Indexes Drift Down As Stock Market Digests Negative News – Investor's Business Daily

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The U.S. stock market dog-paddled for much of the day, mostly showing small declines in afternoon trading in a news-driven market.


Nasdaq composite dipped 0.1% and the S&P 500 was off also 0.1%. The Dow Jones Industrial Average, meanwhile, rose 0.1%. The Russell 2000 small-cap index was down 0.4%.

Volume remained light, with NYSE off 2.56% from the same time yesterday, and Nasdaq trading down 6.6%.

In the news, General Electric (GE) rose 2.5% as CEO Larry Culp said it’s “game on” this year for the company’s struggling power business, and predicted a major turnaround by 2021 for GE.

Boeing (BA) slipped another 0.7% Thursday, one day after the U.S. announced it would ground the plane maker’s 737 Max 8 jets after two deadly crashes of the plane in five months, the last coming on Sunday. Boeing shares are off nearly 14% since the close of trading last Friday.

Price Spikes

Elsewhere, there were notable market winners on Thursday, too.

Zscaler (ZS), a cloud-based software security provider, continued its epic run, gaining 3% in afternoon trading. Zscaler gapped up early this month, and never looked back. It is now up 17% in just 10 trading sessions. It has a 99 Composite Rating from IBD Stock Checkup, meaning it outperforms 99% of all stocks listed based on a variety of technical, price and fundamental factors. It’s now well extended above its buy point.

Fate Therapeutics (FATE) jumped 3% and is now trading just above its buy point of 18.08. It pulled out of a 14-week consolidation pattern, despite missing analysts estimates for earnings last week. It has a Relative Strength of 95.

WEX Inc. (WEX), which provides payment processing and other information management services to large vehicle fleet owners, also rose. It’s emerging from a 124-day cup with handle formation. At 180, it’s now just below its 182.10 buy point.

Meanwhile, IPOs MongoDB (MDB), a database company, gapped up 26% in late trading, while Domo (DOMO), which developed an operating system that lets workers access real-time data, spiked 21%. Both rallied on earnings reports.

News Drives The Markets

Investors faced a raft of news early Thursday, including reports that new-home sales came in below estimates for January, while jobless claims were a bit higher than expected.

China also may have dampened enthusiasm. The White House announced that a planned meeting this month between Chinese President Xi Jinping and President Trump likely would be postponed until April, which suggested trade talks had hit a rough patch. Meanwhile, China also reported its smallest gain in industrial output in nearly 17 years, sending stocks down 1.2% for the day on the Shanghai Composite index.

Markets were also awaiting earnings reports after trading from Ulta Beauty (ULTA), Adobe (ADBE), and Broadcom (AVGO).


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