Stock Market In Consolidation; Energy Sells Off


Stock market indexes consolidated at lower levels on Wednesday but orderly profitmaking showed few signs of buyers’ exhaustion. Energy futures slid for the second day in a row, dragging sector stocks and funds to two-week lows.


The Russell 2000 and the S&P 500 are trading flat at this hour while the Dow Jones Industrial Average has shed 0.2%. The Nasdaq composite is showing minor strength, higher by less than 0.1%.

NYSE volume has surged more than 9% compared to the same time on Wednesday, while Nasdaq volume is 4% below yesterday’s levels.

Weekly jobless claims rose to 260,000 from 254,000 in the previous week, meeting economist forecasts. Challenger job cuts reported 25,810 layoffs in July, a decline from 32,517 in June. Taken together, the job market is easing at a slow and manageable pace, at least so far in this Fed tightening cycle.

Health care giant McKesson (MCK) beat fiscal Q1 top and bottom line estimates, posting a profit of $5.83 per share. It also raised 2023 EPS guidance above consensus. The stock has rallied nearly 5% on the news and is probing the 340.04 buy point. The 5% buy zone extends to just above 357.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32741.87 -70.63 -0.22
S&P 500 (0S&P5) 4154.94 -0.23 -0.01
Nasdaq (0NDQC ) 12708.20 +40.04 +0.32
Russell 2000 (IWM) 189.76 +0.01 +0.01
IBD 50 (FFTY) 28.91 +0.08 +0.28
Last Update: 1:36 PM ET 8/4/2022

MCK is trading at an all-time high while holding a bullish 97 Composite Rating and 91 EPS Rating.

Price action is benefiting from membership in the well-performing medical-wholesale drug/supply industry group.

Crude Oil Slices Through $90

Western Intermediate crude oil is trading lower by more than 2%, undercutting $90 per barrel. The sell-off has also violated the July 14 low at $88.23, dropping to $87.96 per barrel. This marks the lowest price since Feb. 3.

Energy Select Sector SPDR (XLE) has fallen 1.8%, the worst performance among the 11 S&P sector ETFs trading on the stock market. The ETF reversed at 50-day moving average resistance on Monday.

Top Earnings After The Close

FactSet consensus expects Amgen (AMGN) to report second-quarter earnings of $4.39 per share on $6.52 billion in sales after the close. The stock is trading 5% below the weekly buy point at 258.55 in a flat base.

Rangebound action in the last five months has taken a toll on the daily RS Line, which has dropped to a three-month low. Amgen is a member of the market-leading biotech industry group.

Monster Beverage (MNST) consensus is looking for a profit 70 cents per share on $1.61 billion in sales. The stock probed the 98.83 buy point of a 12-month double bottom last week and sold off. It’s trading 3% below the buy point ahead of this evening’s confessional.

Thursday Stock Market Highlights

No. 2 on the IBD 50, New Fortress Energy (NFE) posted a loss for the quarter and is trading flat after early buying interest faded. The stock is forming a cup base with a 52.47 buy point. It’s now trading about 4% below that entry.

The price of natural gas remains firm on rising demand in Europe. The NG futures contract is currently trading at $8.18, lower by 1.0%.

July 29 IBD Stock Of The Day Exxon-Mobil (XOM) fell 2.5% to the lowest in nearly two weeks. The 96 Relative Strength Rating looks solid but the RS line has been falling since the start of August and is now at a three-month low.

Wednesday’s IBD 50 Stock To Watch Shockwave Medical (SWAV) tagged the 223.25 buy point of a double-bottom base on Wednesday and is hovering just below that level in today’s session. The stock has been riding the 10-day moving average since mid-July.


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