Stocks Down At Midday; Cray Crashes 22% – Investor’s Business Daily

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Stocks were modestly lower at midday Wednesday following mixed economic data. The Nasdaq sank 0.8%, the S&P 500 was down 0.6% and the Dow Jones industrial average fell 0.5%. Volume was running below Tuesday’s levels on both the Nasdaq and the NYSE in the stock market today.

Private employers added 156,000 jobs in April, according to payroll processor ADP. It was the lowest total in three years and far less than expected. But the Institute for Supply Management’s index of U.S. service sector activity rose 1.2 points in April to 55.7, beating analysts’ expectations. Readings above 50 indicate expansion.

Cray (CRAY) dived 22%, destroying a flat base that it had been working on for the past two months, following its earnings report after the close Tuesday. The maker of high-performance computers lost 13 cents a share during the period, but that was much better than expected. Sales rose 33% to $105.6 million, also topping views.

Investors appeared to react to uncertainty surround the company’s Q2 revenue outlook.

Meanwhile, Under Amour (UA) dropped 6% after the maker of athletic apparel announced the departure of two key executives late Tuesday. The stock fell more than 8% below a 45.53 cup-with-handle buy point, triggering a sell signal.

How does Under Armour rank among its peers? Find out at IBD Stock Checkup.

Most IBD 50 stocks were lower, but Paycom Software (PAYC) managed to buck the trend, rising 3% after posting strong quarterly earnings. The provider of cloud-based human resources management software is climbing the right side of a deep base.