Stocks were mixed on Thursday morning, with the Dow Jones Industrial Average rising, the S&P 500 falling and the Nasdaq shedding much of its gains from the previous day. Investors remained cautious on the stock market today, despite news that the June Consumer Price Index showed inflation was heading in the right direction.
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The Dow rose 0.1%, leading the three major indexes. The Nasdaq weakened, slumping 1%, while the S&P 500 dropped 0.4%. The latter two indexes hit new record highs on Wednesday, extending their streak of all-time high closes to seven sessions. The Nasdaq rose 1.2% on Wednesday, but Thursday’s decline threatened to erase all of those gains.
Meanwhile, the Russell 2000 index of small-cap stocks fared better, rising 2.9%. Trading volume on both the Nasdaq and the New York Stock Exchange rose.
The Innovator IBD 50 (FFTY) exchange-traded fund is up in the stock market today, remaining above its 21-day and 50-day moving averages.
In the bond market, the yield on the 10-year Treasury note fell 11 basis points to 4.19%, while the price of U.S. crude oil fell below $82 a barrel.
June CPI shows inflation slowing
The Labor Department’s Consumer Price Index fell 0.1% in June, reversing an expected 0.1% increase. This was the first monthly decline since May 2020.
Meanwhile, year-over-year growth in June rose 3.0%, below the expected 3.1% increase. The core index, which excludes volatile food and energy items, rose 0.1% in June compared with the expected 0.2% increase. Finally, the core index rose 3.3% year-over-year in June, below the expected 3.5% increase.
The Labor Department also reported that initial claims for unemployment insurance for the week ended July 6 were 222,000, below the expected 239,000 and below the revised figure of 239,000 from the previous week.
Stock market today: Airline stocks plummet
Delta Airlines (DAL) shares plunged more than 6% after the company reported second-quarter profit that fell short of expectations and revenue that beat expectations. Profit fell 11.9% from the same period last year. Investors, however, focused on the company’s third-quarter profit outlook, which fell short of analysts’ predictions.
Delta shares dipped further below their 50-day moving average and found support at their 200-day line, as well as below the bottom of an emerging flat base. Delta shares are headed for their biggest drop since a 9% drop on Jan. 12, according to Dow Jones Market Data.
United Airlines United Airlines (UAL) fell nearly 5%, in line with rival Delta Air Lines. United’s stock chart resembles Delta’s, with the stock dropping further below its 50-day line and stalling just short of its 200-day line. United reports second-quarter earnings after the market closes on Wednesday.
American Airlines Group (AAL) plunged more than 5%. The company’s shares are charting as the weakest of the big three airlines, dropping more than 22% so far this year, and on May 29, they plunged 13.5% after the company lowered its second-quarter profit forecast.
Stock Trends: WD-40 Rising
WD-40 Shares of specialty lubricants maker WDFC rose more than 3% on the stock market today after the company beat expectations for third-quarter profit and sales.
Costco Wholesale (COST) fell 3% on news that it will raise annual membership fees by $5 to $65 per year, the first fee increase since 2017. Shares of the warehouse wholesale club are trading up from a cup base with a buy point of 787.08.
PepsiCo Shares of PEP, a beverage and packaged food company, fell nearly 1% after the company reported better-than-expected second-quarter adjusted profit but weaker-than-expected sales. The stock is below its 200-day moving average and has fallen 5% so far this year.
Pfizer (PFE) pared a big gain to 0.4% in recent trading on the stock market today. Shares rose on news that the pharmaceutical company announced it had chosen a once-daily pill to move forward as a weight loss drug. The stock re-excelled above its 200-day line with the move, but has recently underperformed expectations and has a lackluster Relative Strength Rating of 28.
Stock market today: Seven major stocks in the mix
Meanwhile, IBD 50 and Leaderboard Stocks NVIDIA NVDA fell nearly 3% after three straight days of gains. The stock has mostly recovered from a brief but sharp sell-off in late June and is back near the all-time high it reached on June 20.
The Magnificent Seven, Tesla (TSLA) rose nearly 2%, on track to be its 12th consecutive day of gains.
apple (AAPL) fell about 2% after hitting an all-time high on Wednesday after seven straight days of gains. As noted in Wednesday’s The Big Picture column, Apple became the first stock to reach a market cap above $3.5 trillion.
For more stock market news, follow Kimberley Koenig on X/Twitter. translator.
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