Stocks rallied almost into the close Thursday as the Nasdaq composite led a rebound.
XThe Nasdaq added 0.8% and bounced at the 50-day moving average — a potential sign of a near-term market bottom. Strength in leading internet and software shares gave the composite a boost above other indexes.
The S&P 500 jumped 0.6% and closed near its own 50-day line. Watch for the index to climb above that line if the market truly is rebounding.
The Dow Jones industrial average added 0.4%. It closed just below the 200-day moving average. Unlike the Nasdaq and S&P 500, the Dow has a loss for the year. Walgreens Boots Alliance (WBA) is getting a rude welcome after joining the Dow industrials this week. The stock was the Dow's worst component, off 10%.
Small caps lagged, as the Russell 2000 produced only a 0.2% increase. But the index made a favorable change as it appeared to find support above its 50-day line also.
Volume fell, according to preliminary figures. Advancers led decliners by 3-2 on the NYSE and by 6-5 on the Nasdaq.
Amazon.com (AMZN) — up 2.5% — was a headliner Thursday on news that it acquired online pharmacy PillPack in a deal reportedly worth about $1 billion. The deal sent ripples across the drugstore industry, which was Thursday's worst performing industry group.
Amazon is a longtime member of IBD Leaderboard.
Pharmacy Stocks Sell Off
CVS Health (CVS), Walgreens Boots Alliance and Rite Aid (RAD) gapped down sharply in heavy volume. The selling spread beyond the retailers. Drug distributors including AmerisourceBergen (ABC) and McKesson (MCK) also gapped lower.
The Innovator IBD 50 ETF (FFTY) rose 2%. It's usually a good sign when leading stocks can outperform the main indexes.
Bargain hunters lifted some of the Chinese stocks that were under intense selling pressure lately.
Momo (MOMO) leapt 4% as buyers came in around the stock's 50-day moving average. But Momo issued a statement refuting claims made by a short seller. Baozun (BZUN) surged more than 5% but the stock had already triggered a round-trip sell signal as it erased all of its double-digit gains from its 52.43 buy point.
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