A midday bounce faded, leaving the stock market near session lows at Thursday's close and with new signs that recent selling has not run its course.
X The Nasdaq tumbled 1% and the S&P 500 0.9%, while the Dow Jones industrial average fell 0.7. Small caps, which have had a rough year, lost 1.5%. The S&P closed below its 50-day moving average for the first time since May 17 — a change that may herald further weakness.
Volume rose on the Nasdaq and fell on the NYSE, according to early numbers. Losing stocks led winners by more than 4-to-1 on the NYSE and by 10-to-3 on the Nasdaq.
General Electric (GE) was a big drag on the Dow after tumbling to the lowest price since October 2015. GE slid 4% after a JPMorgan analyst cut the price target to 22 from 27, citing uncertainties about the company's future. Also, the EU Competition Commissioner warned she may penalize GE, Germany's Merck and Japan's Canon for violating merger rules.
Among Thursday's worst-hit stocks was Yum China (YUMC), the Chinese business spun off from fast-food operator Yum Brands (YUM) last year. It collapsed 12% in huge volume, breaking below its 50-day moving average.
Yum China reported earnings late Wednesday that topped some estimates, but sales missed views. EPS rose 29% to 27 cents. Revenue was $1.594 billion, below estimates of $1.632 billion. Same-store sales climbed 0.3%.
Chip stocks continued to give the market something to cheer, and would be a sector to research if the market could shake off its sluggishness.
Nvidia (NVDA) is starting to rise from support at the 50-day moving average. The chip designer, however, has already made a huge advance since the autumn of 2015.
Macom Technology Solutions (MTSI) also is getting support at the 50-day line. The chipmaker has been volatile since it made a new high April 25, yet upside volume outweighs down volume.
RELATED:
Yum China Misses Sales Views, But Mobile Payments, Deliveries Boom
Self-Driving Alliances Multiply: Nvidia, Baidu Deepen Their AI Pact
