The Dow Jones Industrial Average rose slightly in today’s stock market, extending its year-end rally. But the other major indexes traded mixed as the Nasdaq and S&P 500 declined in afternoon trading.
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Stock Market Today
An hour before the close, the Dow Jones industrials were up 0.3%. The Nasdaq composite fell 0.4%, leading the downside, while the S&P 500 was mostly flat. Meanwhile, the Russell 2000 slid 0.3%. Data showed volume was running lower on the Nasdaq and the NYSE vs. the same time on Monday.
The major indexes paused Tuesday after last week’s rally which spilled over into Monday’s session. Defensive sectors such as utilities led the upside on Tuesday. Materials stocks also outperformed. On the downside, technology and health care fell. The Technology Select Sector SPDR (XLK) fell the most with a 0.5% loss.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36427.81 | +125.43 | +0.35 |
| S&P 500 | (0S&P5) | 4789.64 | -1.55 | -0.03 |
| Nasdaq | (0NDQC ) | 15801.31 | -69.95 | -0.44 |
| Russell 2000 | (IWM) | 223.50 | -0.62 | -0.28 |
| IBD 50 | (FFTY) | 45.70 | -0.39 | -0.85 |
| Last Update: 3:20 PM ET 12/28/2021 | ||||
Two cyclical industry groups that led the upside among the 197 groups IBD measures included airlines and shipping transportation stocks. Both groups rose over 1% each.
At the end of last week, IBD’s market outlook improved to a confirmed uptrend. The Nasdaq and S&P 500 are now both above their 50-day moving averages, and the Nasdaq climbed above a trend line traced above its highs from the November peak. With a handful of stocks showing improved relative strength and promising setups, investors may consider adding exposure to stocks that are performing well. But do so cautiously and remember that volatility remains high.
In economic news, the S&P CoreLogic Case-Shiller 20-city home price index rose 0.8% in October, missing economists’ estimates for a 1% increase. On a year-over-year basis, the index jumped 18.4%, slightly below the consensus estimate of 18.6%. The SPDR S&P Homebuilders ETF (XHB) rose 0.2% and continues to rise from a pullback to the 50-day moving average.
Dow Jones Today
In the Dow Jones today, stocks leading the upside included Disney (DIS) and Boeing (BA), which rose over 1.5% apiece. Disney reclaimed its 21-day line near the end of last week but still remains below its 50-day and 200-day lines. The stock has had a difficult 2021 and shares remain down 14% for the year.
Elsewhere, Boeing also traded above its 21-day line and is now testing resistance at the 50-day moving average. Ethiopian Airlines and Indonesia plan to restart flights of the 737 Max, according to reports early Tuesday.
On the downside, tech leaders Apple (AAPL) and IBD Leaderboard stock Microsoft (MSFT) underperformed with losses of less than 0.5% each. Salesforce.com (CRM) led the downside with a 0.8% decline.
Apple remains close to a 20% profit zone from a 153.26 cup-with-handle buy point. Shares initially broke out Nov. 17 and have floated higher above their 21-day line since then. This is a key sign of strength. Elsewhere, Microsoft is holding above its 10-week moving average as it forms a flat base.
Stocks Making Notable Moves
The Innovator IBD 50 ETF (FFTY) lost steam after last week’s powerful rally to reclaim the 21-day line. Shares fell roughly 0.7% on Tuesday after finding resistance at the 200-day line.
On Tuesday, several top stocks in the MarketSmith Growth 250 index scored breakouts, including three stocks in building-related industry groups. Eagle Materials (EXP), heavy-construction play KBR (KBR) and building maintenance stock Installed Building Products (IBP) all scored breakouts from proper entries. Each stock broke out from a flat base on their weekly chart.
Additionally, semiconductor manufacturer Allegro Microsystems (ALGM) staged a powerful breakout early, but the stock faded badly off highs.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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The post Dow Jones Holds Modest Gain While Nasdaq, S&P 500 Lag; Several Stocks Are Actionable Now Amid Current Rally appeared first on Investor’s Business Daily.
