Most indexes opened sharply lower Thursday but recovered considerably from session lows. Stocks continued to be in the red as a higher than expected producer price index number of 11.3% followed on the heels of yesterday’s high CPI numbers in premarket hours.
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A widely anticipated Fed hike of 100 basis points also caused the downward skid. Financials also pressured stocks after earnings misses by JPMorgan Chase (JPM) and Morgan Stanley (MS).
The market recovered most of its loss by the close, in action that resembled Wednesday’s trading.
After outperforming other indexes Wednesday, the Russell 2000 was hit worst and lost 1.3%. The Nasdaq managed a 0.03% gain after being down 2% in the morning. The Dow Jones Industrial Average, which was down by 600 points earlier in the day, closed 0.5% lower, down 142 points.
The S&P 500 was down by 0.3%. The Innovator IBD 50 (FFTY) also recovered and closed 0.5% higher.
Volume rose on the NYSE and Nasdaq, according to preliminary data.
Stocks On The Move Today
A few stocks are showing a strong uptick despite the larger gloomy outlook after yesterday’s and today’s inflation reports. The positive action may not be sustained depending on economic headwinds that are putting the markets under pressure.
Privia Health Group (PRVA) continues its ascent above its cup base. The stock bounced on higher volume last week as it found support at its 50-day moving average. The stock is extended past its buy point. During the previous quarter, the company beat revenue estimates by 47%.
BP Prudhoe Bay Royalty Trust (BPT) broke below the 50-day moving average in heavy volume, indicating higher institutional selling. The break appears to be a sell signal.
Encore Capital Group (ECPG), an IBD 50 stock, is forming a cup base with a buy point at 72.77. Its Relative Strength Rating is a solid 97.
BJ’s Wholesale Club (BJ) is another stock to watch because it is forming a double-bottom base and is close to its entry point of 71.10.
After promising action in a cup-with-handle base earlier this month, AT&T (T) has fallen below its 50-day moving average. Its downward trend is on lower volume, however.
Qualcomm (QCOM) is breaking long-term resistance around the 50-day line and climbed 4.6% Thursday. It remains deep in a correction.
Shares of Ritchie Bros. Auctioneers (RBA) are hovering near the buy point of 68.02 from a cup with handle. The company beat earnings estimates in Q1 after missing estimates in the three previous quarters.
The Energy Select Sector SPDR (XLE) slid below the 200-day line today after falling nearly 2%.
The 10 year Treasury yield gained slightly to 2.963%.
The euro fell below parity with the dollar as weaker growth and a higher inflation outlook combined with fears of a cutoff of the Russian gas pipeline to Europe. The European Commission also anticipates record inflation of 7.6%, a steeper rise than the earlier estimate of 6.1% for 2022. Europe’s economic expansion is also expected to be weaker in 2023 than in 2022 at 1.4%.
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The post Inflationary Headwinds Tighten Brakes In Stock Market, But Indexes Pare Most Losses appeared first on Investor’s Business Daily.
