There was big-time follow-through on the downside to Wednesday’s weak close in Thursday’s premarket trading. In fact, the index made a new low for the month by nearly 20 handles (4347.75 vs. 4365.25). That low came in just above its July 22 low (4341.50).
However, the buy the dippers came in full force at the prior monthly low as the index put in bottom immediately during the regular session at 4364.50 and headed north. While the first half hour was straight up, the remainder of the session had violent 20-30 point swings in both directions.
The index began to struggle once it cleared 4400 and sellers put an end to the rally just above Monday’s low (4311.75) at 4414.75. An early afternoon swoon took the index to 4380, but rebounded once again to end the session higher by 7 handles to close at 4401.50.
Microsoft (NASDAQ: MSFT) led the way on the upside after announcing an increase in Office 365 prices in 2022. It made a new all-high by a wide margin, ending the day higher by $6.05 or 2.1% at $96.77.
On the downside, the Street showed its disapproval of Amazon Inc. (NASDAQ: AMZN) making a move into brick and mortar stores. It made a new post-earning low again, declining $13.47 or 0.42% to close at $3187.75.
PreMarket Prep Stock Of The Day: Robinhood Markets (NASDAQ: HOOD)
It is never a good thing to hint at lower guidance in the first earnings report as a publicly traded company.
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