The major market indexes fell across the board Thursday morning, even as U.S. weekly jobless claims came in less than expected at 232,000 vs. the 240,000 estimate.
The tech-heavy Nasdaq fared the worst, falling 0.9%. The Dow Jones industrial average dropped 0.5% after earnings disappointments from two components. The S&P 500 moved 0.6% lower.
XAutoplay: On | Off Among the Dow industrials, McDonald’s (MCD) edged up just almost 0.1%. The stock is just off its 52-week high after finding support at its 50-day line last week.
On the downside, Cisco Systems (CSCO) plunged nearly 4%, as its fiscal-Q4 earnings met targets late Wednesday. Thursday’s action puts the stock back under its 50-day line, as the stock works to build a floor in a three-month consolidation.
Wal-Mart’s (WMT) dropped 2% after its Q2 results beat the Street’s views, but issued a cautious earnings outlook.
Retail behemoth Alibaba (BABA) was the star among leading stocks in the stock market today. The top Chinese stock jumped over 3% after the company reported strong earnings results. Shares found solid support at their 10-week line last Friday and are now about 60% above a 104.67 cup-with-handle entry.
Meanwhile, rival JD.com (JD) declined almost 4%, extending a losing streak to seven trading days. The retailer will look for more support at its 50-day line where it has found buying demand several times before.
Among other leading stocks, Tesla (TSLA) dropped 1.3%, as the stocks etches a handle onto its cup-shaped base. The potential handle entry comes in at 370.10.
Chip leader Applied Materials (AMAT) fell 1.2% ahead of its fiscal-Q3 earnings results after the market close. Analysts expect the chip-gear maker to earn 83 cents per share on revenues amounting to $3.66 billion. The stock is forming a cup-with-handle base with a 47.69 buy point.
Retailers were once again the target of sellers, using Wal-Mart’s weak guidance as a reason. Meanwhile, Victoria’s Secret-parent L Brands (LB) declined over 8% to five-year lows after the company cut its full-year earnings outlook late Thursday.
Within the IBD 50, Centene (CNC) rose just over 2%, as it continues to rebound from its 50-day line. The stock remains extended from a 73.33 cup-with-handle entry.
On the downside, Invisalign-maker Align Technology (ALGN) declined over 3%, but remains well-extended from a 102.10 cup-with-handle buy point.
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