The Dow Jones Industrial Average is on pace for a third straight losing day and fell below its 50-day moving average at noon ET. The blue chip index widened its loss from 0.3% early today to 0.7%.
The Nasdaq's loss went from 0.5% earlier to 1% and the S&P 500, which opened 0.2% lower, is trading 0.8% below yesterday's closing price. Both the Nasdaq and the S&P 500 fell slightly below the 50 day line also, as the market continues to price in an era of continued high interest rates.
The Russell 2000 fell 1.5% while the Innovator IBD 50 ETF fell 3.5%.
The yield on the benchmark 10-year Treasury rose to 3.14%, continuing a rising trend.
Volume on the Nasdaq and the NYSE was higher compared to the same time yesterday.
Oil fell more than 4% to $92.72 a barrel on Iraq's exports, which are unaffected by the Russia-Ukraine conflict, and fears that inflation will soften demand in the near term.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31849.59 | -249.40 | -0.78 |
| S&P 500 | (0S&P5) | 3992.86 | -37.75 | -0.94 |
| Nasdaq | (0NDQC ) | 11884.31 | -133.36 | -1.11 |
| Russell 2000 | 184.88 | -2.36 | -1.26 | |
| IBD 50 | 28.44 | -1.04 | -3.53 | |
Last Update: 12:16 PM ET 8/30/2022 |
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Dow Jones components Chevron and Exxon are trading lower although they continue to form cup bases.
With falling gas prices, inflation may come down for reasons other than the Fed's rate hikes, says Jamie Cox, Managing Partner at Harris Financial Group.
Home prices fell in July in the West Coast cities and rose more slowly in other part of the country. According to Bill Adams, chief economist at Comerica Bank, the slower price increase will pass into the closely watched consumer price expenditure index in one to three quarters. A cooling in core inflation will be the next signal of inflation coming under control.
According to the CME FedWatch Tool, there is a 76% chance of a 75 basis point hike in September.
Outside the Dow Jones: Stocks Moving Today
First Solar rose 6% today and is trading at 11-year highs. The company will make a $1.2 billion investment in its EV battery plants, following President Joe Biden's Inflation Reduction Act, which encourages domestic production of renewable energy products.
Enphase Energy and SolarEdge continue to trade down. The Invesco Solar ETF rose modestly early today but has reversed lower. TAN is on the IBD Leaderboard. Enphase is an IBD 50 stock.
Earnings Reports
Outside the Dow Jones, Best Buy's $1.57 earnings per share beat estimates of $1.27. $10.33 billion revenue topped views of $10.24 billion. Shares gapped up nearly 6% above their 50-day moving line on strong volume, although gains have faded.
Baidu fell nearly 7% after the search engine giant beat estimates. Revenue of 29.65 billion yuan (about $4.29 billion) topped estimates of 29.30 billion yuan.
In the semiconductor group, Photronics beat estimates but lowered its full-year outlook. Earnings of 51 cents a share on revenue of $219.9 million came above estimates of 50 cents and $210 million, respectively. PLAB sold off sharply after the news, diving over 20% and cutting through its 50- and 200-day lines.
IBD 50 stock and chip gear maker Axcelis Technologies continued to sell off in today's action. The stock's breakout on Thursday has now failed, resulting in a sell signal for investors who bought at that entry.
Follow Vidya Ramakrishnan @ IBD_Vidya for more news on the stock market today.
