The Dow Jones Industrial Average remained lower Wednesday afternoon and reversed some of Tuesday's gains. So far this week, the indexes have been rising and falling every other day. The Nasdaq composite and S&P 500 showed identical action in today's market.
Market conditions shifted on Wednesday as stocks paused amid a run higher. Following last week's follow-through days on the S&P 500 and Nasdaq, the new market uptrend remains intact and it's still a good time to buy stocks and increase exposure. Despite Wednesday's losses, the indexes are still either above key moving averages or are testing these areas after regaining them earlier this week.
The majority of the S&P 500 sectors traded lower, with the exception of the energy and utilities sectors. The Financial Select Sector exchange traded fund rose 2% in early afternoon trade. Health care, financial and consumer staple stocks lagged in the S&P 500.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34357.77 | -449.69 | -1.29 |
| S&P 500 | (0S&P5) | 4456.12 | -55.49 | -1.23 |
| Nasdaq | (0NDQC ) | 13922.60 | -186.22 | -1.32 |
| Russell 2000 | 203.76 | -3.74 | -1.80 | |
| IBD 50 | 38.92 | -0.50 | -1.27 | |
Last Update: 4:10 PM ET 3/23/2022 |
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After the Federal Reserve announced last week the first in an expected series of interest-rate hikes, Treasury yields moved initially higher this week. But the benchmark yield pulled back on Wednesday as the 10-year U.S. Treasury note's yield fell to 2.32% from 2.37% Tuesday.
Energy stocks moved higher as U.S. crude futures shifted up more than 4% to above $114 per barrel. Last week, oil fell to around $95, but rebounded from that level.
Dow Jones In The Stock Market Today
In late-afternoon trading, the Dow Jones industrials held a loss of 1.3%. The index remains below its 200-day line and is testing support at the 50-day level. The Nasdaq declined 1.3% as well, and still remains above its 50-day line.
The S&P 500 lost 1.2% and tested its 200-day line after regaining this area on Tuesday. The Russell 2000 traded 1.8% lower, underperforming the other indexes. Early data showed volume is running lower on the Nasdaq and on the NYSE vs. the close on Tuesday.
In economic news, new home sales fell to 772,000 in February from a revised 788,000 the previous month. Economists expected 810,000. The stock market saw the SPDR S&P Homebuilders ETF fall 3.9% at the close.
Among Dow Jones stocks making notable moves, Apple led the upside with a 0.8% gain and closed higher for its seventh straight day as it forms a double-bottom base. In a note to clients late Tuesday, Wedbush Securities analyst Dan Ives said Apple is seeing "stellar" iPhone 13 demand globally and an "elongated product cycle." The momentum will provide a good setup for the launch of the iPhone 14, he said.
Shares reclaimed the 50-day line on Tuesday and are just 3% away from the 176.75 entry.
Shares of Home Depot led the Dow on the downside, with losses of nearly 4%. On the upside, Chevron rose over 1%.
Breakouts And Stocks Nearing Buy Points
Solar stocks Enphase and SolarEdge Technologies outperformed with gains of roughly 0.5% each in the S&P 500. Enphase is working on its fifth straight weekly gain.
SolarEdge, the presumed leader of the group based on recent price action and fundamentals, topped a 335.67 cup-with-handle buy point on Wednesday but volume was light. Shares faded from the buy point in afternoon trading. IBD's solar group was up 2.7% for the day.
MarketSmith Growth 250 stock and shipping leader Genco Shipping & Trading broke out above a 21.99 cup-with-handle entry. The stock became slightly extended in afternoon trading after a rise of over 9% Wednesday afternoon. The stock's RS line also reached a new high. Genco got some air play in Thursday's IBD Live show.
Finally, record management and data protection company Iron Mountain briefly rose above a 52.32 buy point of a cup-with-handle base, before closing below this area. Shares were up 2.4% and are well supported above their 50-day and 21-day lines. But volume was light.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
