Profit-Taking Sends Stocks Tumbling at Midweek, Freeport Drops by 4%: 7 Stocks You Need to Know for Thursday
Overbought conditions have brought out the profit-taking at midweek. Some of the most significant selling took place in overbought stocks trading below the 200-day moving average, particularly financials like ^GS^, down more than 3% after closing in overbought territory above the 200-day for two consecutive sessions, and ^BAC^. Shares of BAC closed at new lows below the 200-day moving average after rallying into overbought territory on Tuesday.
Here are 7 Stocks You Need to Know for Thursday.
Consumer staples stocks like ^SJM^ were among the few stocks spared the selling at midweek. SJM closed higher for a fourth day in a row and is overbought above the 200-day moving average.
Pulling back sharply by more than 13% on Wednesday were shares of ^JOSB^ (below).
The retailer reported quarterly earnings on Wednesday that were less than analysts had expected.
What’s up on a down day? Shares of ^APOL^ rallied by more than 2% to close back above their 200-day moving average heading into trading on Thursday.
Another reminder of why to avoid stocks trading below their 200-day moving average: shares of ^RIMM^ dropped by nearly 6% in Wednesday’s session. The stock is down 17% since it closed below its 200-day a month ago.
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Selling in supermarkets was particularly aggressive ahead of trading on Thursday, down more than 6% were shares of ^SWY^.
Scheduled to report quarterly earnings on Thursday, ^JOYG^ pulled back by nearly 4% on Wednesday.
The reversal in JOYG comes after the stock rallied for four days in a row.
^FCX^ (below) has closed lower for two days in a row above the 200-day moving average, pulling back by more than 4% on Wednesday alone.
FCX closed below its 5-day moving average for the first time in a week, but is not yet in oversold territory.
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David Penn is Editor in Chief of TradingMarkets.com