Although the major indices came in from intraday lows, the Dow Jones Industrial Average was still down over 190 points after falling over 600 points earlier in the session. Income from major US banks, including J. P. Morgan (JPM) and Morgan Stanley (MS) disappointed Wall Street early Thursday.
Investors digested earnings news from Dow Jones leader JPMorgan early Thursday, which showed a wider-than-expected second-quarter profit of 28%, a $1.1 billion drop in credit deficit provisioning amid concerns over a potential economic slowdown. held responsible.
JPMorgan stock led the blue chip with Dow Jones down 4% Goldman Sachs (GS) sold in over 3.3% sympathy. passenger (TRV) also led the decline in Dow shares on Thursday. Elsewhere, Morgan Stanley cut earlier losses on Thursday, down 0.2% after missing Q2 sales and earnings estimates.
Dow Jones Today
In late afternoon trading, the Dow Jones Industrials was down 1.1% after trading earlier in the session. The S&P 500 also erased early losses but still declined 1%. Meanwhile, the Nasdaq extended losses near break-even as tech stocks outperformed.
Smallcap’s performance was the worst in the Russell 2000, falling 1.7%. Volume was lower on the Nasdaq and higher versus the NYSE at the same time on Wednesday. Technology stocks led the rally in S&P 500 sectors, while energy and materials laggards. The Energy Select Sector SPDR (XLE) was down 2.9% and was below its 200-day line. US crude oil prices were down 1.4% on Thursday below $95 a barrel.
Month-on-month producer prices for June were worse than expected, showing a jump of 1.1%. Analysts expected growth of 0.8%. This, coupled with yesterday’s disappointing consumer price index, gives investors an edge amid rising prospects of a 100-basis-point rate hike in July.
In other economic news, US retail sales are expected to be released early Friday by the US Census Bureau, with the consensus for 0.8% growth. Retail sales can inform investors about the pace of consumer spending and the potential impacts on GDP.
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Health Care Stocks Lead IBD 50
In the growth-focused IBD 50 index, health care stocks outperformed, driven by strong moves. AMN Resources (AMN), Privia Health Group (PRVA) and cross country healthcare (CCRN). These health care plays grew 6.4%, 3.8% and 2.7%, respectively.
dow jones leader unitedhealth (UNH) is scheduled to report earnings on the Friday before the market opens. Analysts expect the firm to show earnings of $5.20 per share on revenue of $79.68 billion for the second quarter. UnitedHealth is the most recent breakout stock among managed care firms. Since then the stock has recently slipped below the 507.35 double-bottom entry, but the shares have found support at the 50-day moving average.
Other recent breakouts from the managed care group include humana (HUM) and sentin (CNC). The managed care industry group ranks 14th out of 197 clusters of IBD.
Follow Rachel Fox on Twitter@IBD_RFox For more Dow Jones and stock market commentary.