The Dow Jones Industrial Average rose moderately in early-afternoon trading while the Nasdaq traded lower. Both indexes, however, traded near intraday highs amid a difficult week for many growth stocks.
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IBD downgraded its current market outlook on Wednesday as indexes crossed below key moving averages, signaling potential weakness. But on Friday, the major indexes regained some ground.
Dow Jones Today
At around 1:30 pm ET, the Dow Jones industrials were up around 0.8% and continued above the 21-day and 50-day moving averages after finding support near these areas earlier in the week. The index is now approaching resistance at the 200-day line.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34834.80 | +251.23 | +0.73 |
| S&P 500 | (0S&P5) | 4505.18 | +4.97 | +0.11 |
| Nasdaq | (0NDQC ) | 13784.95 | -112.35 | -0.81 |
| Russell 2000 | (IWM) | 199.17 | -0.29 | -0.15 |
| IBD 50 | (FFTY) | 36.92 | +0.00 | +0.00 |
| Last Update: 1:44 PM ET 4/8/2022 | ||||
Tech stocks lagged as the Nasdaq was down 0.6%, but still traded off intraday lows. The index remains above its 50-day line and is seeking support at this level, but remains below its 21-day and 200-day lines.
The S&P 500 rose 0.1% and the Russell 2000 fell less than 0.1%. Volume fell on the Nasdaq and on the NYSE from Thursday’s light-volume rally.
The yield on the benchmark 10-year Treasury note continued to climb, reaching 2.71% on Friday. Meanwhile, West Texas Intermediate crude traded up slightly but remained below $97 a barrel.
The S&P 500 sectors traded mixed. Energy stocks led the upside with gains of over 2.5% while financials also traded up over 1%.
As interest rates continue to rise, many stocks in the financial sector may likely benefit and see their margins increase.
On the downside, technology stocks and consumer discretionary led with losses of less than 1%.
Leading The Dow Jones Today
Among Dow Jones leaders, tech giants Apple (AAPL), Salesforce.com (CRM) and Intel (INTC) traded down less than 1% but were among top decliners. On the upside, Home Depot (HD) and Goldman Sachs (GS) led with gains of roughly 2.8% each. Shares of Home Depot, which have repeatedly been turned away at the 21-day line, are approaching this area of resistance once again.
Apple stock began to slip below support at its 21-day exponential moving average but remains above its 50-day line still. Shares are now 7% off highs. The 176.75 buy point is still in play, although a break of the 50-day line would weaken its chances of a successful breakout.
A handle is also forming, which gives Apple an alternate entry point at 179.71, 10 cents above the highest price within the handle.
Please read this Investor’s Corner on why the handle on a base can be a positive development.
Growth Stocks To Watch
The Innovator IBD 50 ETF (FFTY) fell 0.5%. Earlier this week, the ETF broke below support at the 50-day line and 21-day line after finally reclaiming these areas in mid-March.
Transportation stocks fell after Bank of America downgraded multiple stocks, citing “deteriorating demand outlooks and rapidly falling freight rates.” Downgrades occurred on several stocks frequently mentioned on IBD content, including Union Pacific (UNP) and Canadian Pacific (CP), from buy to neutral.
Meanwhile, several trucking-related firms like Saia (SAIA) and ArcBest (ARCB) were downgraded from buy to underperform. Both stocks are trading well below key moving averages and sold off 1% and 3.8%, respectively after paring earlier losses. Both transportation firms have been selling off in heavy volume in recent sessions, a bearish sign.
Elsewhere, inside the MarketSmith Growth 250, shares of Shell (SHEL) broke out past a 56.23 proper buy point. The stock has been bullishly trending higher since mid-March and formed the current flat base.
Most of the base has formed above the 50-day moving average, according to MarketSmith. Year-over-year EPS growth soared 788%, 342% and 1,560% over the past three quarters after a poor 2020 for the company.
Consider This Financial Stock Breakout
Outside the Dow Jones, LPL Financial (LPLA) broke out past a 191.08 entry. After forming a V-shape cup with handle, shares broke out on Friday in above-average volume while the stock’s RS line also reached a new high. Yet the pattern shows a respectable decline from high to low that fits the parameters of an excellent cup with handle.
The company is expected to report Q1 earnings April 28. Analysts predict EPS of $1.88 a share. That’s well above the $1.46 a share it reported in the same period a year ago.
The stock got some airplay in Friday’s IBD Live show, which welcomed Alex Marenco, former William O’Neil + Co. portfolio manager, as a first-time special guest.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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