Stocks weakened in afternoon trading Thursday as Nvidia (NVDA) held gains but related stocks faded. Meanwhile, Live Nation Entertainment (LYV) toppled on an antitrust action.

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The Dow Jones Industrial Average increased its loss to 1.4%, down about 540 points in afternoon trading. The blue chip index fell further below the 40,000 level it topped recently. The S&P 500 reversed 0.6% lower, while the Nasdaq also reversed lower, off 0.2%. An Nvidia-related boost for AI and chip stocks faded. The small-cap Russell 2000 dropped 1.3%.

Volume rose on the Nasdaq and was modestly higher on the New York Stock Exchange vs. the same time in Wednesday’s session.

Among exchange traded funds, Invesco QQQ Trust (QQQ) fell 0.3%. But the Innovator IBD 50 ETF (FFTY) outperformed with a 0.7% increase.

The benchmark 10-year Treasury yield inched up to 4.48%.

West Texas intermediate crude oil dipped to $77.10 a barrel.

Dow Stocks: Boeing Worst Of the 30 Stocks

Boeing (BA) skidded around 7% after announcing weaker cash flow. After it bled $4 billion in cash in the first quarter, the company now expects it may be cash-flow negative for the full year 2024.

Shares undercut their downward-sloping 50-day moving average. The aerospace stock is on track for its largest decrease since Jan. 25, 2024, when it fell 5.7%, according to Dow Jones Market Data. Shares have lost around 33% year to date. Boeing stock was the biggest loser in the Dow Jones in the stock market today.

McDonald’s (MCD) fell 2%, contributing to the Dow’s drop. It is on pace for a six-day losing streak. The fast-food giant fell further below its 50-day line. Shares have lost 12% this year so far.

Johnson & Johnson (JNJ) also lost around 2% and is now trading below its 50-day line. Shares are down 4% on the year.

Outside the Dow, Live Nation Entertainment plunged more than 7% in heavy trading, on news the Justice Department and more than two dozen states are suing the entertainment promoter. The antitrust suit strives to break up the Live Nation-Ticketmaster duo, claiming the combination limits competition and drives up ticket prices.

The stock sank below its 50-day line in a cup base. Live Nation reported a loss of 53-cents per share in its first quarter following a $1.22 loss per share the previous quarter.

Stock Market Today: Synopsys Stock Pops

IBD 50 component Arista Networks (ANET) tumbled around 4% and retreated below the 307.74 buy point of a cup base. The data center network company stopped short of its 50-day moving average before trimming losses.

The stock broke out of the base shortly after the company topped first-quarter adjusted earnings and revenue views on May 7. Shares are on pace for a six-day losing streak.

Synopsys (SNPS) rose 3.5% after the chip design software developer reported fiscal second-quarter adjusted profit growth of 26% over the prior year’s same quarter. But its growth slowed from 66% and 36% in the prior two periods. Its Q2 sales increased 15%, but lagged the 25% and 22% growth in the prior two quarters.

Shares topped a trendline around 580 and are in an undefined base with a 629.38 buy point.

Stock Market Today: Nvidia Tops 1,000

IBD 50 stock Nvidia held most of its gains, up about 10% in afternoon trading after the company smashed fiscal first-quarter earnings and sales estimates. The IBD Leaderboard stock topped the 1,000 level for the first time. Shares are extended from the 5% buy zone of a handle entry at 922.20.

Nvidia gained an impressive 113% this year so far. Its relative strength line reached a 52-week high on Thursday, according to MarketSurge chart analysis.

The artificial intelligence powerhouse earned an adjusted $6.12 a share on sales of $26 billion in the quarter ended April 28. That’s a 461% rise in profit and a 262% jump in revenue year over year.

Nvidia’s data center sales stood out, with a 427% year over year rise to $22.6 billion. The company forecast current-quarter sales of $28 billion vs. analysts’ estimates of $26.62 billion.

“AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities,” said Jensen Huang, CEO of Nvidia, in the earnings release. The company also announced a 10-for-1 stock split effective June 7, 2024

Chip Stocks Rally, Then Fade

AI chipmaker Broadcom (AVGO) erased morning gains in recent trades. Meanwhile, Taiwan Semiconductor Manufacturing (TSM) rose around 1.2% in sympathy with Nvidia.  Advanced Micro Devices (AMD) reversed lower.

Super Micro Computer (SMCI) erased nearly all gains after jumping as much as 3.7% in heavy volume. It is meeting resistance at its 50-day line. Meanwhile, Dell Technologies (DELL) also trimmed gains and was up 4.2%. Both companies use Nvidia chips in their AI servers.

Stock Market Today: Snowflake Stock Sinks

ELF Beauty (ELF) spiked around 21% after the cosmetics company reported a surprise profit and higher sales in its fiscal fourth-quarter earnings report. But the company gave fiscal 2025 profit and revenue guidance below views. The stock reclaimed its 50-day moving average.

Snowflake (SNOW) slid 3% after the data storage and analytics company reported higher-than-expected fiscal first-quarter revenue but fell short on profit estimates. The stock sank to its 50-day line as it seeks support.

Economic News: Jobless Claims Fall

The Labor Department reported that weekly initial jobless claims for the week ended May 18 fell to 215,000 vs. the 220,000 consensus forecast. This fell from the revised 223,000 claims in the prior week and reflects a robust job market.

Wednesday afternoon, the minutes from the Federal Reserve’s April 30-May 1 meeting on interest rates were released. As the IBD Big Picture commented on Wednesday, “Policymakers were concerned that inflation remains persistent, and some would consider raising interest rates if prices don’t come down further.”

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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