Stocks Fall In Higher Trade Again, End Near Session Lows

By VICTOR REKLAITIS, INVESTOR’S BUSINESS DAILY

Stocks extended their losing streak Wednesday, closing with sizable losses and near their session lows.

The Dow Jones industrial average fell 1%, the S&P 500 shed 0.6% and the Nasdaq pulled back 0.4%. Volume increased from Tuesday’s levels on both main exchanges, according to preliminary data.

The S&P 500 and Nasdaq have both dropped for four days in a row, while the Dow has stretched its losing streak to three straight sessions. The Nasdaq moved further below its 50-day moving average, but the other two indexes remain just above that key level.

In economic news Wednesday, the Federal Reserve’s latest beige book report said “economic activity generally expanded modestly since the last report.” It also said residential real estate conditions improved in September, while the manufacturing sector was mixed but somewhat improved overall.

Alcoa (AA) shed 5% in big volume in the wake of its third-quarter earnings report late Tuesday. The aluminum giant posted big declines in adjusted EPS and revenue, but beat expectations. It also cut its forecast for growth in aluminum demand to 6% from 7%. Alcoa has a weak IBD Composite Rating of 12, near the worst-possible grade of 1.

Apple (AAPL) rose 1% in above-average turnover, as it snapped a four-session losing streak. The stock, No. 37 in Wednesday’s IBD 50 lineup, remains below its 50-day moving average and 8% off its Sept. 21 high.

On Thursday, Winnebago Industries (WGO), Fastenal (FAST) and Safeway (SWY) are among the companies slated to report quarterly earnings. The day’s economic reports will include fresh figures for weekly jobless claims, international trade and import and export prices.

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