The stock market saw some bargain hunting at midday Friday as indexes came off session lows and were briefly higher.
The S&P 500 reduced its loss to 0.6% and is attempting to rebound off the 200-day moving average. Watch for possible support at that key level.
The Dow Jones Industrial Average fell 0.2%. The Nasdaq composite pared its loss to 1% after sinking to a seven-month low. The Nasdaq is off more than 10% in January.
Volume rose on the Nasdaq and NYSE compared with the same time on Thursday.
Invesco QQQ Trust, which tracks the Nasdaq 100, on Thursday closed below the 200-day moving average, the lowest point since the Covid-19 bear market of 2020. Today, it dropped a bit more below the line after a 1% midday decline.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34637.83 | -77.56 | -0.22 |
| S&P 500 | (0S&P5) | 4455.57 | -27.16 | -0.61 |
| Nasdaq | (0NDQC ) | 14008.05 | -145.97 | -1.03 |
| Russell 2000 | 200.41 | -0.34 | -0.17 | |
| IBD 50 | 38.27 | -0.37 | -0.96 | |
Last Update: 12:00 PM ET 1/21/2022 |
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The ETF tracks some major stocks, including Netflix, which plummeted 21% to the lowest level since April 2020. It's on track for the largest single-day drop since July 2012, when it fell 25%, according to Dow Jones Market Data.
The video streaming company late Thursday edged past earnings expectations for new subscribers but missed its own forecast and guided below views for the current quarter.
Streaming Stocks Fall In Sympathy With Netflix
Even before the poor outlook, Netflix was already a much troubled stock. Shares have been trending lower since November. The first sell signal came Dec. 1, when shares broke below the 50-day moving average in heavy trading.
Other streaming stocks fell in sympathy, including Walt Disney, Roku and Amazon.com.
U.S. crude oil pared losses to 0.1%, to $85.49 a barrel. Oil has been rallying partly on rising geopolitical tensions. Energy Select Sector SPDR fell more than 1%, making it one of the weakest S&P sectors Friday morning.
Investors fled riskier assets of any sort and sought shelter in Treasuries. With bonds in demand, the yield on the 10-year Treasury note fell 7 basis points to 1.76%.
Stock Market Risk Off As Bitcoin Tumbles
Bitcoin fell about 9% to below $40,000 while other cryptocurrencies tumbled as well.
ProShares Bitcoin Strategy ETF fell 9.6% to 24.48, the lowest price since the Bitcoin futures-tracking ETF started trading on Oct. 19.
Grayscale Ethereum Trust plunged 11%, hitting the lowest price since July. Grayscale Bitcoin Trust slid 8.5%. Coinbase Global, a cryptocurrency trading platform, skidded nearly 7% to a record low.
Innovator IBD 50 ETF for a time erased all gains and was off 0.7% at midday. It is on track for a weekly loss of 9%, the worst week since March 2020.
Silicon Motion rose nearly 3% and is getting support at its 10-week moving average. The company reports earnings next Thursday.
West Fraser Timber fell 3.7% and erased all gains from its 90.09 buy point. That caused a round-trip sell signal.
In earnings news Friday, Schlumberger fell after the oil field services company reported earnings this morning that topped expectations. Earnings jumped 86% to 41 cents per share with revenue up 13% to $6.22 billion.
Schlumberger said fundamentals look favorable going forward. The stock cleared a 36.97 buy point last week, but is below it now. An earlier entry at 35.09 has held up.
CSX fell 2% after the railroad company edged past earnings expectations late Thursday. CSX's EPS rose 20% to 42 cents a share. The stock fell just below the 200-day line but bounced from that level.
