The major stock market indexes lost ground in the first half of Monday's session but are holding above intraday lows. The decline follows Friday's high-percentage losses, in reaction to Federal Reserve Chairman Jerome Powell's gloomy inflation speech.
The Nasdaq composite is the biggest loser, down 1%. The S&P 500 lost 0.5% while the Dow Jones Industrial Average is down 0.4%.
The major indexes are testing their 50-day moving averages, which mark key levels on MarketSmith.
The Russell 2000 small-cap ETF has lost 0.5%, about the same as blue chips, while big techs are getting sold more aggressively. However, the Nasdaq 100-tracking ETF Invesco QQQ Trust has bounced off lows and is now down just 0.6%.
NYSE and Nasdaq volume are down double-digit percentages compared with Friday's volatile session.
Crude oil surged 3.5% to $96.35 per barrel. Natural gas is 1.1% higher, holding near $9 per million British thermal units (mmBtu). The SPDR Select Energy ETF gained 2.4%.
The German DAX has lost 0.6%, the FTSE 100 0.7% and the CAC 40 0.8% in afternoon trading.
Bitcoin futures have shed 1.3% to $20,160 after trading around the $20,000 all weekend.
The yield on the 10-year U.S. Treasury note rose to 3.12%. The 30-year Treasury bill is headed into a test of the eight-year low printed in June.
Market players now project a 70.5% chance that the Fed will raise interest rates by 75 basis points in September. And 29.5% are expecting a 50-basis-point boost.
IBD's 3rd Annual Customer Trust Survey: Stalwarts And Newcomers Win Praise
The August Dallas Fed Manufacturing Survey came in at a better-than-expected -12.9, vs. -13.2, showing continued contraction. The number was an improvement over July's -22.6. The survey has showed deterioration in the prior three months.
Chinese Stock Market: E-Commerce Company Higher After Strong Quarter
Chinese agriculture and e-commerce company Pinduoduo exploded 17.9% after reporting better-than-expected Q2 numbers.
Sales beat expectations while profit rose more than 300%, compared with 2021. Pinduoduo is ranked No. 1 in the Retail-Internet IBD group.
Baidu rose 0.3% as Chinese stocks continue to outperform.
Steel Producers Higher, Fertilizers Pull Back
Tenaris, No. 2 in IBD's Steel Producers group, was up 4.5%. Steel producers are showing surprising strength.
Luxembourg-based steel producer ArcelorMittal gained 3.8%.
Fertilizer giant CF Industries fell 2.8% after a huge summer rally.
IBD 50 stock Diamondback Energy has gained 4.3%, with higher crude prices underpinning energy stocks.
Stock Market Movers: Drugmaker BMY
Bristol Myers Squibb fell 5.6% on news that its stroke drug Milvexian failed its Phase 2 primary endpoint.
The decline puts the stock on pace for the biggest fall since April 29, 2021, when it shed 4.8%. Shares have traded down for the last six days and are below the 200-day moving average.
Catalent dropped 9.1% after reporting mixed fiscal Q4 results.
The company beat earnings-per-share expectations but missed on sales. In addition, management gave 2023 revenue guidance that was lower than expectations.
Natural gas company Excelerate Energy was up 5.2%.
Bed Bath & Beyond rallied 6.7% as the meme stock gained enthusiasts on social media platforms.
IBD 50 Stocks On The Move
The IBD 50 ETF, a measure of growth stocks, was up 0.1%, holding up better than the major indexes.
Earthstone Energy rallied 3.2%, as energy stocks pull ahead.
Chinese chemical company Daqo New Energy fell 5.1% in light volume.
Semiconductor company Axcelis Technologies relinquished an additional 3.5% after Friday's drop of 11.6%. Shares are below the 21-day exponential moving average.
