The stock market today shook off a morning slump and closed with the Nasdaq composite modestly higher and the S&P 500 a fraction lower, as some key areas of the market took heavy blows.
A last-minute drop cost the S&P 500 a minor gain, and the Nasdaq rose 0.2% as the latter nearly made a new closing high. The composite rose despite a broad sell-off in semiconductors. The chip designer industry group lost more than 3% and chipmakers about 2% after a few earnings-related sell-offs.
The Dow Jones Industrial Average fell 0.5%, a loss that rested primarily on 3M (MMM). The manufacturing giant cut its forecast again and announced 2,000 job cuts amid a restructuring. Shares plummeted 13% to the lowest level since mid-January.
3M's rout more than offset good gains in other Dow components, including Microsoft (MSFT). The company surged to a record high Thursday after it posted better-than-expected results and gave positive guidance.
Microsoft's market valuation topped $1 trillion at session highs, solidifying the company's highest market capitalization. The stock has been a winner since it broke out past a 108 buy point in February.
Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, rose 0.4% and outperformed the broad Nasdaq. Microsoft, Facebook (FB), and Comcast (CMCSA) — three of the largest Nasdaq components — rose solidly on earnings reports.
With Facebook rallying on its latest results, the S&P communications services sector was Thursday's best, up 1.1%.
Health Care Up, Cyclicals Down
Health care rose 1% as the sector tries to rebound from a relatively weak first-quarter performance. The transportation, industrial and materials sectors were the poorest in a broadly weak day for cyclicals. 3M's woes no doubt contributed to that.
Earnings news sparked some breakouts, as it's been occurring all week.
ServiceNow (NOW) broke out of a flat base, gapping above the 251.75 buy point in heavy trading after a strong Q1 report. The stock, which is in IBD Leaderboard, gave back some gains but still closed above the entry.
West Pharmaceutical Services (WST) gapped past the 117.48 buy point of a cup with handle, and volume was above average.
Juan Carlos Arancibia is the markets editor of IBD. Follow him at @IBD_jarancibia
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