The Dow Jones Industrial Average moved higher in today’s stock market, continuing Tuesday’s rise. But the Nasdaq struggled to hold its gains from Monday and traded sharply lower.
X
Stock Market Today
An hour before the close, the Dow Jones industrials were trading up nearly 0.7%. The Nasdaq composite traded down 1.6%, leading the upside. The S&P 500 erased earlier gains and traded down 0.1%, while the Russell 2000 small-cap index eased 0.2%. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Monday.
The S&P 500, the best performing index of 2021, also scored a new high of 4,818.62 before turning lower on Tuesday.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) continued to underperform the major indexes and traded down over 1.6% in afternoon trading. The index undercut its 21-day line after reclaiming this level last week. Shares continue to find resistance at the 200-day line.
Among the S&P sectors, energy and financial stocks led the upside with gains of over 2.5% each. On the downside, the health care and technology sectors fell the most. Industry groups leading the upside among IBD’s 197 groups included superregional banks and several oil and gas related groups. Several software-related groups led on the downside.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36833.43 | +248.37 | +0.68 |
| S&P 500 | (0S&P5) | 4791.43 | -5.13 | -0.11 |
| Nasdaq | (0NDQC ) | 15579.86 | -252.94 | -1.60 |
| Russell 2000 | (IWM) | 224.80 | -0.52 | -0.23 |
| IBD 50 | (FFTY) | 44.80 | -0.74 | -1.62 |
| Last Update: 3:00 PM ET 1/4/2022 | ||||
The 10-year Treasury bond yield continued higher on Tuesday with a rise of 4 basis points to 1.66%. This was on top of Monday’s jump of 11 basis points to 1.62%. As yields increase, several financial stocks have hit new highs and scored breakouts this week. Many of these stocks also show improving relative strength lines, a bullish indicator.
Stocks that are actionable now include Wells Fargo (WFC), investment broker Raymond James Financial (RJF) and superregional bank Comerica (CMA), to name a few.
Wells Fargo broke out above a 52.66 flat-base entry in slightly heavier-than-normal volume. WFC stock broke out over a trend line Monday. The stock is still inside the buy range, according to MarketSmith chart analysis.
Meanwhile, Raymond James Financial moved back above 103.56 entry from a flat base. The stock also moved up in heavy volume, which is bullish. Shares are nearly extended from the buy range, which tops out at 108.73. Finally, Comerica broke out above a 91.72 flat base.
Both Wells Fargo and Comerica are expected to report earnings in the coming weeks, with Wells Fargo reporting on Jan. 14 and Comerica reporting Jan. 19.
Dow Jones Today
In the Dow Jones today, stocks making notable moves predictably included financial stocks JPMorgan (JPM), Goldman Sachs (GS) and American Express (AXP). Each traded over 3% higher.
JPMorgan reclaimed its 50-day line in strong volume 173.06 flat-base entry. While the stock’s RS line ticked higher, the RS Rating is lukewarm at 64. Goldman Sachs also traded higher in strong volume and inched towards a 426.26 flat-base buy point.
Caterpillar (CAT) was the top percentage gainer in the Dow Jones, up 5%. The maker of construction and mining equipment has finally reclaimed its 200-day moving average, which was a resistance level in early November.
On the downside, tech and networking stocks underperformed. Microsoft (MSFT), Cisco (CSCO) and Salesforce.com (CRM) all fell more than 2% as tech stocks came under pressure.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
YOU MIGHT ALSO LIKE:
IBD’s Market Outlook: A Guide To The Different Designations
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros
The post Dow Jones Rises, Nasdaq Pulls Back; Financial Stocks Break Out On Rapidly Rising Yields appeared first on Investor’s Business Daily.
