The major stock market indexes couldn't dig out of an opening hole at the noon hour Monday, as investors took profits from last week's rally. Investors remain cautious ahead of Wednesday's Fed meeting and big-tech earnings scheduled later this week.
The Dow Jones Industrial Average trimmed 0.2% and the S&P 500 dipped 0.7%. The Nasdaq was hit hardest, down 1.2%, while the small-cap Russell 2000 lost 0.7%.
NYSE volume was higher and Nasdaq lower vs. the same time on Friday.
The Dow held above its 50-day and 21-day exponential moving averages while the S&P 500 traded above support at its 200-day moving average. The Nasdaq rose above its 200-day line Friday and is holding above that level.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF declined 1.3%.
Crude oil dipped 1.1% to $78.83 per barrel, adding to last week's 2.4% drop. The Energy Select Sector SPDR ETF shed 1%.
Bitcoin futures were unchanged at $23,340. The Innovator IBD 50 ETF fared slightly worse than the major stock market indexes, shaving off 1%.
European stock markets were mixed, with the German DAX and Paris CAC down 0.2%. The London FTSE inched up 0.3% in afternoon trading.
This Week's Economic News
The 10-year Treasury note yield added 3 basis points to 3.54%.
The Federal Reserve is expected to announce a quarter-point rate hike Wednesday. That would mark a drop from December's half-point increase, and four 75-basis-point hikes in 2022.
Market players will examine clues during Fed Chair Powell's 2: 30 p.m. ET news conference, with the strong job market refusing to budge. The expectation is for "ongoing increases" and a higher-for-longer funds rate.
January ISM manufacturing and services numbers and the Job Openings and Labor Turnover Survey (JOLTS) reports precede Wednesday's rate decision. Friday brings the all-important January nonfarm payrolls report.
It's a pivotal week of earnings reports, with Apple, Google-parent Alphabet, Amazon, and Facebook-parent Meta Platforms reporting.
107 S&P 500 companies will report this week.
China Stocks Tank, This Chipmaker Fades
Gaming and systems-on-a-chip maker Nvidia pulled back 3.6% as semiconductors felt pain after Intel's worse-than-expected Q4 earnings report on Thursday.
Chinese e-commerce firm Alibaba tumbled 5.1% on reports it's moving its headquarters to Singapore. The company denied the rumors.
Chinese internet search provider Baidu rose 1.8% on news it will soon launch an AI chatbot like OpenAI's ChatGPT.
Automaker Ford Motor fell 1.9%. It will increase production of the electric Mustang Mach-E and lower the sticker price, depending on the model. The move follows Tesla's price cut of up to $13,000 on its competing Model Y, earlier in the month.
Tesla dropped 3.1% after Berenberg upgraded the stock to buy from hold, but lowered the price target to 200 from 255.
Household and consumer products giant Colgate-Palmolive added 2.9% after losing 5.2% in heavy volume Friday, following Q4 earnings results and a lower-than-expected 2023 outlook. The report sparked Wells Fargo and Berenberg to lower price targets. CL is an S&P 500 leader today.
Retailer Kohl's sank 0.2% after Goldman Sachs initiated coverage with a sell rating.
Boot Barn gave back 0.3% after gaining a whopping 17.6% Thursday in heavy volume, following a better-than-expected fiscal Q3 2023 report. Baird downgraded the Western and work-related footwear retailer to neutral from outperform.
Stock Market Today Movers: Electrical Products Stock Breaks Out
Financial-services platform operator SoFi Technologies gapped up 15.5% in huge volume, after reporting a smaller-than-expected Q4 loss. It says it expects to be profitable in the fourth quarter.
Atkore rose 1% and broke out of a flat base, hitting the 128.46 buy point.
Shares of the electrical products manufacturer are in the 5% buy zone, reaching to 134.88. The relative strength line hit a new high, as indicated by blue dots on the daily and weekly MarketSmith charts. The company reports fiscal Q1 2023 earnings Wednesday before the market opens.
Sporting and outdoor equipment retailer Academy Sports & Outdoors rose 2.6% and broke out of a cup-with-handle base, hitting the 57.73 buy point.
Coal miner Alliances Resource Partners gapped up 9.1% in heavy volume after reporting better-than-expected Q4 results and a $100 million stock buyback.
Netherlands-based health technology firm Koninklijke Philips rose 6.2% after reporting Q4 results and 3,000 job cuts in 2023 and 6,000 by 2025.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
