The stock market continued a new year’s slump as the S&P 500 and Nasdaq composite fell below levels where there once was hope of a rebound.
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The stock indexes slid more than 1%. The S&P 500 fell 1.4% and is now below its 50-day moving average.
The Nasdaq composite, which violated its 50-day line last week, broke below its December lows also. It appeared the Nasdaq would fight for the 15,000 level, but the composite now trades around 14,628, down 2.1% on the day.
The Dow Jones Industrial Average slid 1.1%. It remains barely above its 50-day line. The Russell 2000 fell 1.2%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35850.28 | -381.38 | -1.05 |
| S&P 500 | (0S&P5) | 4610.61 | -66.42 | -1.42 |
| Nasdaq | (0NDQC ) | 14628.82 | -307.08 | -2.06 |
| Russell 2000 | (IWM) | 213.39 | -2.68 | -1.24 |
| IBD 50 | (FFTY) | 41.28 | -0.64 | -1.53 |
| Last Update: 10:12 AM ET 1/10/2022 | ||||
Volume rose on the NYSE and Nasdaq compared with the same time on Friday. Declining stocks outnumbered advancers by 5-to-1 on the NYSE and Nasdaq.
QQQ Falls Below 50-Day Line
Invesco QQQ Trust (QQQ) slid more than 1% and undercut its December lows. The Nasdaq 100-tracking ETF is now 5.8% below its 50-day moving average.
The stock market has been under pressure since last week, as the new year gets off to a bad start.
Growth and technology stocks have been hit harder than many others. The iShares Russell 1000 Growth ETF (IWF) slid nearly 5% last week, and lost 2% more this morning. The growth ETF, much like the Nasdaq, broke below the December lows.
Technology Select Sector SPDR (XLK) fell 4.6% in the first week of 2022, the second worst S&P sector after real estate. The tech sell-off continued Monday with a drop of more than 2% in the index.
Alphabet (GOOG) class C shares fell 2.4% to the 200-day moving average. Microsoft (MSFT) and Nvidia (NVDA) also are below December lows. Online retailer Amazon.com (AMZN), another major U.S. stock, lost more than 3% and is at the lowest level since May.
The IBD 50 plunged 9.2% last week and is 9% below its 40-week moving average. That’s the deepest since the March 2020 Covid-19 crash. Innovator IBD 50 ETF (FFTY) was down 2.2% Monday morning.
Stock Market Leaders Under Stress
Multiple IBD 50 stocks are flashing sell signals while others give back gains.
Atlas Air Worldwide (AAWW) fell 2% and is more than 8% below its 95.10 buy point, which caused a sell signal. AMN Healthcare Services (AMN) also fell more than 8% from its buy point. AMN, a health care staff outsourcing firm, today issued preliminary Q4 results, saying it expects revenue of $1.35 billion and $1.36 billion, and operating margin and adjusted EBITDA in the range of 11.8%-12.3% and 15.3%-15.8%, respectively.
Steris (STE) is now below its 237.45 buy point. Extra Space Storage (EXR) dipped below its 50-day line in heavy trading. Lam Research (LRCX) fell below its 673.90 buy point.
Energy and financial sectors did much better last week and remain pockets of strength. Energy Select Sector SPDR (XLE) jumped 10.5% and cleared a 59.51 buy point. Financial Select Sector SPDR (XLF) rose 5.4% for the week.
In financials, Stifel Financial (SF), Western Alliance Bancorp (WAL) and SVB Financial (SIVB) are forming new bases. Customers Bancorp (CUBI) reached the 20% profit target from its 61.58 buy point.
Commercial Metals (CMC) climbed back above its 36.96 buy point after a strong earnings report this morning sent shares up more than 4%.
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