The Dow Jones Industrial Average fell. The Senate passed a bill to prevent government shutdowns, while House Speaker Nancy Pelosi touted “very positive” progress on an infrastructure bill. Microsoft (MSFT) vice versa, while Intel (INTC) inches higher. CarMax (KMX) flashed several sell signals after a loss of profit.
The market struggled for direction which made breakouts difficult. But that didn’t stop Western Alliance Bancorp (WAL) from testing a new purchase point. In the meantime, Northern Oil & Gas (NOG) showed impressive relative strength.
Pelosi promotes “positive” conversations; Senate passes decommissioning law
House spokeswoman Nancy Pelosi told reporters the House is “very positive” to put the $ 1 trillion bipartisan infrastructure bill to the vote on Thursday.
There are fears that progressive Democrats may derail the law as they battle with moderate parties over the controversial $ 3.5 trillion so-called human infrastructure law. The package contains a number of health, education and climate protection measures.
Meanwhile, Senate majority leader Chuck Schumer scored a small victory after passing a government funding bill by December 3rd. It was passed with 65 votes to 35.
“I am confident that the House will approve this measure this afternoon and send it to the president’s desk before the funding runs out,” said Schumer on Thursday.
A mix of economic data was also released on Thursday. The Department of Labor reported that initial jobless claims rose to 362,000 in the week ended September 25. Analysts had expected a decline to 335,000.
The Commerce Department revised its final estimate for GDP growth in the second quarter up to 6.7%. That was higher than its initial estimate of 6.6% and was in line with economists’ expectations as the economy continues to recover from its pandemic slump. Private consumption and spending increased 12% year over year, revised up from an initial growth of 11.9%.
Nasdaq on the up as the stock market struggles
The stock market is likely to end September on a bad note as all major indices decline for the month.
The Nasdaq saw early gains melt away as the bears battled the bulls. At around 2:44 p.m. ET, the composite index was up 0.4%.
Money tree (DLTR) was the biggest straggler with a decrease of around 6%. It comes after Wednesday’s surge in plans to add price points above $ 1 in Dollar Tree Plus stores. It will also test price points above $ 1 in some legacy stores.
The S&P 500 suffered more, losing about 0.3%. Outside of CarMax, gap (GPS) was the biggest loser with a decrease of around 7%. Paychex (PAYX) was a bright spot and gained over 5%.
Overview of the US stock market today
|index||symbol||price||Gain loss||% Change|
|S&P 500||(0S & P5)||4347.92||-11.54||-0.26|
Last update: 2:44 p.m. ET 09/30/2021
The S&P sectors were mostly red, with communications services growing the most. Industrials and consumer staples were the worst laggards.
Small caps also struggled, with the Russell 2000 losing 0.1%.
Growth stocks recovered from the red, with the innovator IBD 50 ETF (FFTY) gaining 0.5%.
Microsoft shares will turn around if the Dow Jones falls
The Dow Jones Industrial Average struggled after being knocked down but was still down around 0.8%. Almost all components were in the red.
Microsoft stock had made up some ground but fell under wider pressure. It was practically flat.
Software stock had formed a new flat base but is now well behind the ideal buy point of 305.94.
Meanwhile, Intel managed to climb an inch higher, up 0.3%, despite not being highs. But it was Merck (MRK), which today managed to squeeze out the best price gain of the Dow Jones, although it has risen by almost 1%.
CarMax share flashes sell signals
CarMax stock was hit hard after earnings of $ 1.72 per share fell far short of analyst estimates. The sales were able to exceed the views.
A major weakness was the comparable used car sales. The company posted a 6.2% gain, which was below Wall Street’s expectations.
The CarMax share lost almost 11% and was sold out on a large scale.
KMX stock had been in the buy zone of a cup base, but it lagged after losing profits.
The stock fell below its 50-day moving average and fell more than 7% below its ideal entry point.
Attempt to break out of bank stocks stalls
According to MarketSmith analysis, Western Alliance Bancorp was trying to break out of a consolidation pattern.
It is currently trading below its ideal buy point of 109.94 but could see its eighth straight rise.
The shares of the regional banks offer a remarkable mix of earnings and price development.
When the stock market is in trouble, it is a good idea to check your watchlist for stocks that are showing strength.
NOG leads the stock market today
Northern Oil & Gas reached new highs on its relative strength line, making it a good candidate.
It’s near a cup base entry of 21.74 and is in the top 3% of stocks for market performance over the past 12 months. Energy stocks have been hot lately.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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