The Dow Jones Industrial Average drove higher but the Nasdaq fell as tech stocks tumbled. General Motors (GM) surged even as Toyota (TM) became America’s top-selling automaker. Ford Motor (F) also jumped while Tesla (TSLA) tested a buy point before reversing. Advanced Micro Devices (AMD) and Nvidia (NVDA) crumbled.
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A number of stocks tested entries amid the mixed action. Fabrinet (FN), Lamar Advertising Company (LAMR) and Kimco Realty (KIM) all moved above buy points.
Nasdaq Falls As Tech Stocks Suffer
The Nasdaq was the worst performing major index, falling 1.3%. It is still roughly flat for the week. Truck maker Paccar (PCAR) fared best with a gain of nearly 5%. Pinduoduo (PDD) plummeted over 11%.
The S&P 500 closed practically flat, giving up 0.1%. Outside of auto stocks, Occidental Petroleum (OXY) fared best with a gain of over 7%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36799.45 | +214.39 | +0.59 |
| S&P 500 | (0S&P5) | 4793.53 | -3.03 | -0.06 |
| Nasdaq | (0NDQC ) | 15622.72 | -210.08 | -1.33 |
| Russell 2000 | (IWM) | 225.01 | -0.31 | -0.14 |
| IBD 50 | (FFTY) | 45.04 | -0.50 | -1.10 |
| Last Update: 4:12 PM ET 1/4/2022 | ||||
The S&P 500 sectors were mixed. Energy and financials performed best. Health and technology were the worst laggards.
Small caps closed the day lower, with the Russell 2000 falling 0.1%.
Growth stocks closed off lows but still lagged Tuesday. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 1.1%.
Dow Jones Gains As Microsoft Stock Stumbles
The Dow Jones Industrial Average was the top major index as cyclicals fared well. It rose more than 200 points as it gained 0.6%.
Caterpillar (CAT) fared best, rising more than 5%. It managed to retake its 200-day moving average in solid volume.
JPMorgan Chase (JPM) followed closely behind with a gain of nearly 4%.
Microsoft (MSFT) fared worst on the Dow Jones today, dropping nearly 2%.
GM Stock Tops Buy Point Despite Losing Crown
General Motors stock managed to clear an entry point despite the fact Toyota overtook it to become the top automaker in the U.S. for 2021
GM sold 2.2 million vehicles, down 13% due to the semiconductor shortage. Toyota sales popped 10% to 2.3 million vehicles.
GM stock roared past a 63.39 buy point in its base, which shows the elements of a double bottom. It closed the day up nearly 12%. Shares surged away from the key 50-day line.
Wall Street is getting behind the stock, with analysts at Goldman Sachs named GM an EV stock to buy into 2022.
Ford stock performed even better, closing the day up nearly 12%. The RS line is looking mighty in this case. While GM has performed well over the past year, gaining over 60%, Ford stock has done even better. It is up about 185% over the past 12 months.
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Tesla Stock Tests Entry, Reverses Hard
EV leader Tesla meanwhile briefly moved above a double-bottom base buy point of 1,202.05.
But it reversed hard as the session wore on, giving up around 4%.
TSLA stock remains clear of a trendline entry and a weekly chart handle buy point of 1,119.10.
Shares traded as high as 1,243.49 on Nov. 4. The stock is more than 7% below this level. Over the past 12 months TSLA stock is up nearly 60%.
Tesla stock roared in solid volume Monday after the company reported it delivered 308,600 vehicles in Q4. This was well above the FactSet consensus of 276,900.
TSLA stock is a member of the prestigious IBD Leaderboard list of leading growth stocks.
Bears Bite Chip Stocks
Chip leaders Advanced Micro Devices and Nvidia were given a pasting as the bears ate tech stocks for breakfast.
AMD was punished despite showing off new products at the CES 2022 show in Las Vegas.
The chip giant flaunted new CPUs and graphics processors for notebook PCs.
A highlight was the debut of the Santa Clara, Calif.-based company’s Ryzen 6000 series mobile processors and new Radeon graphics processors.
AMD moved somewhat off session lows, but still ended the day down nearly 4%. It remains up nearly 60% over the past 12 months.
Nvidia stock also moved off lows but closed down nearly 3%. NVDA stock has performed even better over the last year, rising nearly 120%.
These Stocks Pass Buy Points
Fabrinet closed in a buy zone after earlier clearing a flat-base entry of 122.63, MarketSmith analysis shows.
This is a second-stage pattern, which is a positive. In addition, the stock offers solid all-around performance. Institutional money has also been getting behind the stock of late.
Lamar Advertising Company closed just below its buy zone after earlier rising past a cup-without-handle entry of 124.02. The relative strength line is beginning to pick up steam. Big money has also been snapping up shares. Strong earnings growth is seen ahead in 2022.
Shopping center real estate investment trust Kimco Realty is currently actionable after breaking out of a flat base. The ideal buy point here is 25.05.
The stock saw its RS line hit a new high, which gives the breakout credibility. Volume was below average volume though.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Rallies; GM Stock Surges As Toyota Snatches Its Crown; Tesla Tests Buy Point appeared first on Investor’s Business Daily.
