The Dow Jones Industrial Average erased early gains and closed slightly lower Thursday as the stock market made another fade from early gains.
Dow Jones Erases Gains
In a bearish pattern, indexes have been erasing early gains and closing near session lows. The Dow Jones industrials fell less than 0.1% Thursday after trading more than 1% higher. The Nasdaq composite fell 1.4% as tech leaders continued to get pounded. The S&P 500 fell 0.5%.
The Russell 2000 slid 2.2% as small caps were clearly the weakest major index. Volume fell on the Nasdaq and rose on the NYSE, according to preliminary numbers.
Innovator IBD 50 ETF also struggled and lost 1.6%. It remains well below key moving averages.
Early Thursday, stocks were boosted by reports from the U.S. Commerce Department that GDP grew 6.9% in the fourth quarter. This exceeded the 5.7% increase in Econoday's consensus of economist forecasts, and it marked a sharp acceleration from the 2.3% increase in Q3 GDP.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34118.09 | -50.00 | -0.15 |
| S&P 500 | (0S&P5) | 4324.78 | -25.15 | -0.58 |
| Nasdaq | (0NDQC ) | 13371.33 | -170.79 | -1.26 |
| Russell 2000 | 191.45 | -4.52 | -2.31 | |
| IBD 50 | 36.74 | -0.49 | -1.32 | |
Last Update: 3:14 PM ET 1/27/2022 |
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However, it wasn't enough to placate investors and stop the selling. On Wednesday, markets reacted negatively to a key Federal Reserve policy announcement. The Fed indicated a rise in the Fed funds rate is in the cards and reiterated a commitment to reversing the easy-money policies of the pandemic era amid rapidly-rising inflation.
The 10-year Treasury yield slid from 1.84% Wednesday afternoon to 1.8% on Thursday.
Stocks Making Notable Moves
Williams Cos. nearly broke out from a 29.94 cup-with-handle buy point. But volume struggled to support the move and shares closed below the entry. The stock's RS line looks promising. Williams Cos. is part of the integrated oil and gas industry group, which ranks a lofty No. 6 of the 197 IBD groups.
Shares of Tenaris, a steel producer, broke out from a 24.83 cup-with-handle buy point before closing slightly below the entry.
Apple Earnings On Deck
As for key earnings movers, all eyes are on Apple as the firm is set to report results for its December-ended quarter after the close. Analysts expect earnings of $1.90 a share and sales of $119 billion. The stock reversed lower Thursday, extending its losing streak to eight days.
Late Wednesday, Tesla reported better-than-expected fourth-quarter earnings. But the electric-vehicle maker said supply-chain issues continue to hurt production. The stock plunged more than 11% Thursday as shares near the 200-day line.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
