Stocks Mixed After GDP Data; Software Firm Breaks Out As Nasdaq Falls Further

The Dow Jones Industrial Average and other indexes struggled to get to their feet Thursday amid fresh economic data after Wednesday’s brutal sell-off. Earnings movers in morning trade on the stock market today were IBM (IBM), KLA (KLAC) and ServiceNow (NOW).

decisions on interest rates impact both the economy and the stock market. IBD News Editor Ed Carson shares how reactions by each can differ and what investors need to know.” data-nosnippet=”true” data-permalink=”https://www.investors.com/ibd-videos/videos/fed-interest-rate-cuts-hikes” jw-video-key=”cReAVOpP” vid-authors=”MEREDITH HEYMAN” vid-cat=”Industry Insights” vid-date=”03/20/2024″ vid-date-tmsp=”1710938202″ vid-dom-id=”9029322-66a26c6fa20ea” vid-id=”9029322″ vid-image=”https://10xwealthreport.com/wp-content/uploads/2024/07/echo/Stock-FedBldg-flag-adobe-640×360.jpg” vid-name=”Fed Interest Rate Decisions: Market Influence And Investor Psychology Impact Of Cuts And Hikes” vid-repeat=”1″ vid-top=”” vid-url=”https://content.jwplatform.com/manifests/cReAVOpP.m3u8″ vid-width=”100″> ↑ X NOW PLAYING Fed Interest Rate Decisions: Market Influence And Investor Psychology Impact Of Cuts And Hikes

The Dow managed a gain of 0.4% while the S&P 500 edged higher, testing a key level of support in the stock market today. The Nasdaq dipped 0.1% after breaking support at the 50-day moving average for the first time since May 2. And small caps on the Russell 2000 rose 1.3% after Wednesday’s 2% loss.

Volume on both the New York Stock Exchange and the Nasdaq rose compared with the same time on Wednesday.

The Innovator IBD 50 (FFTY) exchange traded fund fell 0.5%. The yield on the benchmark 10-year Treasury note fell seven basis points to 4.22%.

Stock Market Today: GDP Beats Estimates

The Labor Department said second-quarter GDP rose 2.8% on an annual basis, compared with Econoday estimates for 1.9%. A second reading with more data is scheduled for Aug. 29.

Meanwhile, orders for durable goods fell sharply by 6.6% in June after rising 0.1% in May. Economists had expected a small gain of 0.3%. Further, initial unemployment claims for the week ended July 20 fell to 235,000, from the prior week’s 245,000 and below views for 238,000.

The data comes ahead of the Federal Reserve’s meeting next week when traders expect rates to remain unchanged. A first cut is expected in September, according to CME FedWatch Tool.

Dow Jones Icon Rises

IBM (IBM) rose past a buy point of 189.47 on the stock market today after second quarter revenue and earnings exceeded analyst estimates. With a surge of more than 3%, it was the biggest gainer in the Dow. Other Dow tech stocks were mixed as Microsoft (MSFT) and Apple (AAPL) fell while Salesforce (CRM) gained.

Outside the Dow, earnings moved ServiceNow (NOW) to break out with a 12% jump after earnings for the second quarter beat analyst views while revenue also edged past expectations. Shares were in a long consolidation and have gapped up above a buy point of 815.32, according to IBD MarketSurge.

United Rentals (URI) staged a recovery from Wednesday’s fall and rose more than 2% after second quarter results late Wednesday.

Among chip stocks, KLA (KLAC) rose in the stock market today after fourth quarter results came in above views. The chip leader also raised its outlook for the current quarter. But the stock is trading below the 50-day moving average.

In health care, Mira Pharmaceuticals (MIRA) soared more than 16% after new data suggested its drug candidate for treating neurological disorders may have fewer side effects. The company plans to submit an application for FDA investigation later this year.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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