The stock market sold off early Thursday but clawed back some of its lost ground in late trading. Market action got off to a rocky start after the House Intelligence Committee's release of the whistleblower complaint it received on Wednesday regarding President Donald Trump. In response, Trump tweeted that "markets would crash" as a result of the impeachment inquiry.
XThat was enough to take down many stocks for the day, including new IPO Peloton Interactive (PTON). But a few recent breakouts are holding up well. Global sports apparel name Nike (NKE) added to Wednesday's big gain, and electronics giant Jabil (JBL) gave back less than 0.3% following three straight sessions of stout gains.
Among major stock market indexes, the sell-off was greatest for the Nasdaq, which was down 0.6%. The small-cap Russell 2000 Index fell 1.1%. The Dow Jones Industrial Average declined 0.3%, while the S&P 500 drooped 0.2%.
Volume was mixed Thursday, with NYSE turnover up 0.2%, but Nasdaq off 4.8%, according to early data.
Few political analysts believe Trump will be ousted from office. But the impeachment process could have an impact on both Trump's administration and his 2020 presidential campaign. With even greater political turmoil and uncertainty likely, markets have responded by selling off.
Impeachment Prospects Poor
Even so, Predictit.org, the market prediction site that uses investors' bets on political events to determine their odds of happening, shows that the likelihood of Trump being impeached jumped from just 29 cents out of a dollar to 60 cents in the last week.
But the odds of the Senate convicting Trump on impeachment charges stand at 16 cents, and falling.
In market news, IPO Peloton traded for the first time, pricing its 40 million shares to open at 29 a share, at the top of its anticipated 27-29 offering price. The offering raised about $1.16 billion. But in trading Thursday, Peloton stock sank 11% from that new offering price to end at 25.76.
Nike jumped 1.5% a day after it broke out of a flat base above its 89.97 buy point in heavy volume. Jabil broke out of a consolidation pattern on Tuesday, and didn't look back. It also rose strongly on Thursday, and is now extended 11% above its correct buy point.
Also in the news, after fast-food giant McDonald's (MCD) said it was testing Beyond Meat (BYND) plant-based patties in 28 Canadian McDonald's stores, Beyond Meat shares surged 11.6%. McDonald's rose 0.1%.
Among exchange traded funds, the Innovator IBD 50 ETF (FFTY) rose 0.1% late in the day to erase an early sell-off.
Stock Market News: IBD 50
A handful of notable stocks on the IBD 50 list showed gains, pushing up the overall index.
Brazilian online payment company PagSeguro Digital (PAGS) rose 1.9%. PagSeguro stock has pulled back after a powerful run-up in price following its breakout from a seven-week cup base in late May. In recent weeks, it has repeatedly tested the 50-day moving average on the downside, but broke above that key test on Thursday.
European-based provider of IT services to Latin American companies Globant (GLOB) jumped 2.6%. Ranked No. 1 in its industry group, Globant stock has a highest-possible 99 Composite Rating from IBD, putting it in the top 1% of all stocks. However, after recent declines, it has mostly traded below its 50-day moving average since mid-August.
Hardware and software computer services company CDW (CDW), with a 98 Composite Rating, moved back into the 5% buy zone above a 122.92 entry on Wednesday. It solidified that gain on Thursday, rising 1.6%.
Innovative Industrial Properties (IIPR), a REIT that invests in medical-cannabis-related properties, soared 4.1%. The company, with a 94 Composite Rating and an 80 EPS Rating, returned Thursday to the IBD 50 watchlist of top growth stocks. The U.S. House of Representatives just passed a bill that would give cannabis-related companies access to banking services, but the ultimate fate of the bill remains murky.
Meanwhile, the Innovator IBD Breakout Opportunities ETF (BOUT), made up of stocks close to a breakout, fell 1%.
Stocks On The Move
Despite the rocky market, a number of stocks on IBD's Stocks On The Move list made impressive gains.
Bruker (BRKR), a developer of scientific instruments, jumped 2.6% in above-average turnover and regained its 50-day moving average. The stock plunged nearly 18% in four days of trading in early August, but since then has steadily climbed, regaining about half its loss.
Bruker carries a 97 Composite Rating and a 95 EPS Rating from IBD. IBD Stock Checkup notes that the stock ranks No. 2 in both proprietary measures within the Medical-Systems/Equipment Group.
Software and networking equipment distributor Synnex (SNX) rose sharply for a second straight day after reporting a higher-than-expected 31% EPS gain in its fiscal Q3. Synnex stock blasted out of a double-bottom base with a 103.69 buy point, and is now extended in price above the 5% buy zone.
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