Markets

Stock Market Lower As Crude Oil Prices Fall Below $90

The stock market weakened on Thursday morning after mixed action at the opening bell. A Bloomberg buyout rumor sent a IBD 50 stock soaring above a buy point.




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The Nasdaq composite traded lower by 0.1% despite relative strength in software and biotech stocks. The S&P 500 had lost 0.4% at the end of the first hour.

The Dow Jones Industrial Average fell 0.4% as Chevron (CVX) dragged the index with a 2.4% loss. Walt Disney (DIS) plus tech stocks Apple (AAPL), Microsoft (MSFT) and Salesforce (CRM) performed best on the Dow, with gains of 3% to 4%.

Volume rose on the NYSE and Nasdaq compared with the same time on Wednesday.

In economic reports, weekly jobless claims rose to 260,000 from 254,000 the previous week, meeting economists’ forecasts. The Challenger job cut report found 25,810 layoffs in July, a decline from 32,517 in June.

Crude Oil Falls Below Key Level

The price of Western Intermediate crude oil fell below $90 per barrel and is testing a support level. Crude was down nearly 1% to $89.96 per barrel and is approaching the July 14 low at $88.23.

Energy Select Sector SPDR (XLE) fell 1.7%, the worst performance among the 11 S&P sector ETFs. The ETF has met resistance at its 50-day moving average. Most other sectors also fell, while Consumer Discretionary Select Sector SPDR climbed 0.5%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32767.60 -44.90 -0.14
S&P 500 (0S&P5) 4158.27 +3.10 +0.07
Nasdaq (0NDQC ) 12716.14 +47.98 +0.38
Russell 2000 (IWM) 189.75 +0.00 +0.00
IBD 50 (FFTY) 28.81 -0.02 -0.07
Last Update: 10:10 AM ET 8/4/2022

Global Blood Therapeutics (GBT) is keeping a bid under Innovator IBD 50 ETF (FFTY) on Thursday morning. The stock soared 36% after  Bloomberg reported the company is attracting buyout bids. GBT gapped up past the 36.82 buy point of a cup with handle formation within a larger consolidation.

AMN Healthcare Services (AMN) slid more than 5% on heavy volume ahead of its earnings report after today’s close. AMN appeared to fall in sympathy with Cross Country Healthcare (CCRN), which sold off 18% after its earnings report. Despite the drop, AMN continues to work on a cup with handle with a 125.04 entry.

Stock Market Moves On Earnings

Earnings news continues to generate most of the big price moves in the stock market.

Health care giant McKesson (MCK) beat fiscal Q1 top and bottom line earnings estimates, posting a profit of $5.83 per share. It also raised 2023 EPS guidance above consensus.

The stock has rallied more than 6% on the news, breaking out through the 338.93 buy point. The 5% buy zone extends to just above 355.

MCK is trading at an all-time high while holding a bullish 97 Composite Rating and 91 EPS Rating. Price action is benefiting from membership in the well-performing medical-wholesale drug/supply industry group.

Chip equipment maker Axcelis Technologies (ACLS) climbed 4.5%, working its way up toward the 83.83 buy point of a cup base. Late Wednesday, the company beat second-quarter estimates and raised guidance for both the current quarter and full year.

A pair of liquefied natural gas stocks traded near buy points following earning reports. Both missed profit expectations but beat revenue estimates.

Cheniere Energy (LNG) rose slightly and is near the 146.45 entry of a double-bottom base.

New Fortress Energy (NFE) posted a loss for the quarter, climbed more than 2%. New Fortress is forming a cup base with a 52.47 buy point. The price of natural gas remains firm on demand from Europe and the U.S.

Electric vehicle maker Lucid (LCID) sold off 11.5% after the company again cut its 2022 EV production guidance. The company also reported a loss of 33 centspera share for the quarter.

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