Stocks Edge Lower, But Utilities, REITs Lead; Nvidia Reverses Higher

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The major indexes closed lower Thursday in a session that saw few highlights other than the continued gyrations of Nvidia (NVDA).

The Nasdaq, S&P 500 and Dow Jones industrial average all fell 0.1% or less, closing off session lows. The mild index declines were somewhat of a relief after Wednesday's sharp losses. The Russell 2000 gained nearly 0.2%.

Volume was lower on both main markets, according to early figures. Winners beat losers by 7-to-5 on the NYSE and by 9-to-8 on the Nasdaq.

Verizon Communications (VZ) led the Dow with a 0.6% crawl. A Wells Fargo analyst warned that Verizon's earnings before interest, taxes, depreciation and amortization from its wireless business in Q4 will fall because of promotional activity.

Only a single stock climbed in unusually high volume. Nvidia reversed higher after erasing a loss of more than 4%. Although it was an impressive bounce, the stock has been flashing signs of a climax top.

The graphics and Big Data processing chip company is extremely extended from a March breakout and from pullbacks to the 10-week moving average that helped keep shares soaring this year.

Interest-rate-sensitive stocks led the market Thursday. Utility and real estate investment trusts were among the top 15 of 197 industry groups. The 10-year Treasury note was little changed, though, with the yield down a few basis points.

Banking and steel stocks — two sectors that have led the market the past two months — were among the biggest losers. Biotechs and automakers also lagged.

Manitowoc Foodservice (MFS) soared 5% to 18.94 as it broke out of a cup-with-handle base. The stock is in buy range, up 3% past the 18.31 buy point. The manufacturer of equipment for the food service industry went public in March after it was spun off from crane maker Manitowoc (MTW).

But volume was merely average for a breakout, which undermined the critical move. Moreover, most of the stocks that have broken out from bases the past few weeks are below buy points or have stalled around their entries.

The IBD 50 was 0.2% lower. AMN Healthcare Services (AMN), one of its components, slumped 1.9% as it's forming a cup-with-handle base with a 40.50 buy point. AMN is the the largest health care staffing provider in the U.S., and has a perfect 99 EPS Rating despite a slowdown in EPS growth the past couple of quarters.

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