The Dow Jones Industrial Average gained as growth stocks got spanked. Bank of America (BAC) passed a buy point as financial stocks flourished. Bitcoin was diving again, hitting Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC). Discovery (DISCA) popped on an upgrade but New York Times (NYT) plunged.
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The stock market struggled following a disappointing jobs report. The Labor Department reported U.S. employers added 199,000 jobs in December. That was about half what economists polled by Econoday had expected. It was also a big decline from the 249,000 jobs created in November.
The unemployment rate dropped to 3.9% from 4.2% the prior month. Economists had forecast 4.1%.
Nasdaq Dives, Growth Stocks Get Walloped
The tech heavy Nasdaq was getting hit again, falling 0.6%. China e-commerce play Pinduoduo (PDD) was doing well again, rising nearly 8%. Payments stock MercadoLibre (MELI) lagged, falling more than 6%.
The S&P 500 was giving up slight ground, edging 0.1% lower. D.R. Horton (DHI) lagged most, falling nearly 6% as the homebuilder struggled.
U.S. Stock Market Today Overview |
||||
---|---|---|---|---|
Index | Symbol | Price | Gain/Loss | % Change |
Dow Jones | (0DJIA) | 36358.21 | +121.74 | +0.34 |
S&P 500 | (0S&P5) | 4691.67 | -4.38 | -0.09 |
Nasdaq | (0NDQC ) | 14988.49 | -92.38 | -0.61 |
Russell 2000 | (IWM) | 217.01 | -1.59 | -0.73 |
IBD 50 | (FFTY) | 42.16 | -0.90 | -2.09 |
Last Update: 3:00 PM ET 1/7/2022 |
The S&P 500 sectors were mixed. Energy and financials performed best while technology and consumer discretionary were the worst laggards.
Small caps were also getting mauled by the bears. The Russell 2000 was down 0.7%.
But it was growth stocks that were taking the biggest spanking. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell more than 2%.
Dow Jones Today: Boeing Stock Takes Off
The Dow Jones Industrial Average bucked the broader trend by moving higher. It was up a slender 0.3% as it gained over 100 points.
Boeing (BA) was one of the top performers, rising more than 2%. It remains stuck beneath its 200-day moving average.
But it was Walgreens Boots Alliance (WBA) that was faring best on the Dow Jones today. It rose just over 3%. Home Depot (HD) was the biggest laggard, falling more than 2%.
Bank Of America Passes Buy Point As Bank Stocks Flex
Financial stocks are continuing to rally on the prospect the Federal Reserve will rise interest rates quicker than previously expected.
Banking giant Bank of America managed to break past a cup-without-handle base buy point of 48.79.
The stock formed an orderly looking pattern despite a volatile market, MarketSmith analysis shows. The stock’s relative strength line has just hit a new high, a bullish indicator.
While volume is not ideal, the fact it is rising amid broader downward action is impressive.
Another stock worth watching is regional banking play Western Alliance Bancorp (WAL). It is currently building a new cup base with a 124.98 buy point.
Volume has been spiking as it forms the right side of the base, which is a good sign. It bullishly reclaiming its 50-day moving average Tuesday.
Western Alliance operates in areas including Arizona, Nevada and Southern California.
Underlining strength among financials, the Invesco KBW Bank ETF (KBWB) rose 1.4%.
Bitcoin Dives Again, Hits These Stocks
Bitcoin stocks were falling as the cryptocurrency continued to fall. Bitcoin was trading for under $42,000 after falling about 4% in the past 24 hours, according to CoinDesk.
One crumb of comfort was the fact it was off lows for the day.
The digital currency has now given up almost 40% on the levels its reach in early November.
Bitcoin plays such as Coinbase Global, Grayscale Bitcoin Trust and Riot Blockchain (RIOT) were all hit.
Cryptocurrency exchange COIN slipped nearly about 1.5% while GBTC fell about 4%.
Bitcoin miner RIOT was off lows for the day but remained down almost 1%.
Media Stocks: Discovery Soars, New York Times Dives
There was some interesting movement in the media space amid upgrade and acquisition news.
Discovery roared 17% higher after Bank of America upgraded the stock to buy due to its mooted merger with Warner Media.
Analysts believe the new firm could create a strong rival to media powerhouses Netflix (NFLX) and Walt Disney (DIS) in the streaming space.
Meanwhile New York Times was plunging on news it is to buy sports news site The Athletic for $550 million. It is expected that transaction will close in the first quarter of this year.
New York Times stock was trading near lows as it gave up more than 10%. It is now near 12-month lows.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Gains, Growth Stocks Crushed; Bitcoin Dives Again; Bank Of America Does This As Financials Thrive appeared first on Investor’s Business Daily.