The stock market rose Tuesday morning after a three-day U.S. holiday, breathing life back into the market after last week's drubbing. Technology and energy stocks led gains.
The Nasdaq composite jumped 2.9% and the S&P 500 gained 2.4%. The Dow Jones Industrial Average rose 1.8%. The small-cap Russell 2000 gained 2.1%.
Stocks are rebounding from more than a week of heavy selling, which saw the major indexes drop between 4.8% and 5.8%.
Volume was lower on both the Nasdaq and the NYSE compared with the same time on Friday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30413.16 | +524.38 | +1.75 |
| S&P 500 | (0S&P5) | 3761.92 | +87.08 | +2.37 |
| Nasdaq | (0NDQC ) | 11111.06 | +312.71 | +2.90 |
| Russell 2000 | 168.70 | +3.52 | +2.13 | |
| IBD 50 | 28.47 | +0.95 | +3.45 | |
Last Update: 11:52 AM ET 6/21/2022 |
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Apple shot up more than 3%. Microsoft rose 2.5%.
Tech Stocks Jump As Stock Market Rebounds
Amazon.com also gained more than 3%, leading the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR ETF gained 3.1%. In spite of Tuesday's gain, Amazon is just starting to rebound from lows going back to April 2020 and is still well below its 50-day moving average.
Asian stocks rebounded sharply Tuesday. Japan's Nikkei 225 index was gained 1.8%, while the Hong Kong Hang Seng Index was up 1.9%. European stocks eased up, with the London FTSE 100 up 0.4%, the German DAX index up 0.2%, and France's CAC 40 up 0.7%.
The 10-year U.S. Treasury note's yield climbed 4 basis points to 3.27% Tuesday. Meanwhile, crude oil prices rose 1.5% to $111.25 per barrel.
Kellogg said early Tuesday that it will split into three independent companies, focusing on global snacks, U.S. cereals and plant-based products, respectively.
Kellogg stock gained 4%, bringing the stock above the 50-day moving average and breaking a downward-sloping trendline. Kellogg stock has a 75.66 buy point in a flat base that formed just above a double-bottom base.
Tesla, Lennar Gain On Company News
Tesla shares jumped nearly 10% after CEO Elon Musk said in Doha Tuesday that Tesla will cut 10% of salaried staff over three months, projecting a near-term recession as more likely than not. But hourly production workers should increase he said. Job cuts have already been underway over the past week or so.
Homebuilder Lennar gained 2. 7%, erasing early gains of more than 5% after reporting better-than-expected earnings and revenue during the second quarter. Per-share earnings leapt 59% with revenue up 30%. That comes as soaring mortgage rates appear to be chilling housing demand.
Existing-home sales fell 3.4% to 5.41 million at a seasonally-adjusted annual rate in May, meeting Econoday's consensus forecast. April was revised down slightly to 5.60 million from 5.61 million. Existing-home sales fell 8.6% year-over-year after surging 45.5% in the same terms in May 2021.
"The housing market is cooling after running red-hot in 2020 and 2021," said Bill Adams, Chief Economist for Comerica Bank. "Fundamental demand for housing is higher than pre-pandemic because of the rise of remote work and changes in lifestyles, but tighter monetary policy is a big headwind to the housing market."
Exxon Mobil Leads Big Oil Stocks
Oil stocks soared Tuesday, with the Energy Select SPDR ETF gaining 2.9%. Exxon Mobil jumped 5.6%, back into its buy zone past a 89.90 entry off its recent cup-with-handle formation.
French biotech company Valneva stock rocketed 85% Tuesday on a $95 million investment from Pfizer, its Lyme disease vaccine partner.
Also, AT&T gained 2% and had its Relative Strength (RS) Rating upgraded from 86 to 91 Tuesday.
The Innovator IBD 50 ETF, a bellwether for growth stocks, rose 4.2%, led by oil and coal stocks.
Fertilizer stocks also jumped, with CF Industries and Nutrien gaining more than 4%.
Follow Michael Molinski on Twitter @IMmolinski
