Stock market declines as crude oil prices fall below $90

The stock market weakened Thursday morning after mixed action at the opening bell. A Bloomberg takeover rumor pushed an IBD 50 stock above a buy point.


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

The Dow Jones Industrial Average fell 0.4% as Chevron (CVX) led the index with a loss of 2.4%. waltz disney (DIS) plus tech stocks Apple (AAPL), Microsoft (MSFT) and Selling power (CRM) had the best results on the Dow Jones, with gains of 3% to 4%.

Volume increased on the NYSE and Nasdaq from the same time on Wednesday.

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

Crude Oil Falls Below Key Level

The price of Western Intermediate Crude Oil has fallen below $90 a barrel and is testing support. Crude was down almost 1% at $89.96 a barrel and is approaching the July 14 low at $88.23.

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

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0DJIA) 32767.60 -44.90 -0.14
S&P500 (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
INN 50 (FFTY) 28.81 -0.02 -0.07
Last Updated: 10:10 a.m. ET on 08/04/2022

Global Blood Therapeutics (GBT) is holding an offer under Innovator IBD 50 ETF (FFTY) on Thursday morning. The stock soared 36% after Bloomberg reported the company was attracting takeover bids. GBT moved above the 36.82 one-cup buy point with the formation of a handle in a broader consolidation.

AMN health services (AMN) slipped more than 5% on heavy volume ahead of its earnings report after today’s close. AMN seems to fall in sympathy with Cross Country Health Care (CCRN), which lost 18% after the publication of its results. Despite the drop, AMN continues to work on a cup with handle with a 125.04 entry.

The stock market moves on earnings

Earnings news continues to drive most significant price movements in the stock market.

health giant McKesson (MCK) beat fiscal first-quarter net earnings estimates and higher, posting earnings of $5.83 per share. It also raised the 2023 EPS forecast above consensus.

The stock rebounded more than 6% on the news, breaking through the buy point of 338.93. The 5% buy zone extends just above 355.

MCK is trading at an all-time high while holding a bullish composite rating of 97 and an EPS rating of 91. The price action benefits from membership in the successful wholesale drug/medical supplies industry group.

Manufacturer of chip equipment Axcelis Technologies (ACLS) climbed 4.5%, advancing towards the buy point of 83.83 from a cup base. Late Wednesday, the company beat second-quarter estimates and raised its guidance for the current quarter and full year.

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

Energy Cheniere (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 forms a cup base with a buy point of 52.47. The price of natural gas remains firm thanks to European and American demand

Electric vehicle manufacturer Lucid (LCID) sold 11.5% after the company again cut its EV production forecast for 2022. The company also reported a loss of 33 cents per share for the quarter.


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