Stock Market Today: Another Apple Stock Slump Drags on Nasdaq
The tech-heavy Nasdaq fell for a fourth straight day as Apple sold off again on China worries.
Stocks opened lower Thursday after an unwelcome update on the labor market. Two of the three main benchmarks stayed in negative territory through the close as mega-cap tech titan Apple (AAPL) extended its recent slump.
However, one name managed to muscle into positive territory, as chipmaker Intel (INTC) extended its longest win streak in years.
Ahead of the bell, the Labor Department said initial jobless claims unexpectedly declined last week, falling by 16,000 to 216,000 – the lowest level since mid-February. This was the fourth consecutive week unemployment claims have dropped. Continuing claims also tumbled, by 40,000 to 1.68 million.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We've seen this movie before: Weekly jobless claims once again surprise to the downside, underscoring the labor market's resilience," says Mike Loewengart, head of model portfolio construction at Morgan Stanley. "Employment continues to be a thorn in the side of the Fed, which has made softening the jobs market the cornerstone of its inflation battle."
While the Fed is likely to keep interest rates unchanged at its upcoming meeting, the central bank is "nowhere close to backing away from a higher-for-longer stance," Loewengart adds.
Apple slump continues, C3.ai sells off after earnings
In single-stock news, Apple continued its recent decline, slumping 2.9% after a Bloomberg News report suggested China could widen its ban of iPhones to include state-owned companies and government-backed agencies. AAPL stock is now down more than 6% for the week.
Elsewhere, C3.ai (AI) stock plunged 12.2% after earnings. In its fiscal first quarter, the enterprise artificial intelligence (AI) software provider reported a loss of 9 cents per share on revenue of $72.4 million. Both figures beat expectations, as did C3.ai's fiscal Q2 revenue guidance. However, C3.ai's gross margin of 68.6% missed analysts' estimates as the company ramped up artificial intelligence investments.
Despite today's earnings reaction, Wedbush Securities analyst Daniel Ives says C3.ai "is well-positioned to grab a significant portion of the generative AI market" through its partnerships and enterprise AI applications. And the company's "near-term pain" will eventually translate into "long-term gain," Ives adds.
The analyst has an Outperform (Buy) rating on C3.ai and a price target of $42, representing implied upside of more than 50% to current levels.
At the close, the rate-sensitive Nasdaq Composite was down 0.9% at 13,748 – its fourth straight loss – while the S&P 500 was off 0.3% at 4,451. The Dow Jones Industrial Average managed to add 0.2% to 34,500 on strength in Intel. The semiconductor stock jumped 3.2% to close higher for a ninth straight day, marking its longest daily win streak since December 2020.
Related content
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)A little oversight or automation can keep money in your pocket.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market Today
The S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
Dow Soars 588 Points as Trump Retreats: Stock Market TodayAnother up and down day ends on high notes for investors, traders, speculators and Greenland.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Small Caps Can Only Lead Stocks So High: Stock Market TodayThe main U.S. equity indexes were down for the week, but small-cap stocks look as healthy as they ever have.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
