The stock market closed lower Thursday, although signs pointed to restrained selling and small caps rose.
The S&P 500 fell 0.5%, the Nasdaq composite nearly 0.3% and the Dow Jones Industrial Average 0.4%. The Russell 2000 was slightly lower at the close.
Some stock market data indicated selling was controlled. Preliminary data showed volume fell on the NYSE and Nasdaq. Despite the stock market’s drop, winners led losers by better than 11-to-10 on the Nasdaq. Advancers and decliners were nearly even on the NYSE.
U.S. Stock Market Today Overview
Last Update: 4:14 PM ET 9/9/2021
Medical Sector Hits Stock Market
Health care was one of the weakest S&P sectors. Health Care Select Sector SPDR (XLV) slid 1.2% and closed below its 21-day exponential moving average for the first time since July 19. A rash of bad news hit the sector, some that threatens pricing power.
The Wall Street Journal reported that the Biden administration plans a series of steps to lower prescription drug prices, including an effort to negotiate lower Medicare drug prices.
And Biogen (BIIB) sold off after its CEO admitted the launch of the controversial Alzheimer’s drug Aduhelm is going slower than expected.
Transportation stocks also were broadly lower. The Dow transports skidded 1.1%. Trucking, railroad, airfreight and logistics industry groups fell more than 1%. But airlines ascended nearly 3% despite warnings that Covid-19 cases are hurting the industry rebound. Some of the 21 stocks in the group are trying to form bottoms in their price corrections, but none is close to a buy point.
Chinese Stocks Lower
A report by the South China Morning Post on Thursday said China threatened to slow down approvals for all new online games or ban them altogether. The news was the latest of many criticisms and regulations aimed at gaming and Chinese technology companies.
Lululemon (LULU) was a standout after the stock gapped to a new high on a strong earnings report late Wednesday. Lululemon gapped above its 50-day moving average. Wedbush, Deutsche Bank, BTIG and others raised their price targets on Lululemon.
The energy sector rose 0.2% despite a drop in oil prices. The price of U.S. crude oil for October delivery fell $1.16 per barrel, or 1.7%, to $68.14. A Chinese government agency said it would release oil from reserve stockpiles. Oil prices were erratic after the U.S. Energy Information Administration reported lower supplies and refining following Hurricane Ida.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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