The Dow Jones Industrial Average, dinged by a 13-point plunge in Boeing (BA) in the face of more woes regarding its 737 Max jet fiasco, still managed to beat the Nasdaq composite with a loss of 0.5% during a rough session for stocks today. Five of the Dow Jones' 30 components rose 1 point or more. The Nasdaq dropped 1% despite a bullish rebound of 2.7% in heavy turnover by FANG stock Netflix (NFLX).
XVolume rose on both main exchanges, according to early data.
The significant drop by the major indexes in higher turnover represents distribution, or an instance of intense professional selling. A rash of such distribution days over a limited period of time can derail a confirmed market uptrend.
To get the latest update on IBD's current outlook for growth stocks, please read The Big Picture on a daily basis. Pay particular attention to the Market Pulse table inside this column.
You can also do an instant check of the outlook — "confirmed uptrend," "uptrend under pressure," or "market in correction" — at the Market Trend section of Investors.com.
The S&P 500 fell 0.5%. Weakness in Tesla (TSLA) (which posted a sharper-than-expected Q2 net loss late Wednesday) and other automakers, as well as big drops in oil and gas, mortgage services, consumer lending, generic drug and airline stocks, weighed on the large-cap benchmark.
The yield on the benchmark U.S. Treasury 10-year bond rose 3 basis points to 2.08%, nearly matching this month's high of 2.09%. U.S. crude oil futures edged up nearly 0.1% to $55.93 a barrel.
Spirit Airlines (SAVE) nose-dived more than 23% to 42.01, hitting levels not seen since August 2018, in monster trade. The company reported a 52% surge in Q2 earnings to $1.69 a share, edging the consensus view by 4 cents. Revenue grew 19% to $1.01 billion. But the airline cited rising costs per available seat mile ex-fuel (CASM ex-fuel) and other factors.
"Admittedly, we were over-aggressive in our assumptions about weather disruptions this year which, when coupled with our changes, exacerbated the level of flight disruptions we've been experiencing," CEO Ted Christie said in a news release.
The small-cap S&P 600 fell harder than its large-cap sibling, losing 1%. The S&P 600 had gained a combined 2.6% in the prior two sessions, though. The S&P 600 remains above both its 50- and 200-day moving averages, a new bullish development.
Innovator IBD 50 (FFTY) ETF, up nearly 1.2% on Wednesday, gave back the lion's share of that gain on Thursday with a 0.9% loss.
At 35.47, the ETF continues to outperform most equity indexes with a gain of 28.6% since Jan. 1. Over the same time frame, the Dow Jones 30 is up 16.3%, and the S&P 500 up 19.8%.
Beyond Dow Jones
Yeti (YETI) hit a new high of 38.11, but then reversed for a 1.8% loss.
IBD Stock Of The Day featured Yeti on Tuesday, the same day as its new breakout from a cup with handle pattern.
The 5% buy zone for the trendy, premium-quality outdoor gear maker goes up to 36.09.
Read more about Yeti stock chart analysis in this New Highs column.
3 More Growth Stocks To Watch
Sleep Number (SNBR) is making a slow yet steady recovery after a dramatic drop in April following its Q1 results. The stock edged up a touch on Thursday, rising for a fourth straight session. Yet at the day's high of 42.60, the smart bed firm still traded 14% below the left-side peak of a new cup-shaped base.
In other words, the home furnishings retail group leader is still not yet close to a proper buy point.
Square (SQ) showed outperformance, falling less than 0.2% as the financial payments innovator and technology provider for small and medium businesses works on the handle in a long cup base. The latest correction since Square's peak of 101 in October has reset the base count, a good thing.
Twitter (TWTR), the popular news and social media platform, dropped 1.3% in heavy volume. The big cap tech has been building a new base. Twitter fell 1.3% in the regular session. It remained above its key 50-day line, but it closed below its 39.07 buy point.
Twitter reports Q2 results on Friday. The Street sees earnings growth slowing, and that's due in part to humongous year-over-year increases seen in the past several quarters.
Earnings rose 11%, 73%, 129%, 113%, 110%, 63% and 131% vs. year-ago levels.
Jack Dorsey serves as CEO of both Square and Twitter. Both stocks ran into trouble not long after Dorsey appeared on the front cover of Barron's weekly magazine last summer. Excessive or highly bullish media coverage of a star CEO can provide a contrarian signal that a stock is ready to correct sharply in price.
Go to the Technology section and News section at Investors.com for the latest earnings results of key stocks to watch. See the IBD Earnings Calendar for a full list of companies set to report results.
Please follow Chung on Twitter at both @SaitoChung and @IBD_DChung for more on growth stocks, chart analysis, breakouts and sell signals.
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