stock market losses escalate; Drugmaker pops up when you upgrade

Major stock market indices added to the bad sentiment on Wednesday and are trading lower on Thursday afternoon, near their lows for the day. The market is still reeling from Fed Chairman Jerome Powell’s comments, which intensified fears of a recession.


The Nasdaq fell 1.5 percent. The S&P 500 lost 0.8%. The Dow Jones Industrial Average fell 0.4%. Small companies fared worse, with the Russell 2000 Index down 2.4%.

The Dow Jones is holding above the psychological 30,000 level, while the Nasdaq Composite remains above the 11,000 level.

The stock market adds to the losses in large volume

Volume on the New York Stock Exchange and Nasdaq rose sharply against the same time on Wednesday.

The Nasdaq Invesco Q-Trust Index (QQQ), which follows the Nasdaq 100, is down 1.4%. The 10-year US Treasury yield rose to 3.68%.

In Europe, the German DAX fell 1.8%, the Paris CAC 40 lost 1.9%, and the London FTSE 100 fell 1.1% by the close of the trading day.

Initial jobless claims for the week ending September 17 came in at 213,000 versus a consensus of 220,000, up 5,000 from the previous week’s revised figure.

Crude oil rose 0.6% to $83.41 a barrel. The SPDR Select Energy ETF (XLE) is up 0.6%.

Bitcoin fell 0.2% to $18,945.

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Stock Market Winners and Losers: Pharmaceutical Maker Rise, Data Company Fall

drug giant Eli Lilly (LLY) rose 4.1% after UBS upgraded the stock to buy from neutral, raising its price target to $363. Moonjaro, the company’s type 2 diabetes and weight management drug, is driving the speculative interest.

LLY stock is on a flat base with a buy point at 335.43. It ranks second in the Medical-Diversified group, and is ranked 93rd out of the 197 IBD industries it tracks. Lilly has a strong relative strength rating of 89.

linar (LEN) rose 2.4% after announcing mixed results for the third quarter of fiscal 2022, beating earnings but missing out on sales. The stock is trading below the 21-day exponential moving average on the MarketSmith chart.

oil transportation company scorpio vector (STNG) gained 2.5% on news of the company buying its common stock on the open market. It will also exercise the purchase option for a tanker that is currently chartered.

Scorpio has the best possible rating in terms of Relative Strength 99 and Composite Rating. It ranks ninth in the Oil and Gas Transmission Lines group, and ranks No. 3 in IBD industry groups.

Financial data company FactSet Research Systems (FDS) fell 7% after hitting sales but reported a failure in the fourth quarter of 2022. The stock was hit with heavy penalties on its biggest drop since June 2020, when it fell 7%.

Darden Restaurants The (DRI) fell 4.7% after reporting failed first-quarter sales of 2023.

Costco announces earnings after market close

costco (COST) fell 1.5% ahead of its 2002 fourth-quarter financial earnings report, due after the market closes. The stock is down about 7% since the start of September.

COST stock is expected to earn $4.17 per share in the fiscal fourth quarter, on sales of $72 billion. The company doesn’t provide guidelines, so investors will be looking for clues on how to set expectations for the holiday shopping season.

IBD 50 stock on the go: tanker stock leads the way

The Innovator IBD 50 ETF (FFTY) sank 2.8%, crashing more than the major indices in the stock market today.

Huntington Ingalls Industries (HII) increased 1.9% in heavy volume as a result of the delivery of three Underwater Vehicles (UUVs) to the British Royal Navy.

humana (HUM) gained 1.8% after Morgan Stanley upgraded the stock to overweight with a $549 price target. Michael Wilson, chief equity strategist at Morgan Stanley, noted that managed care stocks could be a potential bright spot in the economy, specifically mentioning Humana and United Health Group (United Nations), which rose 0.9%.

Tekai tankers (TNK) is up 1% and is trading at an extended level first recorded on Sept. The stock has received the best possible relative strength rating of 99.

Talos Energy (TALO) fell 5.6% after the company entered into an agreement to acquire privately owned EnVen Energy in a cash and stock transaction worth $1.1 billion.

EnVen is an explorer, developer and producer of oil, gas and related hydrocarbons in the Gulf of Mexico.

Earthquake (SWAV) fell 9.3% after two of its executives reported internal stock sales.

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