Stocks remained weak into the afternoon Thursday, as the probability of a interest rate increase seemed more likely at the Federal Reserve’s June meeting.
In a morning speech, New York Fed President William Dudley said he was “pleased to see that the probability” of a rate hike was priced into the financial markets. He said June was “definitely live” for a rate hike.
The Nasdaq tumbled 1.1%, while the Dow Jones industrial average fell 0.9% and the S&P 500 0.8%. The small-cap Russell 2000 sank 1.1%. Volume was tracking higher than the same time Wednesday in the stock market today.
Thursday marked the first anniversary of the last time the Dow industrials hit a high, marking an 18,351 intraday peak on May 19, 2015.
Meanwhile, Goldman Sachs (GS) fell 3% and crossed back below its 50-day moving average in heavy turnover after drawing some fire in the media as an analyst praised Tesla Motors (TSLA) on Wednesday morning, helping the stock rise. Later in the afternoon that day, news came out that Goldman would be lead underwriter in a $2 billion stock offering that is to fund a production ramp-up for the Model 3. Goldman Sachs analyst Patrick Archambault had upgraded Tesla on Wednesday morning to buy after being neutral the past three years, saying the stock had fallen enough.
Salesforce.com (CRM) rose more than 3% in enormous volume after beating on earnings per share and revenue for its April-ended Q1. The stock has gapped out of a V-shaped cup-with-handle base with a 77.92 buy point. But the cloud-based business software giant has given back some of its early gains.
A couple of retail stocks bucked the recent trend of disappointments by posting earnings that were better than expected but still showed year-over-year declines.
Wal-Mart Stores (WMT) surprised analysts by beating estimates and was trading 9% higher. EPS of 98 cents edged 5% lower but beat the consensus estimate of 88 cents. Sales rose 1% to $115.9 billion.
Dick’s Sporting Goods (DKS) rose nearly 8% after its Q1 report showed EPS edging past estimates. Dick’s earnings dropped 6% from a year earlier to 50 cents a share. The stock is still trading well below its 50- and 200-day moving averages.
U.S. Concrete (USCR), a longtime member of the IBD 50, was down nearly 5% in above-average volume, and it sliced through its 50-day moving average and was trying to hold at a 59.50 buy point from a cup-with-handle base. The stock has been one of the top stocks on the IBD 50.