The Dow Jones Industrial Average moved lower on Thursday after a rally yesterday. Investors digested earnings reports from a slew of banks including Wells Fargo, Goldman Sachs, Morgan Stanley and Citigroup.
In early-afternoon trading, the Dow Jones industrials slightly lower after trading higher earlier in the session. The index remained above its freshly reclaimed 50-day moving average and 21-day exponential moving average. The Nasdaq was down the most Thursday, falling 1.6%. The index remained below 21-day and 50-day moving averages after gapping below them on Monday.
The S&P 500 lost 0.8% and is testing support right at the 50-day line. The small-cap Russell 2000 declined 0.7%. Volume was lower on the Nasdaq and higher on the NYSE vs. the same time on Wednesday.
The Innovator IBD 50 ETF, a benchmark for growth stocks, lost 0.6%. Last week, the ETF broke below the 50-day line after finally reclaiming this level in mid-March. Growth stocks have struggled in the recent market.
The yield on the benchmark 10-year Treasury note rose to 2.81%. Meanwhile, West Texas Intermediate crude continued higher, up 1.3% to above $105 a barrel. As for the S&P 500 sectors, about half traded lower while the other half rose modestly. Consumer discretionary and technology led the downside with losses of over 1% each. Energy stocks led the upside with gains of 0.6%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34652.85 | +88.26 | +0.26 |
| S&P 500 | (0S&P5) | 4423.54 | -23.05 | -0.52 |
| Nasdaq | (0NDQC ) | 13465.41 | -178.18 | -1.31 |
| Russell 2000 | 200.17 | -0.74 | -0.37 | |
| IBD 50 | 36.76 | -0.18 | -0.49 | |
Last Update: 1:52 PM ET 4/14/2022 |
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In economic news, the number of jobless claims rose last week to 175,000 from 167,000 the previous week. It was less than the 185,000 that economists polled by Econoday had forecast. Retail sales for March were largely in line with estimates.
Bank Stocks Report Earnings
Among bank stocks reporting earnings, Goldman Sachs reversed lower after first-quarter earnings fell 42%, to $10.76 a share. Revenue slid 27% to $12.93 billion. But both numbers beat estimates. Wells Fargo fell over 5% in heavy volume and sank to the lowest point since Oct. 14, despite beating estimates for EPS.
Morgan Stanley pared gains of 3% to 1% in afternoon trading. The firm's Q1 earnings and revenue fell, although the bank still topped analysts' expectations. Finally, Citigroup was up 1% after its first-quarter earnings fell on higher expenses and potential losses from exposure to Russia.
Nike Stock Gaps Up, Leads Dow Jones
Among Dow Jones leaders, Nike led the upside with gains of roughly 4.6% as shares attempted to reclaim their down-sloping 50-day line. The stock gapped up in above-average volume, a bullish sign. Shares have remained below the 50-day line since December. The chart also has a lot of repairing to do before it becomes a watch list-worthy contender.
Chemicals company Dow Inc. was also among top performers in the Dow Jones index. Unlike Nike, shares of Dow are now actionable after rising above a 65.04 cup-with-handle entry. The breakout occurred in light volume. Also, the company is set to report Q1 2022 earnings on April 21, before the market opens. The stock rose 2%.
On the downside, Dow Jones tech leaders held the top spots. Salesforce, Intel and Apple all traded over 2% lower. Meanwhile, Microsoft fell 1.9%.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
