Stocks quickly surrendered early gains Thursday, then retreated to deepening losses in the final session before the transition of power in the U.S. presidency.
The Dow Jones industrial average ended the session down 0.4%, slipping into negative territory for the year. The S&P 500 also shed 0.4%, while the Nasdaq notched a 0.3% decline.
Bond yields ran higher, the dollar was mixed and oil prices edged up, with West Texas intermediate largely staying put between $51 and $52 per barrel.
After the close, IBM (IBM) beat sales and profit expectations and its guidance was above views, too. But the stock fell ,more than 2% in extended trading. The stock is in buy range from the 161.96 buy point of cup with handle.
American Express (AXP) was down slightly after the close following the company's earnings release. Results were mixed although management gave a bullish outlook.
Prime Movers: CSX, Oclaro, Aaron's
Among the day's more breathtaking moves, railroad CSX (CSX) gapped up and surged to a 23% gain in massive trade. Outgoing Canadian Pacific (CP) CEO Hunter Harrison will reportedly step down five months earlier than planned and team up with activist investor Paul Hilal to try to put Harrison in a top management post at CSX, according to a Wednesday report from the Wall Street Journal. After Thursday's gap up, the stock is extended from a rebound off its 10-week moving average, but the strong action is a bullish sign.
Fiber-optic gear maker Oclaro (OCLR) was also a big winner, soaring 17% after reporting preliminary revenue and operating income above prior guidance. The move punched shares back above their 10-week moving average, placing them well up the right side of a base begun in November.
Tesla Motors (TSLA) climbed 2% in quick trade, scaling up the right side of a base with a 269.44 potential buy point. Morgan Stanley raised its rating on the electric car maker to overweight with a 305 price target.
In a holiday-shortened week buffeted by pre-inauguration volatility and news bytes out of Congressional hearings of incoming administration Cabinet picks, tobacco, automakers and shipping fleets have thus far posted the strongest moves among the 197 industry groups tracked by IBD.
A heavy-volume, 10% fall by Atlanta-based Aaron's (AAN) dragged consumer electronics retailers to the week's worst performance among industries. Raymond James reduced its rating on Aaron's to market perform from strong buy.
A Tough Week For Super Regional Banks
The No. 1-ranked industry group, super regional banks, is also among the week's hardest hit, with Northern Trust (NTRS) down more than 7%, and SVB Financial (SIVB), Regions Financial (RF) and Fifth Third Bancorp (FITB) down more than 4% apiece.
On Friday, the economic calendar is pretty bare with just the Baker-Hughes rig count coming out at 1 p.m. ET. General Electric (GE) is the biggest company reporting earnings. Analysts expect an 11.5% drop in EPS. Oil services provider Schlumberger (SLB) also reports.
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