Stocks Close Lower, with Dow Leading the Decline
Stocks closed lower on Thursday, as all three major indexes finished the session in negative territory. The Dow saw the biggest drop, ending the day down 1.1%, while the S&P 500 and Nasdaq Composite finished 0.8% lower. These losses put the indexes on pace for a losing week, with the Dow expected to finish 1.4% down, the S&P 500 on track to lose 0.9%, and the Nasdaq Composite poised to shed 0.8% for the week.
Textron Shares Expected to Rebound, According to Citi
Citi has initiated coverage of aircraft maker Textron with a buy rating. Analyst Jason Gursky wrote in a note that the company’s revenue and earnings visibility are strong, thanks to recent backlog growth in its Aviation and Bell segments. Gursky also noted that Textron’s valuation has already factored in a recessionary environment and reduced business jet demand.
Strong Jobs Report Expected, Says Economist
According to Jeffrey Roach, chief economist for LPL Financial, the economic data released on Thursday points to a strong jobs report expected on Friday. Roach cited the ADP private payroll report, job opening and turnover data, and manufacturing index readings as positive indicators. This could have implications for the Federal Reserve’s decision on interest rates following its pause in June.
Stocks Remain Down, but Recover Slightly
Stocks remained down entering the final hour of trading on Thursday, but managed to recover slightly from earlier session lows. The Dow was down 1%, while the S&P 500 and Nasdaq Composite slid 0.7%. Despite the recovery, all three indexes were still down more than 1% for the day.
Piper Sandler Downgrades Affirm, but Optimistic on Credit Card Companies
Piper Sandler analyst Kevin Barker downgraded point-of-sale lender Affirm to underweight from neutral, citing higher rates and the resumption of student loan payments as potential concerns. Shares of Affirm fell more than 15% on Thursday. However, the firm raised its price targets for Capital One and Discover Financial, expressing optimism for credit card companies.
Keurig Dr Pepper Rises After Upgrade by Morgan Stanley
Shares of Keurig Dr Pepper rose about 1.5% after Morgan Stanley upgraded the stock to overweight from equal weight. The firm stated that the stock’s recent underperformance created a buying opportunity, and highlighted the potential for continued upside in US refreshment beverages.
Russell 2000 on Track for Worst Day Since April
The Russell 2000, which represents small-cap stocks, is on pace for its worst day since April. The index was down more than 2.2% on Thursday and is down 3% for the week. The decline follows a 3.1% fall since the start of July, making it the worst weekly performance since March.
Microsoft the Only Dow Stock to See Gains
Microsoft was the only stock of the 30 in the Dow to see gains on Thursday. The technology giant was up 1%, while the rest of the index traded lower. 3M, Chevron, American Express, and Nike led the decline, with all down more than 2.5%.
Dow and S&P 500 Set for Worst Daily Performances in Over a Month
With just hours left in Thursday’s session, the Dow and S&P 500 are on track to post their worst daily performances in over a month. The Dow’s 1.3% drop would be its biggest loss since March 22, while the S&P 500’s 1% slide would be its worst day since May 23.
Uncertainty in Economy Following Jobs Data, Says Analyst
Mark Hamrick, senior economic analyst at Bankrate, states that the future of the U.S. economy remains unclear following Thursday’s jobs data. He highlights the uncertainty around the Federal Reserve’s decision on interest rates and how it could impact economic contraction.
Energy Sector Leads Thursday’s Losses
All 12 sectors of the S&P 500 were in the red on Thursday, with the energy sector leading the losses. The sector was down 2.6%, with companies like ConocoPhillips, Hess, Marathon Oil, and Devon Energy seeing shares decline by more than 3.3%. Materials stocks were the second-largest losers, with the sector losing 2.1%.
Bitcoin Falls After Reaching 13-Month High
Bitcoin reached a 13-month high of over $31,450 on Thursday, but then fell 1% to $30,147.48. The drop came after better-than-expected U.S. jobs data increased concerns about interest rates. Bitcoin’s liquidity has been low in recent months, leading to exaggerated ups and downs.
Plug Power Rises Following Positive Rating from Citi
Shares of green hydrogen company Plug Power rose after Citi initiated coverage with a buy and high-risk rating. Analyst Vikram Bagri believes the company is on track for positive gross margins this year and aims to achieve over 30% in gross margins by 2026.
Major Indexes Slide More Than 1%
All three major indexes experienced significant declines on Thursday, with the Dow dropping over 400 points (1.4%), the Nasdaq Composite and S&P 500 both falling around 1.3%. The selloff reflected the overall weakness in the market during the session.
NYSE Decliners Outnumber Advancers 12-1
Roughly 12 New York Stock Exchange-listed stocks were declining for every 1 advancing stock on Thursday. This further illustrates the broad-based downturn in the market.