The Dow Jones Industrial Average fell in today’s stock market and led the downside. The Nasdaq also traded lower as weekly initial jobless claims jumped and August retail sales unexpectedly rose.
Stock Market Today
The Nasdaq composite lost 0.3% and wiped out some of yesterday’s gains. The Dow Jones lost 0.4% while the S&P 500 also lost 0.4%. At around 1:30 p.m. ET, the Russell 2000 index fell 0.3%. Data showed higher volume on the NYSE and lower on the Nasdaq vs. the same time on Wednesday.
The major indexes traded lower early Thursday but moved off their lows in midday trading. Bearish economic news was released and hindered the indexes. Ahead of the market open, the Labor Department reported initial unemployment claims rose to 332,000 last week from a pandemic low of 312,000 a week earlier, worse than the Econoday consensus estimate for 315,000 claims.
Meanwhile, U.S. retail sales rose 0.7% in August, countering estimates for a 0.8% decline per Econoday’s estimates.
U.S. Stock Market Today Overview
Last Update: 1:34 PM ET 9/16/2021
The retail sales jump reverses July’s 1.8% slip and countering expectations for a decline of 0.8%. Minus vehicles and gas, sales surged 2%, vs. a 1.4% decline in July and expectations for a 0.3% decrease.
Growth stocks continued to rebound on Thursday, bucking the trend. The Innovator IBD 50 ETF (FFTY) gained over 1%, extending gains from earlier this week. The ETF is now back above a 50.06 buy point after gaining support at the 21-day exponential moving average.
Fitness drink maker Celsius became further extended from a recent buy area. Shares broke out on Sept. 1 from an 83.10 consolidation pattern’s buy point. The stock is now 16% extended from the buy point. Jefferies initiated coverage on the stock with a buy rating. The note set a price target at 115, more than 26% above Wednesday’s close.
Elsewhere, shares of recent IPO stock TaskUs (TASK) continued to rebound from the 21-day exponential moving average. Shares broke out from their most recent consolidation on Aug. 11 and remain nearly 80% extended from the buy point of 35.73. The stock IPO’d on June 11 at $23 a share.
Dow Jones Today
Inside the Dow Jones, American Express (AXP) led the Dow Jones on the upside. The stock rose nearly 1% after Bank Of America upgraded the stock to neutral. Shares reclaimed support at their 21-day exponential moving average and are approaching the 50-day line.
The stock is also building a flat base with 179.77 buy point.
Cisco Systems (CSCO) reversed an early gain to a loss of roughly 0.6%. The company held an investors’ day event on Wednesday. Cisco projects annual revenue growth of 5% to 7% over the next four years, up from a five-year average gain of 1%. Credit Suisse also upgraded the stock to outperform from neutral, raising the stock’s price target to 74 from 56.
Meanwhile, Nike (NKE) traded slightly lower with a drop of roughly 0.1% after a couple straight days of declines. Shares are shaping a potential flat base with a 174.48 buy point but are now 10% below this proper entry. The stock also recently dropped below its key 50-day and 200-day lines in August, a bearish sign.
Nike plans to release its first-quarter fiscal 2022 results on Sept. 23. According to IBD data, the athletic shoe and apparel giant is expected to show year-over-year earnings growth of 18% to $1.12 per share. Sales are also seen rising 18%, to $12.46 billion.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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