Dow Jones Sells After Stock Market Dive; Cisco drops 14% on earnings
The Dow Jones Industrial Average was threatening to extend Wednesday’s heavy losses, falling 400 points on Thursday, as the stock market headed towards testing a correction. Synopsis (SNPS) and BJ’s Wholesale Club (BJ) were the single lead in the early trade. Cisco Systems (CSCO) led the decline in Dow Jones shares, falling 14% on disappointing earnings outlook.
Kohls (KSS) and Sociedad Quimica y Minera de Chile (SQM) were also among the earners on Thursday morning. Shares of Kohl’s were down 6% in early trading, while shares of SNPS were up and shares of SQM were up 6%.
Electric-vehicle giant Tesla (TSLA) traded down about 1% on Thursday morning, as Wedbush lowered its price target from 1,400 to 1,000. Elsewhere, Dow Jones tech leaders Apple (AAPL) fell 1% and Microsoft (MSFT) 0.1% in today’s stock market.
Amid an already struggling stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Northrop Grumman (NOC), Eli Lilly (LLY) and Exxon Mobil (XOM) — are among the top stocks in IBD. are from. Thursday.
Merck and Microsoft are IBD leaderboard stocks. Eli Lilly and Merck were featured in this week’s Stocks Near a Buy Zone column.
Dow Jones Today: Treasury Yield, Oil Prices
After Thursday’s open, the Dow Jones Industrialist was down 1.3%, while the S&P 500 fell 0.7%. The Nasdaq Composite was down 0.1% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3%. The SPDR S&P 500 ETF (SPY) dropped 0.65%.
The 10-year Treasury yield fell to 2.78% on Thursday morning after ending Wednesday at 2.88%. The 10-year Treasury yield is down from last week’s 52-week high of 3.16%. Meanwhile, US oil prices fell more than 1%, with West Texas Intermediate crude trading above $108 a barrel.
Weekly jobless claims data and the Philadelphia Federal Reserve’s Manufacturing Business Outlook survey for May came in at 8:30 a.m. ET. Unemployment claims rose to 218,000 for the first time, exceeding that estimate, which called for a slight drop of 197,000.
The Philadelphia Fed Manufacturing Index for May came in at 2.6, well below Econoday’s forecast for a reading of 16.1.
stock market rally attempt
Major stock indexes posted weak action on Wednesday, as the Dow Jones Industrials, Nasdaq Composite and S&P 500 ended with losses.
Wednesday’s The Big Picture column commented, “With price jumps (highs) across the board due to runaway inflation, consumers are very much on the ropes. And Target (TGT) posted an earnings crunch early Wednesday.” Which acted as a hammer blow that landed the stock market flush on the chin. The stock fell a massive 24.9%, its worst performance since Black Monday in 1987.”
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Dow Jones Earnings: Cisco Systems
Cisco Systems reported earnings late Wednesday. The company’s fiscal third-quarter earnings rose in line with estimates while revenue missed Wall Street’s targets. The company’s outlook came in below expectations as China’s COVID lockdown worsened supply chain issues.
Cisco shares fell more than 14% early Thursday. The stock ended up nearly 25% from its 52-week high on Wednesday.