The Nasdaq 100/Invesco (QQQ) jumped 0.85% Thursday, while the Russell 2000 fund (IWM) fell 0.86%, and the Dow Jones and S&P 500 closed around flat. Breadth was negative with around 3,200 gainers to 4,250 decliners, but there were almost 900 stocks hitting new highs.
There was a continuation of the rotational action into the big-cap technology and FATMAAN names that began on Wednesday, but trading was sloppy and a little hesitant. Small caps started the day poorly, but improved steadily. By the close, the list of 10% movers had expanded nicely, and traders were still actively hunting for the next hot special purpose acquisition company or low-priced mover.
Someone with a bearish inclination will read too much into a day like this. It was just some routine consolidation combined with rotational action. It is healthy and normal and is exactly what you like to see as an uptrend extends.
Earnings from IBM (IBM) and Intel (INTC) are on the wires. IBM is reacting poorly, but INTC is up after its numbers were mistakenly reported a few minutes too early. IBM is a serial disappointment, so it is no big surprise. INTC is better than expected, but the stock has run up, and we'll see how much of a 'sell the news' reaction there might be.
The good news is that speculative traders are still quite active, and they weren't scared away by some soft action. Next week when more earnings news hits, the trading is going to be more chaotic.
Have a good evening. I'll see you tomorrow.