The Dow Jones Industrial Average and other indexes opened higher Friday as a volatile trading week winds down. But the Dow reversed lower early Friday alongside the S&P 500. The major indexes are all on track to close with weekly losses.
Dow Jones Today
The Dow Jones Industrial Average fell 0.3% after a higher open. The S&P 500 lost 0.2%. Small caps showed gains, with the Russell 2000 up 0.8%. The tech-heavy Nasdaq composite saw a 0.5% increase but pared gains. Volume was higher on the Nasdaq and on the NYSE vs. the same time on Thursday, according to IBD data.
The stock market had a sharp sell-off Thursday and a brief rally attempt was thwarted as the indexes sank to new 2022 lows. Thursday’s losses in the Nasdaq easily wiped away Wednesday’s 2.5% gain.
Investors should stay engaged with the market and be the on the lookout for a positive session, which would be the start of a new rally attempt.
U.S. Stock Market Today Overview
|Last Update: 10:22 AM ET 6/17/2022|
The 10-year Treasury yield ticked lower to 3.2%, but is still holding near its highest level since April 2011. U.S. oil prices reversed lower as West Texas Intermediate traded around $115 a barrel. In early March, WTI briefly hit highs above $130 a barrel.
Outside Dow Jones: China Stocks Outperform
Outside the Dow Jones, the growth-focused IBD 50 ETF (FFTY) was down more than 1% after it got turned away at its 50-day line last week. Stocks leading the upside in the index on Friday include China solar energy stock Daqo New Energy (DQ), which gained over 8% in early trading.
Several U.S. listed Chinese stocks showed gains amid hopes for improving economic conditions in China, including Alibaba (BABA) and fellow e-commerce giants JD.com (JD). The two China stocks traded up 4% and 5%, respectively.
JD.com moved closer toward its 200-day line, despite Chief Executive Xin Lijun telling Bloomberg on Friday that consumers are curbing discretionary spending. But he sees a recovery during the second half of the year.
China electric-vehicle startups Nio (NIO), Xpeng (XPEV) and Li Auto (LI) all rallied as well, up 6%, 8% and 5%, respectively.
Li Auto On Track For Sixth Weekly Gain
Fellow IBD 50 stock Li Auto is on track for its sixth-straight week of gains as the stock rises nearly 12% this week. The stock has been on a tear since it reported strong earnings on May 10 and remains well above key moving averages.
A handful of IBD 50 stocks also were testing support at their 50-day lines, including chemicals maker Sociedad Química y Minera de Chile (SQM), meat products producer Pilgrims Pride (PPC) and HighPeak Energy (HPK). But coal stock Ramaco Resources (METC) slid below the line.
Investors should watch for a bounce at these key areas of support because they may offer buy opportunities late on.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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