US stocks slipped on Thursday despite a continuation of strong earnings reports from Nvidia, Macy’s and Kohl’s.
The Dow fell 252 points, or 0.7%. The S&P 500 lost 0.2% and the Nasdaq Composite slipped 0.4%.
Trading was hacked this week with the main averages mostly swaying around the flat line, but the S&P and Nasdaq are still on track for a positive week and sit less than 1% of their records. The Dow is 2.2% of its record.
Nvidia’s shares advanced nearly 10% after hitting on the top and bottom lines of its quarterly results and issuing a bullish revenue forecast for the current quarter ending in January. The chip maker saw a 55% gain in data center sales from the same period a year ago with a 42% increase in gaming, its largest market.
Those gains helped lift other chip stocks trading. Advanced Micro-Devices gained more than 4%. Qualcomm and Micron Technology added 2%. In particular, GlobalFoundries has seen great pop music after revealing that it has entered into a partnership with Ford to help the automaker increase its chip supply. It was last about 4% higher.
Retail continued its big winning week. Shares of Macy’s and Kohl’s started the day off crushing quarterly profits and earnings, as did their peers, who reported earlier in the week.
Macy’s said sambucic sales grew 35.6% and digital sales increased 19%. It also spurred the launch of a digital marketplace next year, and said 41% of its 4.4 million new customers in the fourth quarter came through the digital channel. The company’s shares jumped nearly 20%. Kohl’s similarly saw gains in same-store sales growth and digital. Its shares added more than 6%.
Elsewhere, Deere has seen its shares rise more than 2% after it came to a resolution with workers who have been on strike since October 14th.
Dow component Boeing also saw its shares rise 1% after an upgrade by JPMorgan, which said the aerospace giant has a significant advantage as it explains several problems that have plagued the company.
Going in the other direction, Cisco Systems fell 8% due to weaker revenue leadership and revenue failure. Kraft Heinz shares also fell more than 3% after the company announced a secondary offering of common shares.
Initial filings for unemployment insurance fell slightly to 268,000 for the week ending Nov. 13, the Labor Department reported Thursday. That was the lowest level since March 2020, and the seventh straight weekly decline. Economists surveyed by Dow Jones expected them to fall to 260,000, compared to the adjusted 269,000 claims of the previous week.
On Wednesday, the Dow Jones Industrial Average lost 211 points, dragged down by a 4.7% loss in Visa shares. The S&P 500 dipped 0.26%. The Nasdaq Composite ticked 0.33% lower, despite most mega-cap technology companies closing in the green.
The small-cap benchmark Russell 2000 was the relative underperformer on Wednesday, dropping 1.2%.
“Recent economic reports remain strong, but today’s market action highlights that it is already discounting another Covid cycle,” said Jim Paulsen, chief investment strategist at Leuthold Group.
“Concerns about Covid have also led to a decline in the 10-year bond yield for the first time in 6 days and have kept downward pressure on commodity prices including another significant drop in oil prices. If inflation continues to rise while another Covid rise again slows real economic activity ., we may find out how the stock market handles a pseudo-stagflation episode, ”he added.