The Dow Jones and Nasdaq composite continued to strengthen into Tuesday’s close. Stocks initially opened lower after giant retail chain Target (TGT) reiterated its concerns about the economic outlook.
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Dow Jones Today
After opening in the negative, the Dow Jones Industrial Average clawed its way higher and closed Tuesday’s trading with a 0.8% gain. The S&P 500 managed to climb 0.9% while the small-cap Russell 2000 was up 1.6%, leading the upside. As for tech stocks, the Nasdaq composite rose roughly 0.9% as well. Volume was lower on the Nasdaq and on the NYSE vs. the close on Monday, according to early data.
The 10-year U.S. Treasury note fell slightly to 2.97%, after closing above 3% on Monday.
The major indexes all continue to trade tightly above their 21-day lines, an important area of support. Among S&P 500 sectors, nearly all the sectors rose, with energy and industrial stocks outperforming. Meanwhile, the consumer discretionary sector lagged and was the only sector trading negatively on Tuesday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33179.81 | +264.03 | +0.80 |
| S&P 500 | (0S&P5) | 4160.54 | +39.11 | +0.95 |
| Nasdaq | (0NDQC ) | 12175.23 | +113.86 | +0.94 |
| Russell 2000 | (IWM) | 190.86 | +2.99 | +1.59 |
| IBD 50 | (FFTY) | 34.09 | +0.96 | +2.90 |
| Last Update: 4:14 PM ET 6/7/2022 | ||||
As for IBD industry groups, several retail-related groups led the downside with losses of over 1%. Retail giants such as Dow Jones giant Walmart (WMT) and Costco (COST) initially sold off on Tuesday after a warning regarding economic conditions from Target. But all three stocks pared earlier losses and strengthened alongside the indexes into the close.
Target held its loss to around 2.3% after falling much more earlier in the session. The loss occurred in strong volume as well. The retailer warned of shrinking profits because it is overstocked with unwanted merchandise that will force it to cancel orders for more merchandise, or offer discounts to customers.
Target’s warning was triggered by a mismatch between supply in stores and shifting demand among consumers. The retailer’s announcement on Tuesday came nearly three weeks after the company missed earnings estimates due to inventory problems and higher costs, sending shares down more than 24% in a single day.
Growth Stocks Lead Upside With Strong Gains
As for growth stocks, the Innovator IBD 50 ETF (FFTY) rose a powerful 2.9%, well outperforming the Dow Jones on Tuesday. Shares finally regained support at their 50-day line for the first time since March.
Stocks leading the upside in the index included Arch Resources (ARCH) and Amphastar Pharmaceuticals (AMPH), up 11% and 10%, respectively. Arch Resources was among several coal stocks outperforming the market on Tuesday as Jefferies upgraded Arch stock to buy from hold and lifted the price target to 225 from 160. Multiple leaders in this group received several key analyst upgrades on Tuesday including Warrior Met Coal (HCC) and Peabody Energy (BTU). Meanwhile, the coal energy industry group has also ranked No. 1 out of IBD’s 197 groups for several weeks in a row.
Arch Resources cleared a short consolidation buy point at 175.34 on Tuesday as well.
Additionally, Amphastar Pharmaceuticals also cleared a buy point as shares rose in very strong volume and the stock’s RS line notched a new high alongside the breakout. Shares of Amphastar moved above a 40.08 entry from a cup-with-handle base. The stock remains near the upper edge of the 5% buy zone, which tops out at 42.08. Amphastar was added to IBD’s Leaderboard on Tuesday as a quarter-size position.
Adobe Signs Dow Jones Leader Home Depot As Customer
Adobe (ADBE) rose over 1% on Tuesday after the firm announced that home improvement retailer and Dow Jones leader Home Depot (HD) signed on to use its new personalized marketing tool. Home Depot is looking to bridge its online and brick-and-mortar shopping experiences using Adobe software.
Adobe stock rose in very light volume as shares continue to hold above their 21-day and 50-day lines of support. Shares of the software company have slumped significantly since the start of the year along with the market, and had remained below the 50-day line since undercutting this level in December of last year. But the stock may be turning around as shares just reclaimed this key area of support last week.
Outside Dow Jones: Stocks Nearing Buy Points
A large handful of stocks in the MarketSmith Growth 250 index broke out in today’s market, including several oil and gas names. Vermillion Energy (VET) broke out past its proper buy point of 24.03, surging 6%. Other oil and gas breakouts included Enbridge (ENB), which broke out from a 47.52 flat-base entry. Volume remained light on the breakout, however, which makes the move less compelling.
Other big gainers that traded just below their buy points included Halliburton (HAL), a major field services oil and gas firm that came within pennies of breaking out above a 42.70 cup-base entry. The stock’s RS line notched a new high, a bullish sign.
Also, shares of integrated oil and gas firm BP (BP) nearly broke out above a 34.26 cup-based buy point in afternoon trading. BP’s RS line also hit a new high, as it traded in average volume.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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