U.S. stocks, which scattered lower after the Federal Reserve hiked a key interest rate by a quarter point, surged in the final hour or so of trading on Wednesday to post mixed results. The S&P 500, held back mostly by energy, pared its losses to 0.1%, as did the Nasdaq Composite. The Dow Jones Industrial Average, however, managed to eke out 0.2% gains to close at another record high.
As we head into Thursday’s trade, however, it looks like pain could be pretty widespread. Big tech is down, including Amazon.com, Inc. (NASDAQ:AMZN), which is losing the war to gravity despite a price-target hike this morning. Financial stocks including Bank of America Corp (NYSE:BAC) are off, with that major bank also reporting a round of job cuts. Jabil Inc (NYSE:JBL) might be one of the day’s few bright points, heading higher after a strong quarterly result.
Here’s everything you need to know about these three stocks this morning.
Amazon.com, Inc. (AMZN)
AMZN stock is heading lower along with the broader markets on Thursday, shrugging despite a price-target raise by an analyst at Nomura Instinet.
Anthony DiClemente, who already has a “Buy” rating on the stock, has raised his PT on Amazon from $975 to $1,100. The change isn’t coming on any new news — merely a change to valuation models to reflect AMZN’s expansion into new businesses while still maintaining its position as the clear leader in e-commerce.
DiClemente called out advertising potential, video and Alexa as bullish drivers.
A secondary headline this morning: Amazon (and several other companies) reportedly have interest in acquiring messaging firm Slack at a potential value of $9 billion. Slack offers messaging, file sharing and other business services, and is integrated with systems such as Microsoft Corporation’s (NASDAQ:MSFT) Skype.
AMZN shares now appear to be battling between its 20-day moving average around $985 and its 50-day moving average at $947, triggered by Friday’s massive sector-wide plunge.
The good news? Amazon stock has worked off any and all overbought readings in its Relative Strength Index and MACD indicators generated by a still-30% run year-to-date.
AMZN is off more than 1% this morning.
Bank of America Corp (BAC)
BAC shares are also off this morning on an apparent “sell the news” day. While the Federal Reserve’s quarter-point interest-rate hike bodes well for Bank of America’s operations, BAC shares are kicking off this morning lower too.
That also comes amid news that Bank of America is cutting costs by beginning job cuts across its operations and technology division, mostly centered around its Charlotte headquarters.
“Although Bank of America is also hiring, the employees that it is trying to reduce cost more than those who are joining, Moynihan said at a conference last month. The bank has also been cutting costs by shuttering data centers and moving information to less costly systems run by technology firms.”
But that too bodes well for BAC, at least financially speaking, implying that yesterday’s rate hike was more than priced into shares.
BAC stock, down more than 1% this morning, continues its tumultuous year but hangs on to roughly 8% year-to-date gains.
Jabil Inc (JBL)
Electronics manufacturer Jabil is heading higher this morning after a strong showing in Wednesday evening’s fiscal third-quarter report.
JBL announced revenues of $4.49 billion for its third quarter, up 4.6% year-over-year and better than analyst expectations of $4.4 billion. And while the company posted a net loss of $26 million, its adjusted earnings came to 31 cents per share — up 82% and ahead of estimates for 29 cents.
The company expects full-year revenues to come in between $4.7 billion to $5.1 billion, and earnings to come in between 13 and 48 cents per share.
CEO Mark Mondello cited “exceptional execution and cost controls against product road maps exhibiting massive scale and complexity” for the quarter’s results, and also boasted of “strong double-digit growth in healthcare and packaging.”
JBL stock continued its steady climb in 2017, up 2% to extend its year-to-date gains above 30%.