After a difficult last few days, the Dow Jones Industrial Average finally closed Tuesday’s session higher while the Nasdaq composite and the S&P 500 also posted strong gains. In complete opposite fashion to yesterday’s action, technology and consumer discretionary stocks led the upside as the gains continued to build into the close.
The majority of the S&P 500 sectors traded in the positive. But energy stocks, which led the downside in yesterday’s session, also traded in the negative Tuesday. The Energy Select Spider ETF (XLE) lost roughly 3.8% and remains down more than 7% for the week. Meanwhile, the Technology Select Spider ETF (XLK) gained over 3%, regaining all of yesterday’s losses.
Dow Jones In The Stock Market Today
The indexes continued to rise into the close on Tuesday. The Dow Jones industrials held a gain of 1.8% while the Nasdaq rose over 2.9% and the S&P 500 advanced 2.1%. The Russell 2000 traded 1.5% higher as small-cap stocks lagged relative to the major indexes.
Early data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Monday. Indexes have recently been selling off in heavier volume and rising in lighter volume, which isn’t a great sign for bullish investors. When indexes sell off into the close in heavy volume, this typically indicates institutional distribution rather than accumulation.
U.S. Stock Market Today Overview
|Last Update: 4:22 PM ET 3/15/2022|
On the bright side, however, the indexes all remained above their lows from Feb. 24, which is a hopeful sign. Ideally the indexes will continue to hold above this area of potential support.
U.S. crude oil futures fell to $95.96 a barrel, down roughly 6.8% after declining 7% in Monday’s market. Oil has plunged 27% from the high above $130 on March 7, even as the U.S. banned imports of Russian oil.
As oil prices declined, travel stocks reversed sharply higher after being beaten down in recent sessions. Many gapped up and a few even reclaimed key moving averages. American Airlines (AAL) advanced 9.3% and barely reclaimed its 21-day line, while United Airlines (UAL) and Delta Air Lines (DAL) rose 9.2% ad 8.8%, respectively. Hotel operator Marriott International (MAR) gained 2.9% and reclaimed its 50-day line while travel booking stock Expedia (EXPE) rose 5.2% and also regained its 50-day moving average.
Investors are now turning their attention to the Federal Reserve’s two-day meeting, which kicked off today. The meeting will conclude with the Fed’s decision to raise or not raise interest rates. The decision will be announced at 2 p.m. ET on Wednesday. Economists widely expect the central bank to raise rates by a quarter percentage point, which would be the first increase since 2018.
The yield on the 10-year Treasury note reversed higher in afternoon trading on Tuesday, and continued to rise above 2%. The yield closed around 2.16%.
IBD 50 Stocks: Health Care Leaders Near Buy Points
Alongside the major indexes, the Innovator IBD 50 ETF (FFTY) rose 1.9% and recouped some of its losses from Monday. The ETF was led by gains in online automotive marketplace CarGurus (CARG) and SolarEdge Technologies (SEDG), which rose roughly 7% and 6%, respectively.
Elsewhere, IBD 50 stock Costco (COST) rose over 3% and neared a new 545.39 buy point of a cup-with-handle base. Shares remain just 1% away from the breakout. Meanwhile, the stock’s RS line also hit a new high, a very bullish sign.
IBD 50 stock and leading health care company UnitedHealth Group (UNH) inched ever closer toward a buy zone. The stock rose over 2% on Tuesday and is now up more than 3% for the week. Shares are now less than 1% away from the 501.03 buy point of a double-bottom base. The stock’s RS line also hit a new high on Tuesday ahead of the breakout, a bullish sign.
Fellow health care stock Molina Healthcare (MOH) scored a breakout on Tuesday, with shares rising over 6.2% and closing near intraday highs. The breakout did not occur in heavy volume, which is important to note as a potential weakness in the stock. But the stock’s RS line did reach a new high, which is a good sign. Several managed care stocks have outperformed in recent weeks as the industry group remains a safe haven for investors.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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