The Dow Jones Industrial Average slid in today’s stock market while the Nasdaq composite led losses after falling over 2%. The major indexes broke below key levels of support on Monday, indicating lower chances of a rebound.
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Dow Jones In The Stock Market Today
At around 12 p.m. ET, the Dow Jones industrials were trading down 1.4%. The Nasdaq composite lost around 2%. The S&P 500 declined 1.6%, while the Russell 2000 small-cap index fell 1.5%. Volume was running higher on the Nasdaq and on the NYSE vs. the same time on Friday, a bearish sign.
Indexes fell below key areas of support. The Nasdaq, which violated its 50-day moving average last week, broke below its December lows. The composite is also trading below the 15,000 level, which could have served as support. The Dow has also just crossed below its 50-day moving average in early afternoon trading, while the S&P 500 remains below this area as well.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35729.71 | -501.95 | -1.39 |
| S&P 500 | (0S&P5) | 4602.67 | -74.36 | -1.59 |
| Nasdaq | (0NDQC ) | 14644.04 | -291.86 | -1.95 |
| Russell 2000 | (IWM) | 212.85 | -3.22 | -1.49 |
| IBD 50 | (FFTY) | 40.97 | -0.95 | -2.27 |
| Last Update: 11:46 AM ET 1/10/2022 | ||||
Following last week’s stock market losses, it’s an important time to read IBD’s The Big Picture.
Friday’s The Big Picture commented: “Growth investors should be defensive at this point. Some new buys in the energy and financial sectors are probably working well but aggressively increasing exposure doesn’t make sense, particularly in the technology sector. Keep stocks on your watchlist showing relative strength. Some may be finding support at a key level, while others may still be near buy points.”
The 10-year Treasury bond yield continued rising, to 1.79% on Monday, after a gain of well over 20 basis points last week. Financial stocks outperformed as the Financial Select Sector SPDR (XLF) gained 1.2%. Energy stocks led the upside with a 1.4% gain in the Energy Select Sector SPDR ETF (XLE). Shares of the energy ETF broke out last week above a 59.51 flat-base entry. The ETF remains in the buy range, which tops out at 62.48.
The Innovator IBD 50 ETF (FFTY) fell more than 2% Monday. The IBD 50 index traded at its lowest level since March of last year. Growth stocks have suffered as bond yields continue to increase. Rising yields tend to make riskier, high-growth opportunities less appealing for investors.
Stocks Making Notable Moves
Several financial stocks are forming new bases with buy points, including Stifel Financial (SF), Western Alliance Bancorp (WAL) and SVB Financial (SIVB). Stifel is roughly 6% away from a new 78.70 buy point. The stock is nearing its 50-day line.
Elsewhere, Customers Bancorp (CUBI) reached the 20% profit target from its 61.58 buy point.
As for leading stocks in the MarketSmith Growth 250 index, East West Bancorp (EWBC) broke out above an 87.87 buy point from a cup base. But shares faded from the buy point in afternoon trading. The stock remains just 2% below this level. The stock’s volume has been high in recent days, a bullish indicator for the breakout.
East West stock is part of the Southwest Banks industry group, which ranks a strong No. 20 out of the 197 groups IBD measures, according to MarketSmith.
Meanwhile, regional bank stocks underperformed slightly on Monday as the SPDR S&P Regional Bank ETF (KRE) fell 0.9%. But the ETF still remains inside a buy zone from a 75.86 buy point.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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