The Dow Jones Industrial Average continued trading near session lows on Monday as Treasury yields climbed. Tech stocks led the downside while oil prices also dropped.
Dow Jones Today
IBD downgraded its current market outlook last week as indexes crossed below key moving averages, signaling potential weakness. On Monday, the major indexes continued lower below these new areas of resistance.
At around 3 p.m. ET, the Dow Jones industrials were down around 0.7%. The index remains above support at its 50-day line. Tech stocks continued to underperform this week as the Nasdaq was down 1.6% and gapped down below the 21-day and 50-day moving averages. The tech-heavy index found support near these areas last week. The S&P 500 fell 1.6% Monday afternoon and the Russell 2000 fell 0.3%. Volume rose on the Nasdaq and on the NYSE from Friday which, along with the lower indexes, is a bearish signal indicating heavier institutional selling.
U.S. Stock Market Today Overview
|Last Update: 3:18 PM ET 4/11/2022|
The yield on the benchmark 10-year Treasury note continued to climb, reaching 2.78% on Monday. Meanwhile, West Texas Intermediate crude traded down 4.1%, falling below $94 a barrel. The S&P 500 sectors traded mostly lower. Energy stocks led the downside with losses of 2.4% while technology stocks traded down 1.8%. On the upside, industrials were the only sector trading higher, up 0.2%.
Among Dow Jones leaders, tech giant Microsoft (MSFT) led the downside with a loss of 3.3%. Meanwhile Chevron (CVX) also was a leader on the downside with a 2% loss as energy stocks came under pressure.
On the upside, Boeing (BA) and Verizon Communications (VZ) led the upside with gains of roughly 1% each. Shares of Verizon have formed a flat base with 55.49 buy point. The move was a positive development on Monday as it climbed above the 200-day line and is also sitting above its 50-day and 21-day lines. Shares remain 2% away from the buy point.
This Metals Miner Stock Breaks Out
The Innovator IBD 50 ETF (FFTY) fell 2%. Earlier last week, the ETF broke below support at the 50-day line and 21-day line after finally reclaiming these areas in mid-March.
Meanwhile, gold and silver metals miner Franco-Nevada (FNV) broke out from a flat base with a 168.47 buy point. The stock retreated from the breakout but held up near break-even in afternoon trading. The RS line notched new highs alongside the breakout.
Since mid-February, the stock has been holding well above its 21-day line, a sign of strength.
But the company is expected to report earnings on May 4, after the market closes. Earnings could catalyze a move in the stock and investors should beware of this before initiating a position.
Elsewhere, U.K.-based developer of pharmaceutical drugs GlaxoSmithKline (GSK) scored a breakout from a 46.95 cup-base entry. The stock moved below this area following the breakout. But the RS line notched a new high, a bullish sign.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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