The Dow Jones Industrial Average tumbled early Friday as this week's sell-off worsened and the indexes remained on track for weekly losses. A grim warning from FedEx about the firm's full-year guidance and the global economy sent stocks lower.
The Dow was down 1.1% while the S&P 500 held a loss of 1.3%. Tech stocks were leading the market downside as the Nasdaq declined 1.7%. The Russell 2000 fell 1.9% as small caps also underperformed.
Volume was lower on the Nasdaq and higher on the NYSE compared to the same time on Thursday.
Crude oil futures bounced early Friday. The commodity rose around 1% to $85.98 per barrel. Meanwhile, the yield on the 10-year Treasury note rose to 3.48% and extended this week's gains but pared gains to around 3.45% later on in the session. On Thursday, the 10-year Treasury yield notched its highest closing level since June 14 and is now near the 11-year high of 3.48% set on June 14.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30620.05 | -341.77 | -1.10 |
| S&P 500 | (0S&P5) | 3848.05 | -53.30 | -1.37 |
| Nasdaq | (0NDQC ) | 11356.96 | -195.40 | -1.69 |
| Russell 2000 | 177.94 | -3.69 | -2.03 | |
| IBD 50 | 26.91 | -0.82 | -2.96 | |
Last Update: 11:52 AM ET 9/16/2022 |
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The major indexes continue to fall further below support at their 50-day moving averages while the S&P 500 and Nasdaq undercut their recent Sept. 6 lows, another important level of support. "Amid this week's sharp losses, the stock market trend remains "under pressure," Thursday's The Big Picture column commented. "So investors should still be focused on defense."
FedEx Warns Of Global Economy Negative Trends
FedEx plummeted over 23% after the company issued warnings for its fiscal first quarter and withdrew its full-year guidance. The shipping giant announced cost-cutting measures, including the closing of 90 office locations.
"Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.," CEO Raj Subramaniam said in a news release. "While this performance is disappointing, we are aggressively accelerating cost reduction efforts."
Shares of the shipping company continued to weaken below support at its 50-day and 200-day moving averages.
Outside Dow Jones: Growth Stocks To Watch
The Innovator IBD 50 ETF, which found resistance at its 50-day moving average this week, underperformed the stock market again on Friday with a 3% loss.
A handful of oil and gas names continued to lead the downside on Friday, including natural gas play Flex LNG, New Fortress Energy and Comstock Resources, which lost 6.8%, 4.7% and 7%, respectively.
Among the 11 S&P 500 sectors, energy was among the worst performers. The Energy Select Sector SPDR lost 2.2%. Industrial and materials stocks also led the downside, while all sectors traded lower.
On the upside, BJ's Wholesale Club was the only stock in the IBD 50 trading higher, and rose 1.9%. Shares remain extended from a recent breakout above a 71.10 double-bottom buy point. The stock has recently been floating higher above its 21-day exponential moving average.
Elsewhere, shares of Waste Connections only fell 0.6% as the pollution control company traded inside the 5% buy zone from a 144.56 cup-with-handle entry. The stock broke out late last week and remains above support at its 50-day line.
Ulta Beauty also traded inside a 5% buy zone, but remains near the lower edge. The stock has been trending sideways after breaking out from a 417.08 double-bottom base entry. Ulta briefly became extended last week but shares have since receded amid this week's market sell-off.
