The Dow Jones Industrial Average and other major indexes weakened in the final hour of trading Thursday and failed to mount a significant recovery after Wednesday’s massive sell-off. Bitcoin stocks sank on the stock market today along with the price of bitcoin. But Nvidia (NVDA) stock managed to show some dominance and climbed higher.
The Dow Jones index barely finished ahead and ended its 10-day losing streak with a fractional gain following Wednesday’s 2.6% drop. Blue chips still sit firmly below their 50-day moving average.
The benchmark S&P 500, however, ended up marginally lower, giving back all its gains from earlier in the session. The S&P fell 3% Wednesday and undercut its 50-day line.
The Nasdaq composite reversed and ended up 0.1% lower after losing 3.5% in the prior session. The tech-heavy index is now just under its 21-day exponential moving average but above its 50-day line.
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How To Listen For Sell Signals And When To Stick To Your Hold Rules
Small caps on the Russell 2000 finished 0.3% lower, adding to Wednesday’s 4.4% loss. The index is 4% below its 50-day line.
Volume was lower on both the New York Stock Exchange and Nasdaq vs. the same time Wednesday.
On the Nasdaq exchange, falling stocks topped rising issues by roughly 5-to-4, while on the New York Stock Exchange, losers beat gainers around 2-to-1.
Bitcoin retreated 4.5% to just under the $96,900 level. The 10-year Treasury yield added seven basis points to 4.57%. And U.S. crude oil fell around 1% to $69.85 a barrel.
Stock Market Today: AI Stock Ends Rally
SoundHound AI (SOUN) reversed 9.6% lower in heavy volume after reaching a record high Wednesday. The stock has had an explosive run since it bounced off its 10-week moving average in early November. SoundHound develops voice artificial intelligence used by the restaurant and healthcare industries.
Dow Jones stock Nike (NKE) rose 0.3% ahead of its fiscal second-quarter earnings report due out after the market close.
And Tesla (TSLA) ended up losing nearly 1% on top of an 8.3% deficit Wednesday. The electric-vehicle maker earlier was 2% higher before surrendering its gains.
3:23 p.m. ET
Bitcoin Stocks
Bitcoin’s sharp drop Thursday afternoon pulled down some cryptocurrency and related stocks, including IBD 50 names Hut 8 (HUT) and Coinbase Global (COIN).
Hut 8 tumbled nearly 9%, as shares of the crypto mining stock further deteriorated following Wednesday’s 11.8% decline. Hut 8 undercut its 21-day line after closing just below it Wednesday.
Coinbase stock lost more than 2% and is on track for three straight days of selling. Similarly, the bitcoin stock is deep beneath its 21-day line but remains above its 50-day line for now.
MicroStrategy (MSTR) ceded more than 6% and is on track for its fourth straight day of losses. The company is the largest corporate holder of bitcoin. Shares are around 11.3% below their 21-day line and are heading toward the 50-day line.
In other news, Nvidia stock advanced nearly 2% after five straight days of losses, but the artificial intelligence leader remains under its 50-day and 21-day lines. The Dow Jones component has fallen more than 7% below its 140.76 buy point from an irregular base, and recently triggered a sell rule.
1:53 p.m. ET
Stock Market Today: AI Stock Tanks, Homebuilders Fall
C3.ai (AI) skidded in heavy trading, adding to Wednesday’s 7.4% loss. The plunge came after KeyBanc downgraded the stock to underweight from sector weight and set a price target of 29. The AI service provider undercut its 21-day line but stopped short of its 50-day line.
Conversely, Oklo (OKLO) soared on news Wedbush began coverage on the nuclear power company with an outperform rating and a 26 price target.
Cintas (CTAS) slid sharply, falling further below its 50-day line and slicing through its 200-day line. The move came following the company’s disappointing revenue outlook. The uniform rental provider is on pace for its largest drop since March 23, 2020, when it fell 10.3%.
Many homebuilder stocks continue to sell off and are in their third straight week of losses. Selling picked up in the industry after the Fed trimmed its forecast for rate cuts next year.
Lennar (LEN) slid more than 5% on the stock market today, after the homebuilder missed fiscal fourth-quarter adjusted earnings and revenue estimates.
Rival Toll Brothers (TOL) lost ground, while PulteGroup (PHM) dropped and M/I Homes (MHO) fell.
12:31 p.m. ET
Manufacturing Index Weakens; Palantir Climbs
In economic news, the December Philadelphia Fed manufacturing index came in at an unexpected -16.4 vs. a positive 2.5 consensus. This follows a -5.5 reading in November.
Among other stocks, Palantir Technologies (PLTR) climbed as it attempted to break a three-day losing streak. Shares are hovering below a resistance level around 76. The company extended a major U.S. Army artificial intelligence contract.
Accenture (ACN) bolted higher after the company topped fiscal first-quarter profit and revenue forecasts. It also lifted its fiscal 2025 revenue projections but trimmed its 2025 earnings outlook. The management consulting firm was nearing a 377.34 entry before fading. Shares reclaimed the 50-day line.
Lamb Weston (LW) plunged after the potato products maker sorely missed fiscal second-quarter adjusted earnings and sales estimates. The company replaced its chief executive and lowered its full-year sales outlook.
IBD 50 name Hims & Hers Health (HIMS) dropped and tested its 50-day line. The online pharmacy and telehealth stock tumbled on news that shortages of Eli Lilly’s weight-loss drug Zepbound and its Type 2 diabetes treatment, Mounjaro, have ended.
Hims shares have given back around 27% from a high reached in late November. The stock had topped a profit target from a 23.74 buy point.
10:34 am ET
Economic News: Robust GDP Surprises
The Commerce Department reported the final third-quarter gross domestic product rose 3.1% on an annual basis vs. the 2.8% expected. In addition, personal consumption expenditures climbed 3.7% and topped the 3.5% projected.
Initial jobless claims for the week ended Dec. 14 came in at 220,000. That’s lower than the expected 230,000 and less than the 242,000 in the prior week.
Micron Plummets
Micron (MU) cratered in heavy volume on the stock market today, adding to Wednesday’s 4.3% loss. The memory-chip company reported a modest beat on its fiscal first-quarter adjusted earnings and net sales estimates. But investors focused on its fiscal second-quarter profit and sales outlook, which was below forecasts.
Shares sliced through the 50-day line, triggering a sell signal, although the stock was already below its 200-day moving average. Micron is on track for its largest decrease since March 16, 2020, when it fell 19.8%, according to Dow Jones Market Data. The stock holds a mediocre 71 IBD Relative Strength Rating.
Market Bounce Fizzles; Nike, FedEx Jump Late
Stock Market Today: Restaurant Stock Delights But Vertex Stumbles
Darden Restaurants (DRI) shot up around 14% following the restaurant chain’s beat on fiscal second-quarter adjusted profit and sales projections. It also provided fiscal 2025 earnings and revenue guidance that topped views.
Vertex Pharmaceuticals (VRTX) tumbled in heavy volume after a midstage study for reducing back pain with its non-opioid drug had similarly results to a placebo. Shares are deep below the 200-day moving average and hold a 51 Relative Strength Rating. The drug stock is on pace for its largest drop since Oct. 15, 2020, when it fell 20.7%.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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