U.S. stock indexes flirted with trouble midday Thursday, as the indexes seemed poised to flash their first sign of institutional selling in the past dozen sessions.
X The Nasdaq stumbled 0.4%, while the S&P 500 dropped 0.2%. The blue-chip Dow Jones industrial average eased 0.1%, putting a nine-session win streak at risk. The small-cap Russell 2000 advanced 0.1%.
Volume in the stock market today was running slightly higher on both major exchanges compared with the same time in the previous session. If the indexes stay fairly deep in the red and volume remains higher than Wednesday's session, then that would constitute distribution — a sign of institutional selling. But at this point, that isn't assured.
One thing to watch is today's afternoon action and close. Does the picture get uglier as the day progresses, or do the indexes trim the losses?
In the IBD 50, a list of some of the best stocks in fundamentals and technicals, motor-home maker Winnebago Industries (WGO) jumped 1.85 to 41.25 in heavy volume. The stock is 10% above a 37.30 buy point. Revenue growth has accelerated for Winnebago. The company reported quarterly revenue gains of 5%, 15%, 64% and 75% in recent quarters.
Rival Thor Industries (THO), which has a product mix that leans more toward towable RVs, added 1.72 to 116.18 in quiet volume. The stock is about 6% extended from a 110.01 buy point.
Among secondary indexes, few were resisting the day's downward drift. The Dow Jones transportation average and the Dow Jones utility average each rose 0.3%. The KBW Bank index added 0.2%, offering polite applause for Federal Reserve Chair Janet Yellen's remarks Wednesday.
Yellen hinted at an interest-rate hike in December. CME Group's FedWatch Tool pegs the odds of a rate hike in November at 4%, but at 70.5% in December. A week ago, the December odds sat at 51.5%.
Economic News
First-time jobless claims rolled in at 259,000 — much better than the consensus number of 303,000 and under every estimate in the range.
The Philadelphia Fed's manufacturing survey for September rose to 23.8, above the highest estimate in the range (20) and well above the consensus target of 18.
Leading indicators for August swept in at 0.4%, topping the consensus for 0.2%.
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