The Dow Jones Industrial Average drifted higher in today’s stock market but remains off its morning highs. The Nasdaq composite and S&P 500 showed similar action. Meanwhile, economic data showed inflation rose rapidly in December.
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Dow Jones In The Stock Market Today
At around 1:30 p.m. ET, the Dow Jones industrials were trading up 0.1% after paring even larger earlier gains to roughly break-even. The Nasdaq composite was up around 0.4%, leading the upside. The S&P 500 advanced 0.3%, while the Russell 2000 small-cap index fell 0.3%. Volume was running lower on the Nasdaq and on the NYSE vs. the same time on Tuesday.
The U.S. consumer price index rose 7% in December on a year-over-year basis, the highest rate since 1982. The core price index, which excludes food and energy costs, jumped 5.5% in December from a year earlier. That was the fastest pace since 1991.
Consumer prices climbed a seasonally adjusted 0.5% in December from November, as the pace slowed from October and November, according to the Labor Department.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36293.39 | +41.37 | +0.11 |
| S&P 500 | (0S&P5) | 4726.02 | +12.95 | +0.27 |
| Nasdaq | (0NDQC ) | 15212.67 | +59.22 | +0.39 |
| Russell 2000 | (IWM) | 217.00 | -0.61 | -0.28 |
| IBD 50 | (FFTY) | 42.68 | +0.42 | +0.99 |
| Last Update: 1:36 PM ET 1/12/2022 | ||||
Meanwhile, the 10-year Treasury bond yield slid to 1.71% on Wednesday, after a gain of well over 20 basis points last week. Financial stocks were among sectors underperforming as the Financial Select Sector SPDR (XLF) traded near break-even.
Energy stocks, another outperformer in recent sessions, also underperformed with a very small loss in the Energy Select Sector SPDR ETF (XLE). Shares of the energy ETF broke out last week above a 59.51 flat-base entry. The ETF is now extended past the upper edge of the buy zone which topped out at 62.48.
Stocks Making Notable Moves
The Innovator IBD 50 ETF (FFTY) fell more than 1.6% Monday, but rose Tuesday and early Wednesday. It was up about 1% to 42.63 in afternoon trading. Growth stocks have suffered as bond yields continue to increase. Rising yields tend to make riskier, high-growth opportunities less appealing for investors.
Two financial stocks making notable moves on Wednesday included Houlihan Lokey (HLI) and Jefferies Financial (JEF).
Houlihan Lokey broke out above a 119.99 buy point of a cup without handle, according to MarketSmith. Early volume was heavy, and the relative strength line is near new highs. These are both bullish indicators. But the stock pulled back and traded back below the breakout point in afternoon trading. Shares remain up 0.5%.
Jefferies Financial, on the other hand, sank nearly 10% in heavy volume after the investment bank’s earnings and revenue missed estimates. Sales dropped 3% for the November-ended quarter, on a year-over-year basis. But the firm raised its dividend 20% to 30 cents a share.
Both stocks are part of the investment bankers and brokers industry group, which ranks No. 31 of the 197 groups IBD measures.
Another financial stock worth noting in today’s market outside the Dow Jones is Western Alliance Bancorp (WAL), which is trading close to a breakout above 124.98.
Over in the MarketSmith Growth 250 index, Equinor (EQNR) and Cirrus Logic (CRUS) also traded near or above key buy points.
Equinor, a Norwegian oil and gas exploration and production company, traded close to a 28.40 buy point after gaining over 1% in today’s market. The integrated oil and gas group, of which Equinor is a part, ranks No. 23 of the 197 groups IBD measures.
Cirrus Logic briefly traded above a 95.10 buy point of a cup-with-handle base. But shares pulled back in afternoon trading.
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 Hold Modest Gains But Off Morning Highs; Economic Data Shows Inflation Hit 40-Year High appeared first on Investor’s Business Daily.
