Stocks saw a mixed score card weaken into losses early Thursday, as more Q1 results rolled in. After the market's close, two heavyweights — chipmaker Intel (INTC) and online marketplace Amazon.com (AMZN) — will release quarterly results.
XThe Nasdaq eroded into a 0.2% decline early Thursday, while the S&P 500 sagged 0.4%. Blue chips in the Dow Jones industrial average were mostly down as the index flopped 0.9%. The small cap Russell 2000 fell 0.6%.
Volume inched up on both major exchanges.
Companies that missed on Q1 results paid a heavy price Thursday.
United Parcel Service (UPS) dropped 6% after quarterly earnings and revenue came in lower than the Street estimated. Dow Jones component 3M (MMM) skidded 10% after missing on the top and bottom lines. World Wrestling Entertainment (WWE) stumbled 10% after failing to match expectations on earnings and revenue.
Bullish Moves
On the bullish side, cable operator Comcast (CMCSA) popped 2.5% higher on strong earnings despite revenue that fell short. The stock is in the 5% buy zone after a low-volume breakout.
Southwest Airlines (LUV) rose 2%. The airline beat views on earnings despite hits from the federal government shutdown and 737 Max jet groundings. The problems with the 737 Max prompted Southwest to cancel more than 10,000 flights in Q1.
Meanwhile, Microsoft (MSFT) gapped up about 4% in huge volume after sailing past estimates on earnings and revenue. The stock touched the 20% to 25% profit-taking zone Thursday. In most cases, a stock that advances 20% to 25% from a valid breakout should be sold.
Action In ETFs
Among exchange traded funds, Innovator IBD Breakout Opportunities (BOUT) dropped 0.8%. The Innovator IBD 50 Fund (FFTY) also slid 0.8%.
The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.1% as it moved above its 5% buy zone.
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