The Dow Jones Industrial Average and other major indexes closed below the 200-period moving average on Thursday. The blue-chip index encountered resistance at the 50-day moving average on Monday and fell 1.7%. Initial claims rose more than expected. The February jobs numbers will be released early on Friday.
X
apple (AAPL) pared early gains, falling 1.4%. The tech giant got another analyst upgrade on Thursday. Intel (INTC) was the only gainer in the Dow Thursday. JPMorgan Chasing (JPM) And Walgreens (WBA) drag the index over.
The S&P 500 is down about 1.9% and the Nasdaq is down more than 2%. Both closed near session lows.
I acquired some shares in the S&P 500. General Electric (GE) And PayPal (PYPL) were a big mover. General Electric has given bullish guidance for 2023, sending shares to their highest levels in nearly five years. GE launched its healthcare business in January to focus on aerospace, energy and renewable products.
Tech leaders have been considerably less so, though Amazon.com (AMZN) And advanced micro devices (AMD) outperformed on a relative basis.
The Nasdaq was pulled in part by Chinese internet stocks JD.com (Dinar), whose earnings disappointed, and PDD (PDD), previously known as Pinduoduo, who fell into sympathy. Chinese stocks fell broadly, with the iShares MSCI China ETF (MCHI) decreased by 3.5%.
Trading volume on the NYSE and Nasdaq was higher than on Wednesday, according to early numbers.
The small-cap Russell 2000 had the worst day of all indices, falling 2.8%.
The Innovator IBD 50 ETF (fifty) slipped 3.1%.
Crude Oil fell 1.4% to settle at $75.59 a barrel.
The yield on the benchmark 10-year Treasury note fell 5 basis points, to 3.92%.
job data
Claims for unemployment benefits rose more than expected, to 211K for the week ended March 4, compared to 190K in the previous week. According to Comerica’s chief economist Bill Adams, a warmer winter this year has led to an increase in hiring. That may now begin to fade, which indicates that “the labor market is past the limit of distress.” Friday’s jobs report is likely to show the unemployment rate unchanged at 3.4% – “the lowest in more than half a century”.
Friday’s jobs report for February follows a very strong number in January which saw the economy add 517K jobs. ADP on Wednesday had an estimate of 242,000 private payrolls for the month of February.
Dow Jones leaders
Dan Ives, an analyst at Wedbush, was the latest to join a growing group of analysts who are turning optimistic about the technology leader Apple. Ives raised his price target from 180 to 190 for the Cupertino, California electronics giant.
Earlier, Goldman Sachs’ Michael Ng showed confidence in a 199 target and kicked off with a buy rating on AAPL, while Morgan Stanley analyst Erik Woodring saw the stock reach 180 due to a surge in iPhone subscription volume.
Microsoft shares fell, ending 0.5% lower. The new AI-powered Bing search engine has reached 100 million daily active users. The new Bing offers search, chat, and answers, as well as content creation features, all in one place.
The banking sector is crumbling
Sellers swarmed the banking sector. SPDR S&P Bank ETF (KBE) declined 7.3%.
A parent in Silicon Valley Bank SVB Financial Group (SIVB) was sliced in half after news broke that it was offering $1.25 billion worth of stock to help it weather its rapid cash burn.
brokerage Charles Schwab (SCHW) fell nearly 13%. American bank (Buck) decreased by 6%.
New bout of selling crypto company sent Silverjet (SI) reeled further on Thursday after the company said it would close. Bitcoin is down more than 6%.
Outside the financial sector, stocks Asana (Asan) generated close to 20% strong turnover after earnings. The workflow management platform company also gave a strong outlook.
Wholesale BJ’s (BJ) also after strong earnings. Stocks are in a buy area above the buy point of 76.04.
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