish reversal on Wednesday with a 5% loss on Thursday. Figs (FIGS) is down about 9% this week.
Large technologies add to the weakness of the market; Musk says this about Cybertruck
Yields fall as the stock market falls
As stocks fell, bond prices rose. The yield on the 10-year Treasury bill, which moves opposite its price, fell 6 basis points to 1.29%.
Economically, investors grabbed the headlines. Federal Reserve Chairman Jerome Powell has said inflation is higher than the Fed wants it to be, but she still thinks it’s temporary. He indicated that the central bank will not change its monetary policy.
Unemployment benefit claims fell to a new pandemic low of 360,000 in the week ended July 10, from 386,000 adjusted a week earlier. Ongoing claims made through state programs fell from $ 126,000 to $ 3.24 million during the week ending July 3. This was the lowest level since March 2020, when the pandemic took hold in the United States and many other countries.
The first week of the results season is going badly. The Nasdaq is down 1.1% this week, and July’s gain has almost entirely disappeared. The S&P 500 is almost flat for the week.
Juan Carlos Arancibia is IBD’s Markets Editor and oversees our market coverage. Follow him on @IBD_jarancibia
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