The slower pace of the secondary wave of selling on the all-sessions time frame in the index futures continued into Thursday morning. Weakness was most pronounced in the financials (-2.4% in the S&P 500 industry group) despite an upside earnings surprise from JP Morgan (JPM). Tech shares, on the other hand, held up extremely well against early market selling ahead of Google's earnings and the S&P 500 techs posted a gain of 1%. Google (GOOG) provided a pleasant boost even further afterhours on strong quarterly results.
Intraday the market rounded off at lows on the 5 minute time frame. Both the S&P 500 and Dow Jones Ind. Averages created solid reverse head and shoulders patterns off lows that was followed by strength throughout the afternoon. This reversal recovered a large portion of the premarket losses even though the indices still posted a loss for the session. The stronger Nasdaq, however, began its recovery from the prior afternoon's deterioration almost immediately and ended the session with its seventh gain in the past eight sessions.
The Dow Jones Industrial Average ($DJI) ended the day on Thursday with a loss of 40.72 points, or 0.35%, and closed at 11,478.13. Eleven of the Dow's thirty index components posted a gain. The top performers were Intel (INTC) (+1.17%), McDonalds (MCD) (+ 1.08%), and Cisco Systems (CSCO) (+0.99%). The weakest were the financials: Bank of America (BAC) (-5.47%), JP Morgan (JPM) (-4.82%), and American Express (AXP) (-1.49%). Travelers (TRV) fell 1.92%.
The S&P 500 ($SPX) finished the session with a loss of 3.59 points, or 0.3%, and closed at 1,203.66. The top percentage performers in the index were Range Res. Corp. (RRC) (+8.77%), Owens Ill. Inc. (OI) (+8.47%), Sprint Nextel (S) (+8.17%), and Micron Tech. (MU) (+6.15%). The weakest percentage performers were Genworth Financial Inc. (GNW) (-5.60%), Bank of America (BAC) (-5.47%), Citigroup (C) (-5.34%), JP Morgan (JPM) (-4.82%), and Legg Mason (LG) (-4.69%).