Dow Jones Drops 240 Points As Cisco Weighs; Nvidia Stock Rallies To

Stocks were mostly lower early Thursday, with the Dow Jones Industrial Average down over 200 points thanks to an earnings-fueled dive by Cisco Systems.

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The Nasdaq slipped 0.3%, the S&P 500 gave up 0.2% and the Dow Jones industrials fell 0.6% in the stock market today. Small caps tracked by the Russell 2000 pared losses to 0.6%. Volume was mixed, higher on the Nasdaq and lower on the NYSE, vs. the same time Wednesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) slipped to narrow losses. The IBD 50 ETF is testing its 21-day exponential moving average. The Nasdaq 100-tracking Invesco QQQ Trust (QQQ) traded up 0.1%. Meanwhile, the VanEck Semiconductor ETFSMH rallied 1.7%.

Early Thursday, the Labor Department reported jobless claims rose to 268,000 the week ended Nov. 13. That was higher than Econoday’s estimate for a decline to 261,000 filings, from an upwardly revised 269,000 the prior week.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has been slowing down as vaccinations rise.

Globally, Covid-19 cases are approaching 256 million, with over 5 million deaths, according to Worldometer. In the U.S., cases have topped 48 million with more than 788,000 deaths.

Growth Stocks To Watch

Nvidia (NVDA) gapped up and surged 8.7% in heavy volume to a new high, after the company’s earnings and revenue topped views late Wednesday. The IBD Leaderboard stock is sharply extended from a 230.53 buy point of a shallow consolidation, according to MarketSmith chart analysis.

The graphics chip designer also guided higher for the current period. Nvidia earned an adjusted $1.17 a share on sales of $7.1 billion for the period ended Oct. 31. Analysts expected $1.11 a share on sales of $6.82 billion, according to FactSet.

Rivian Automotive (RIVN) fell almost 13% early Thursday. That extended Wednesday’s 15% dive to 146.07, which marked the first decline in the electric-pickup maker’s short history. RIVN stock is still well above its $78 IPO price from just over a week earlier.

Lucid (LCID) stock sank 12% in heavy volume, after reversing lower on Wednesday. That followed Lucid Motors’ 24% spike Tuesday after reporting a big jump in Lucid Air reservations. LCID stock still has nearly doubled from a 25.76 buy point.

Retail Earnings Reports

Macy’s (M) gapped up and soared over 15% after the department store operator reported fiscal Q1 earnings and sales that beat Wall Street targets. Macy’s stock hit a new 52-week high and hit the 20%-25% profit-taking goal from a 28.51 buy point of an ascending…