The Dow Jones Industrial Average, Nasdaq and S&P 500 continued to pull lower on Tuesday to start the shortened trading week. Investors continue to watch tensions between Russia and the Ukraine while corporate earnings also remain a factor.
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Stock Market Today
At around 1:45 p.m. ET, the Dow Jones industrials were down 1.7%, trading near session lows and moving further below resistance at the 200-day moving average. The Nasdaq composite lost 1.6% after it got turned away at its 21-day exponential moving average last week.
The S&P 5oo declined 1.5% and also fell further below its 200-day moving average. The yield on the 10-year Treasury note rose slightly to 1.94%, after recently spiking above 2% on concerning inflation data.
As of Tuesday, the odds for a Fed funds rate in March of 0.25% to 0.50% had increased to 71%, compared with 29% for a target rate of 0.50% to 0.75%, according to the CME Group’s FedWatch tool, which tracks interest rate futures.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33579.63 | -499.55 | -1.47 |
| S&P 500 | (0S&P5) | 4298.25 | -50.62 | -1.16 |
| Nasdaq | (0NDQC ) | 13355.00 | -193.07 | -1.43 |
| Russell 2000 | (IWM) | 196.94 | -2.53 | -1.27 |
| IBD 50 | (FFTY) | 36.62 | -0.55 | -1.48 |
| Last Update: 1:38 PM ET 2/22/2022 | ||||
The Russell 2000 traded down 1.6%. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Friday. This is a bearish indicator, as selling in heavy volume often indicates the force of institutions distributing shares back into the market.
Ongoing geopolitical tensions are contributing to much of the market’s volatility. Indexes fell further on Tuesday after Russian troops moved into the Donbas region of Ukraine after Vladimir Putin recognized two areas with separatist activities as independent states.
Western nations condemned the moves and imposed new sanctions on Russia.
Meanwhile, the price of U.S. crude oil rose 1.8% to $92.74 a barrel. Brent crude climbed close to $100 a barrel.
Dow Jones Today
As for Dow Jones stocks, retail component Home Depot (HD) fell below its 200-day moving average, an important level of support
Shares sank more than 9% in heavy volume despite the home improvement chain topping sales and earnings expectations in an earnings report released early Tuesday. Same-store sales rose 8.1% for the January-ended quarter. Home Depot also raised its quarterly dividend by 15% to $1.90 a share.
Elsewhere in the Dow Jones, Nike (NKE) and Boeing (BA) fell over 4% each. Boeing broke below support at its 50-day line, a bearish sign, while Nike continued lower below resistance at its 21-day line.
Growth Stocks Making Moves
The Innovator IBD 50 ETF (FFTY) lost 1.5% and was hindered by losses in Alpha & Omega Semiconductor (AOSL), Skyline Champion (SKY) and CarGurus (CARG), which fell more than 5% each.
Skyline currently holds a spot on the watchlist section of IBD Leaderboard.
A majority of stocks in the IBD 50 traded lower, while a few from the shipping, oil and gas, and mining industry groups traded higher.
Shipping leaders Matson (MATX) and Global Ship Lease (GSL) rose over 2.5% each. Meanwhile, natural resource stocks like gold and silver miner Sibanye Stillwater (SBSW) and oil and gas machinery maker Cactus (WHD) held gains of over 1% each. Cactus was featured in IBD’s New America section last week.
Energy leaders Diamondback Energy (FANG) and Matador Resources (MTDR) will report after the close Tuesday. Diamondback shares are extended from a 117.81 buy point within a shallow eight-week consolidation pattern and are testing support at the 21-day line after falling nearly 3% in afternoon trading Tuesday.
Matador also sank ahead of earnings, falling over 3%. Shares remain above its 50-day line after a failed breakout past a 47.33 cup-base entry but are undercutting the 21-day line.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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The post Dow Jones, Nasdaq Extend Losses While Natural Resource Stocks Lead IBD 50 appeared first on Investor’s Business Daily.
