The Dow Jones Industrial Average, Nasdaq and S&P 500 pulled back on Wednesday after posting strong grains on Tuesday. The market erased much of its prior gains and remains highly dependent on news related to the Ukraine crisis. Corporate earnings continue to weigh on the market as well this week.
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Stock Market Today
At around 1:30 p.m. ET, the Dow Jones industrials were down 0.8%, after the index fell back below its 200-day moving average. The Nasdaq composite lost 1.3 % as it got turned away at the 21-day exponential moving average, a current resistance level.
The S&P 5oo declined 0.7% and moved back below its 200-day moving average after reclaiming this area on Tuesday. The yield on the 10-year Treasury note held steady at around 2.03%, after spiking to this level on last week’s concerning inflation data.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34687.28 | -301.56 | -0.86 |
| S&P 500 | (0S&P5) | 4436.43 | -34.64 | -0.77 |
| Nasdaq | (0NDQC ) | 13963.06 | -176.70 | -1.25 |
| Russell 2000 | (IWM) | 204.44 | -1.62 | -0.79 |
| IBD 50 | (FFTY) | 37.97 | -0.19 | -0.50 |
| Last Update: 1:46 PM ET 2/16/2022 | ||||
The Russell 2000 traded down 0.6%. Data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Tuesday. The Innovator IBD 50 ETF (FFTY) lost 0.5% after finding resistance at the 21-day line last week.
The indexes rose sharply on Tuesday after Russia announced it was withdrawing some troops from around Ukraine. But a top NATO official said Russia continues its military buildup in the region. Talks on de-escalating the crisis continued Wednesday.
After the downgrade in IBD’s market outlook to “uptrend under pressure” last week, investors should be very conservative with new buys and hesitant to buy stocks. According to Tuesday’s Big Picture column, “with a modicum of outstanding breakouts, few stocks reaching new highs, and many past stock market leaders still locked in repair-and-rebuild mode, the strong rebound on Wall Street does not justify changing the outlook for stocks.”
Travel Stocks Move On Earnings
Airbnb (ABNB) posted earnings after the close on Tuesday, beatings analysts estimates for revenue, earnings and gross bookings. Revenue climbed 78% year over year to $1.53 billion vs. $1.46 billion expected. Meanwhile, adjusted earnings per share reached 8 cents versus the 7 cents expected, and gross bookings totaled $11.3 billion, also exceeding expectations.
The vacation rental company climbed 4.3% on Wednesday, extending a rebound from its Jan. 28 low. Shares are forming the right side of a cup base and remain around 12% away from the proper entry of 212.68. The RS line is rising steadily alongside the stock price, while volume has also been increasing in recent sessions.
Elsewhere, another stock in the lodging industry group scored a breakout. Wyndham Hotels & Resorts (WH) broke out above a 91.51 flat-base entry, before fading from the buy point in afternoon trading. Shares turned negative and fell roughly 0.3%. If the stock can regain the buy point before the close, it would be a positive sign. The stock’s RS line is hitting a new high on the weekly chart as well.
On Tuesday, Wyndham reported that earnings vaulted 886% to 69 cents per share, beating estimates of 54 cents per share for the quarter. Meanwhile, revenue per available room for the quarter exceeded 2019 levels by 9%, growing 58% vs. 2020.
Finally, Hilton Worldwide (HLT) delivered a mixed fourth-quarter report Wednesday. Analysts expected Hilton to show EPS of 73 cents per share vs. a loss of 10 cents a year ago. The company reported adjusted EPS of 72 cents, just shy of the analyst target. However, sales rose 106% to $1.84 billion, beating estimates for $1.807 billion.
The stock broke out briefly from a 159.31 cup-base entry. The stock’s RS line reached a new high alongside the breakout. Shares faded from the proper entry, however, and remain 2% below the buy point.
Outside The Dow Jones: Stocks To Watch
Nvidia (NVDA) is set to announce results after today’s close. The chip designer is expected to earn $1.22 a share, an increase of 58%, on sales of $7.40 billion, up 48%, according to FactSet. Nvidia fell 2.6% Wednesday afternoon, but the stock is still up over 7% for the week.
Shares have regained support at their 21-day line but remain below the key 50-day moving average.
In the MarketSmith Growth 250, U.K.-based Cushman & Wakefield (CWK) moved past a 22.87 buy point of a flat base, rising more than 4.3%. The stock’s relative strength line is hitting a new high on the weekly chart, a bullish sign.
Nabors Industries (NBR), an oil and gas drilling firm, rose above a 130.35 buy point of a long consolidation. Another entry is at 127.10. The stock has come a long way off its highs in recent years but appears to be staging a turnaround after bottoming in October. Nabors is part of the drilling industry group, which ranks No. 4 out of the 197 groups IBD measures.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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