Stock loses momentum, but even higher; Solar stocks on fire

Major stock indices rose slightly in early trading Thursday morning, with the Russell 2000 small cap index outperforming major benchmarks.




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The Nasdaq composite is up 0.1% so far, the same as the S&P 500, while the Dow Jones Industrial Average is up 0.1%.

The Russell 2000 small-cap ETF (IWM) is up 0.4%, slightly outperforming the Nasdaq 100-tracking ETF Invesco QQQ Trust (QQQ), which is trading 0.2% higher.

NYSE and Nasdaq volume is lower, compared to the same time on Wednesday.

The SPDR Select Energy ETF (XLE) gained 2.2%. Crude oil is trading 1.7% higher to $89.20 a barrel, but natural gas lost ground, 0.1% lower, but still in the $9 range.

Bitcoin futures are quiet, rising 0.8% to $23,425.

The FTSE 100 Index is up 0.1%, the CAC 40 Index 0.2% and the DAX Index 0.4% in the European session.

The yield on the 10-year Treasury has fallen to 2.85%. Markets now see a 61.5% chance that the Fed will hike rates by 50 basis points in September and a 38.5% chance of a 75 basis point hike.

Unemployment claims show signs of improvement

In the week ending August 13, 250,000 first-time jobless claims were reported, against 65,000 expectations, a positive sign for the labor market. Initial claims were down 2,000 from the 14,000 increase last week.

The Philadelphia Fed Manufacturing Index surprised investors with a positive reading of 6.2, compared to a consensus of -5.0. This statistic is used as an indicator of manufacturing trends.

Stock Market Today: Retailers Report Mixed Earnings

BJ’s Wholesale Club (BJ) is up 7% on heavy volume in the first hour of Thursday’s stock market, after reporting a second-quarter gain. The stock emerged from a double bottom base and is above its previous buy point of 71.10, in the 5% buy zone.

BJ’s has impressive fundamentals, including a Composite Rating of 96 out of 99, a rating of 95 EPS, and greater mutual fund holdings.

Kohls (KSS) plunged 5.3% on a second-quarter miss in earnings per share and a beat on sales, though comparable store sales fell 7.7%. The stock is now below the 50-day moving average.

Management has revised its full-year sales forecast to a decline of 5% to 6%, compared to the May forecast of flat to 1% annualized growth.

Cisco Systems (CSCO) is up 6.4% after reporting a beat on both Q4 2022 revenue and earnings per share. Management gave a positive outlook for the coming quarter.

Meme Stock changes course, Solar Company breaks out

Bed, bath and more (BBBY) is down 26% after GameStop (GME) Chairman Ryan Cohen announced his intention to sell his entire holding of 9.45 million BBY shares. The stock has had a massive run up as meme stock traders caused several trading halts.

Canadian solar energy (CSIQ) is up 16.7%, breaking out of a shaky base and reaching a buy point of 43.24 on the MarketSmith chart. The company reported better-than-expected second-quarter earnings per share and sales, while pushing ahead of expectations for third-quarter and full-year 2022 sales.

Stock Market Today: IBD 50 Stocks on the Move

The IBD 50 ETF (FFTY), a measure of growth stocks, is up 0.5%, outperforming the major indices.

CVR Energy (CVI) tops the IBD 50 list, skyrocketing 3.7% and staying above the 50-day moving average.

Short content (SNPS) stocks have pulled back 1.1% after a gain earlier in the session. The company reported better-than-expected fiscal results and third-quarter sales on Wednesday evening. The stock price is above the buy point of 377.70 and in the 5% buy zone on the MarketSmith chart.

Synopsis has an impressive Composite Rating of 98 and an EPS rating of 95.

Chilean lithium and chemical company Sociedad Quimica y Minera (SQM) is down 6.8% after reporting lost earnings per share for the six months ended June 30, 2022, but a blow to sales.

SQM is in a deep cup base with a buy point of 115.86 on the chart. The company has earned a perfect 99 Composite Rating.

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