The Dow Jones Industrial Average and S&P 500 closed positive after shedding early losses on the first trading day of September. The Nasdaq composite lost ground but pared early losses as well.
Dow Jones Reverses Higher
The Dow closed 0.5% higher after erasing steep intraday losses. The S&P 500 blue chips ended the day 0.3% higher while the Russell 2000 small caps lost 1.1%.
The Nasdaq fared better than small caps, but still lost 0.3%.
As of Thursday's close, the Nasdaq is down 12% from mid-August highs, returning to "correction" territory. This market state is broadly defined as a greater-than-10% pullback from the most recent high.
For now, IBD's market outlook of "uptrend under pressure" remains.
However, the indexes may continue to lose ground after breaking support at their 50-day lines earlier this week. Historically, September is the worst month for the S&P 500 in terms of price performance.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31657.14 | +146.71 | +0.47 |
| S&P 500 | (0S&P5) | 3966.87 | +11.87 | +0.30 |
| Nasdaq | (0NDQC ) | 11785.13 | -31.07 | -0.26 |
| Russell 2000 | 181.48 | -2.02 | -1.10 | |
| IBD 50 | 27.40 | -0.88 | -3.11 | |
Last Update: 4:10 PM ET 9/1/2022 |
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Volume was higher by double-digit percentages on the Nasdaq and NYSE, compared to the close on Wednesday, according to early data. With the indexes bouncing into the close, higher volume could be a bullish indicator.
Crude oil futures traded lower again, giving up another 3.5% to around $86.39 per barrel. Meanwhile, the 10-year Treasury yield continued higher and is probing multi-month highs above 3.25%.
Health care, utilities and other defensive sectors led the upside with strong gains. The energy sector underperformed, dropping the Energy Select Sector SPDR nearly 3%.
Dow Jones Today
Dow Jones leader Chevron lost 2.2%, dragged down by slumping energy prices, but the oil giant was not the worst performer among blue chips. Rather, Boeing led the downside, posting a 4.7% loss. Chemicals stock Dow sold aggressively as well, down 2.6%.
On the upside, Johnson & Johnson and Merck each booked gains of around 2.1%. Merck is currently forming a flat base with a 95.82 entry. Shares remain 9% below the buy point and are trading under the 21- and 50-day moving averages.
Shares of Apple closed up 0.5% after finding support at the 50-day moving average.
The iPhone maker is sitting 14% below a 183.04 buy point from a very long consolidation. Support at the 50-day line is a favorable sign for the stock.
Chipmaker Semtech Plummets On Earnings
Analog and mixed-signal-chip maker Semtech fell a stomach-churning 27% on Thursday after the semiconductor designer topped estimates but missed the mark with its current quarter outlook.
Late Wednesday, the company reported a profit of 87 cents per share on sales of $209.3 million for the fiscal second quarter, ending July 31. Analysts had forecast earnings of 85 cents on $208.3 million.
On a year-over-year basis, Semtech earnings rose 34% while sales climbed 13%.
