U.S. stock indexes slipped near midday Thursday in surprisingly strong volume on the eve of a GDP report.
The Nasdaq clipped off 0.2%, the S&P 500 was essentially flat and the blue chip Dow Jones industrial average added 0.2%. Volume in the stock market today on both exchanges was tracking higher than Wednesday's levels.
Market risk remains elevated, with six distribution days on the Nasdaq and S&P 500. Signs of institutional selling like this make it a tough environment for stocks to make meaningful headway.
IBD'S TAKE: An investor shouldn't trash other investment strategies. Still, it's best to be aware of the arguments surrounding market timing and buy and hold.
The first take on Q3 GDP will be released Friday morning before the open. The Street expects 2.5% growth, which would be the best in the past five quarters. The range of estimates spans 2.2% to 3.1%.
While the indexes weren't doing much Thursday, a few stocks outperformed.
Big cap biotech Celgene (CELG) gapped up 6% in volume more than 450% above average. The company topped the Street's estimate on Q3 earnings by nearly 7%. Revenue came in more than 4% above expectations. The maker of therapies for cancer and inflammatory diseases also raised guidance.
Celgene's chart has work to do. The stock is about 19% off its 52-week high. The stock's most recent breakout came in July when Celgene cleared a base within a larger consolidation. However, the double-bottom pattern with a 108.60 entry lacked a prior uptrend of 30%, and the breakout failed.
Qualcomm (QCOM) gapped up 3% on news that the mega-cap company would acquire NXP Semiconductors (NXPI). Because of regulatory reviews, the deal isn't expected to close until late 2017. NXP rose 1%. Thursday's news had been rumored since late September and both stocks made big moves Sept. 29.
Pipeline play Antero Midstream Partners (AM) gapped up 5%, hitting a 52-week high. The stock is somewhat thinly traded, but has delivered triple-digit earnings gains in three of the past four quarters. Antero reported quarterly results Wednesday, beating the Street's estimates on the top and bottom line.
In economic news, first-time jobless claims were a bit more than expected. Durable goods orders for September missed the consensus target, but the prior reading was revised upward. Pending home sales in September topped the Street's estimate.
