The Dow Jones Industrial Average lifted off intraday lows on Monday afternoon but still traded lower. The major stock indexes continued to digest last week’s bearish developments, seeking out support at key price levels.
Dow Jones, Nasdaq Off Morning Lows
The Dow was down 0.1% at 2 p.m. ET while the S&P 500 also traded 0.1% lower. Small caps lost ground as well, with the Russell 2000 index losing 0.2%. The Nasdaq fell 0.3%.
Volume was lower on the Nasdaq and NYSE, compared to the same time on Friday.
Crude oil futures launched higher, up 3.3%. The commodity traded around $96.12 per barrel on Monday afternoon.
The 10-year Treasury yield rose sharply as well, extending last week’s strong gains to 3.11%.
U.S. Stock Market Today Overview
|Last Update: 1:24 PM ET 8/29/2022|
Stocks struggled to regain their footing on Monday after last week’s major sell-off.
The downside erupted on Friday after Fed Chairman Jerome Powell gave hawkish remarks in Jackson Hole, Wyo.
July was the best month for major indexes since late 2021, while August started off strong.
Unfortunately, 200-day moving average resistance came into play midmonth, triggering a substantial downturn.
The major indexes now face a test of support at their 50-day lines.
The energy sector led the upside on Monday while technology stocks underperformed. The Energy Select Sector SPDR (XLE) rose 2.2% and is forming the right side of a cup base, with 93.41 buy point.
Dow Jones Component Chevron Leads
Chevron (CVX) led the upside in the Dow Jones on Monday, as shares gained 1.4% in afternoon trading. The stock is approaching a 182.50 buy point of a cup base but is still 9% or so from the entry.
Investors may wish to consider a more aggressive buy point above the 164.66 short-term resistance level.
Walmart (WMT) is also leading the upside among Dow components. However, the retailer remains below support at its 200-day moving average. Shares were up 1.3% in afternoon trading.
Other components MMM (MMM) and Salesforce.com (CRM) got sold aggressively, each posting losses of 1.7%.
Netflix, Pinduoduo Lead Gainers
Outside the Dow Jones, Netflix (NFLX) booked gains of 1.6%. Shares rose on news the streaming platform may price its ad-supported tier at $7 to $9, according to a Bloomberg report.
According to the report, the firm’s soon-to-debut ad-supported service will have a lower price, compared to the $15.49 that subscribers now pay for the most popular ad-free plan.
Netflix stock has struggled so far in 2022 after a string of weak quarters triggered a major shareholder exodus. Even so, July earnings showed signs of hope as the firm booked a one million subscriber loss in the June-ended quarter, compared to the two million expected loss.
Elsewhere, Pinduoduo (PDD) jumped over 16% after the China-based e-commerce company posted strong results for the recent quarter. Shares briefly broke out above a 68.81 buy point but pulled back in afternoon trading. The stock remains just 2% below the entry.
Pinduoduo reported revenue growth of 36% on a year-over-year basis.
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