The Dow Jones Industrial Average pared early losses in today’s stock market and turned positive, extending its weekly gains. The Nasdaq, however, continued to diverge lower as tech shares added to Tuesday’s sharp losses. The S&P 500 also declined ahead of minutes from the Federal Reserve’s December policy meeting, which are due out at 2 p.m. ET.
X
Stock Market Today
At around 12 p.m. ET, the Dow Jones industrials were trading up 0.2%. The Nasdaq composite traded down 0.8%, extending Tuesday’s 1.3% decline. The S&P 500 fell close to 0.2%, while the Russell 2000 small-cap index reversed lower and lost 0.4%. Data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Tuesday.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) continued to underperform the major indexes and traded down over 1.4%. Growth stocks have suffered in recent sessions as bond yields continue to increase. Rising yields tend to make riskier, high-growth opportunities less appealing for investors.
The 10-year Treasury bond yield held steady after Tuesday’s rise of 4 basis points to 1.66%. Monday’s jump of 11 basis points was unusually high. Meanwhile, several financial stocks hit new highs and scored breakouts thanks to the rapidly rising rates. Financial leaders still actionable now after moving above buy points this week include Raymond James Financial (RJF) and Ameriprise Financial (AMP).
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36934.36 | +134.71 | +0.37 |
| S&P 500 | (0S&P5) | 4786.65 | -6.89 | -0.14 |
| Nasdaq | (0NDQC ) | 15470.45 | -152.27 | -0.97 |
| Russell 2000 | (IWM) | 223.94 | -1.04 | -0.46 |
| IBD 50 | (FFTY) | 44.37 | -0.67 | -1.49 |
| Last Update: 12:20 PM ET 1/5/2022 | ||||
Elsewhere, the SPDR S&P Regional Bank ETF (KRE) rose 1% and is up 5.7% for the week. Shares are 1% away from a 75.86 flat-base entry.
Regional bank stock Signature Bank (SBNY) is among the latest among financials to break out above a proper entry. Shares gained close to 3% and broke out above a 342.13 cup buy point.
The relative strength line can be seen reaching a new high on the weekly chart, a bullish sign. The stock is part of the Northeast banks industry group, which ranks No. 19 out of the 197 groups IBD measures, according to MarketSmith.
Energy Stocks Actionable Now
Energy stocks also continued to rally as crude oil prices rose 1.6% and traded near 78.20 a barrel. EOG Resources (EOG) and Diamondback Energy (FANG) are following through on breakouts from Tuesday. EOG Resources is up around 0.4% while Diamondback gained over 1%. Both stocks are still inside their 5% buy zones.
Pioneer National Resources (PXD) traded just below a 196.74 proper buy point. The shale stock is still actionable now after breaking out above a trendline Tuesday.
Two other energy leaders Marathon Petroleum (MPC) and Marathon Oil (MRO) broke out Wednesday morning. Marathon Petroleum ascended above a 68.88 buy point in a flat base. Meanwhile, Marathon Oil opened above a 17.69 cup-base entry, but shares faded gains in early afternoon trading.
Dow Jones Today
In the Dow Jones today, stocks making notable moves predictably included Intel (INTC), which rose over 4%. The chip maker and major rival to firms like Nvidia (NVDA) and AMD (AMD) announced that it started shipping its Intel Arc discrete graphics chips aimed at PC gamers.
The company made several new product announcements at its CES 2022 press conference Tuesday, including its new EyeQ Ultra system-on-a-chip for autonomous vehicles. Shares gapped up to regain their 200-day line, a positive sign.
On the downside, Microsoft (MSFT) and Salesforce.com (CRM) fell over 2% and 5% respectively. Microsoft stock continues to decline below its 50-day line after breaking this level of support on Tuesday.
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 Diverges Lower; Financials, Energy Stocks Trade In Key Buy Zones appeared first on Investor’s Business Daily.
