Stock Market Sharply Lower On Jobless Claims, Strong GDP; Meme Stock AMC Plugs On Capital Raise

The stock market fell sharply Thursday morning, led down by the technology sector, after little change in jobless claims and stronger-than-expected economic growth. Weak earnings from chipmaker Micron Technology (MU) and stock meme AMC Entertainment’s (AMC) capital raise also hurt stocks. X The Nasdaq composite fell 2.8% while the S&P 500 dropped 2%. The Dow Jones Industrial Average lost 1.5%. The small-cap Russell 2000 index shed 2%. Volume rose on the Nasdaq but fell on the NYSE vs. the same time on Wednesday. The yield on the benchmark 10-year Treasury note was virtually unchanged, at 3.67%. Crude oil prices were flat at $78.30 per barrel. Jobless Claims Rise As Recession Fears Increase All 11 S&P sectors lost ground Thursday. The S&P Technology Select Sector ETF (XLK) was the worst-performing sector, down 2.6%. Initial jobless claims rose modestly to 216,000, which was below estimates for a rise to 225,000 vs. 211,000 in the prior week. Meanwhile, the third estimate of Q3 GDP came in stronger than expected, showing growth of 3.2% vs. the second estimate’s 2.9%. On Friday, investors will shift their attention to more inflation data, with the release of November’s personal consumption expenditures figures. Chinese stocks rallied sharply Thursday, as Hong Kong’s Hang Seng index surged 2.7%. China’s securities regulators have pledged to allow overseas listings by tech companies. Alibaba (BABA) fell 0.3%, while (JD) and Pinduoduo (PDD) each fell more than 1%. In London, the FTSE fell 0.4% after the UK said the economy contracted more than expected in the third quarter. The German DAX fell 1.3% and the French CAC dropped 0.9%. Amazon (AMZN) fell 3.8% as rising jobless claims were seen as another indicator of an upcoming recession. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) also fell more than 3% each. Stock Market Falls On Earnings, Company News The Innovator IBD 50 ETF (FFTY) dropped 2% Thursday, led down by oil and chip stocks. Micron Technology (MU) declined by more than 4.5%. Late Wednesday, the memory-chip maker missed estimates for its fiscal first quarter amid a cyclical downturn. The chip industry bellwether also sharply lowered estimates for the current quarter, sending chip stocks to broad early losses. MU shares are trading below their 50-day moving average and near their 52-week low reached on Sept. 23. CarMax (KMX) plunged more than 7% after management said inflation and rising interest rates led to “vehicle affordability issues.” The company fell far short of third-quarter earnings estimates. The used car retailer reported earnings of 24 cents per share for the quarter ending Nov.30. The consensus among analysts tracked by FactSet was for 65 cents. Under Armor (UA) on Wednesday said Stephanie Linnartz will join the company as CEO, effective Feb. 27. Colin Browne, who has been interim president and chief executive since June, will resume his role as chief operating officer Linnartz becomes the clothing apparel retailer’s first female president. She currently serves as the president of Marriott International (MAR). Under Armor fell more than 3%, and Marriott shares dipped more than 1%. Stock Market Movers And Shakers Shares of AMC Entertainment (AMC) plunged 14% toward 22-month lows after the movie theater operator announced a $110 million equity capital raise. The meme stock said it was also asking the company’s board of directors for a 1-for-10 reverse split of its common stock. Tesla (TSLA) doubled the discounts offered on its Model 3 and Model Y electric vehicles delivered in the US this month, according to its website. “Take delivery of a new Model 3 or Model Y between December 21 and 31, 2022, for a $7,500 credit and 10,000 miles of free Supercharging,” the EV maker says on its website. The Tesla credits come after President Joe Biden in August signed a legislative package that includes EV tax incentives. Shares of Tesla fell more than 8% Thursday morning. Airlines are canceling hundreds of flights as a severe winter storm is expected to bring freezing temperatures and snow across swaths of the country. United Airlines (UAL), Delta Air Lines (DAL) and American Airlines (AAL) all fell between 3% and 6%. Over 1,200 US flights scheduled for Thursday had been canceled as of Wednesday afternoon, according to FlightAware, a flight tracking site. Gilead Sciences (GILD) won Food and Drug Administration approval for a twice-a-year HIV treatment on Thursday. GILD shares were unchanged. Dow Jones member Caterpillar (CAT) fell more than 2% after breaking out past a 239.95 buy point on Wednesday. Bullishly, the stock’s relative strength line, a key technical indicator, hit a new high. CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating. Follow Michael Molinski on Twitter @IMmolinski YOU MAY ALSO LIKE: Catch The Next Big Winner With MarketSmith Is It Time To Sell GLD Stock As Gold Miners Surge? Get Full Access To IBD Stock Lists And Ratings Is XOM A Buy Now After Q3 Earnings? Futures: After Ugly Week, Here’s What To Do

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