The current stock market continued to trim losses Thursday afternoon, but weakness in semiconductor stocks kept the Nasdaq composite 0.1% lower, while two crumbling stocks hurt the IBD 50.
XA UBS analyst downgraded several chip-equipment stocks, warning that chip-gear spending is hitting a near-term peak. One of those, KLA (KLAC), plunged below the 50-day moving average in heavy trading, something that may result in a sell signal.
The S&P 500 and Dow Jones Industrial Average were flat after erasing losses. Volume on the NYSE and Nasdaq was tracking lower compared with the same time on Wednesday.
Dow component Boeing (BA) eased 0.5%. Triumph Group (TGI) is auctioning off a plant that makes airframes for the Boeing 747, threatening production of the wide-body jet. Triumph shares at one point rose nearly 0.7%.
The Innovator IBD 50 ETF (FFTY) lagged sharply, down 1.4% due to a pair of stocks that are plummeting today. Baozun (BZUN) plunged to a mid-March low after third-quarter sales missed expectations and the Chinese e-commerce company gave a weak outlook.
InMode Stocks Plummets
InMode (INMD), the maker of body-shaping devices, collapsed more than 21% at the intraday low of 41.49. The highflying stock started selling off shortly after noon ET. Headed into Thursday's trade, the Israeli company ranked No. 1 in the IBD 50.
There was no news, but InMode's website shows the company making a presentation today at the Canaccord Genuity MedTech & Diagnostics Forum. With a sharp loss in what could become the largest single-day volume in the stock's history since its Aug. 8 market debut, InMode is on track for a sell signal.
The energy sector was strongest Thursday, despite a drop in oil prices. Drilling, exploration & production, refining and oil field services groups were among the day's top 30 (out of 197).
The SPDR S&P Homebuilders ETF (XHB) fell 0.4%. U.S. existing-home sales in October came in slightly below economists' consensus forecast, at an annualized rate of 5.46 million units.
"Still, it was the third advance in four months and extends the upswing in housing market activity this year on the back of lower mortgage rates and continued job growth," Sal Guatieri, Senior Economist at BMO Capital Markets, said in a note. Housing supply remains light, he added.
Small caps lagged, as the Russell 2000 faced a 0.4% decline. The index is near resistance at the 1600 price level, although its chart appears to be forming a handle.
Ping Identity (PING) broke out of a cup-without-handle base in heavy volume. Shares of the cybersecurity company and IPO Leader slipped below the 21.10 buy point, but there was no sell signal. Ping has been rallying since it topped profit expectations on Nov. 13.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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