The Dow Jones Industrial Average rose over 140 points in today’s stock market on the first trading day of 2022. Meanwhile, the S&P 500 rose as well while the Nasdaq led on the upside with gains of nearly 1%.
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Stock Market Today
An hour before the close, the Dow Jones industrials were trading up close to 0.6%. The Nasdaq composite held a gain of over 1%, leading the upside. The S&P 500 rose 0.5%, in line with the Dow, while the Russell 2000 small-cap index gained 0.9%. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Friday, a bullish sign for CAN SLIM investors.
As for growth stocks, the Innovator IBD 50 ETF underperformed the major indexes Monday, down over 1% in afternoon trading. The index undercut its 21-day line after reclaiming this level last week. Shares continue to find resistance at the 200-day line.
The stock market ended 2021 with the three major indexes all showing strong gains. The S&P 500 outperformed with a 27% increase. Much of this year’s market will depend on how investors handle inflation, rising interest rates and the often unpredictable risks related to Covid-19.
Among the S&P sectors, energy and consumer discretionary stocks led the upside with gains of over 2% each. On the downside, the health care and real estate sectors fell the most. Industry groups leading the upside among IBD’s 197 groups included auto manufacturers and several oil and gas related groups. Trucking stocks led on the downside with the group falling over 3%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36541.06 | +202.76 | +0.56 |
| S&P 500 | (0S&P5) | 4791.77 | +25.59 | +0.54 |
| Nasdaq | (0NDQC ) | 15811.34 | +166.37 | +1.06 |
| Russell 2000 | (IWM) | 224.65 | +2.20 | +0.99 |
| IBD 50 | (FFTY) | 45.42 | -0.42 | -0.92 |
| Last Update: 3:04 PM ET 1/3/2022 | ||||
The 10-year Treasury bond yield jumped 11 basis points to 1.62% on Monday, which boosted several top financial stocks like Goldman Sachs (GS), JPMorgan (JPM) and American Express (AXP).
Elsewhere, money-center stock Wells Fargo (WFC) jumped over 5% as shares gapped above its 50-day moving average and broke out over a trendline. The stock is now actionable. Shares are also approaching a new 52.66 flat-base entry, according to MarketSmith chart analysis.
Dow Jones Today
In the Dow Jones today, stocks making notable moved included Apple (AAPL), which closed in on an all-time high and a $3 trillion market cap. The stock held a 2.6% gain in afternoon trading and inched closer to the 20% profit zone from a breakout.
Elsewhere, Chevron (CVX) outperformed as oil prices rose. Benchmark U.S. crude oil futures were up just under 1% to $75.88 a barrel, off their intraday highs. Chevron may attempt a possible breakout attempt over the 120 level.
Stocks leading the downside included Nike (NKE) and Home Depot (HD) which fell over 1%. Shares of Nike fell 1.6% despite positive comments from Guggenheim, which named Nike its top stock for 2022. Nike stock made a decisive break below the 50-day and 21-day lines on Monday.
IBD Leaderboard and the Long-Term Leaders stock Microsoft (MSFT) struggled as shares fell around 0.7%. Microsoft was the No. 2 top-performing Dow stock with a 52% gain. The software giant is working on a flat base with a 349.77 buy point. It’s also close to an early entry at 343.89.
Stocks Making Notable Moves
On Monday, a few stocks in the MarketSmith Growth 250 index scored breakouts. Ulta Beauty (ULTA) briefly traded above a 417.95 flat-base entry, according to MarketSmith chart analysis. The stock faded from the buy point in afternoon trading but remained up 0.2%.
Steel and metals product manufacturer Commercial Metals (CMC) broke out above a 36.96 cup-base buy point but also faded in afternoon trading. The stock maintains an impressive 92 RS Rating an a 96 Composite Rating.
Finally, air freight transportation stock Atlas Air Worldwide (AAWW) held above the 95.10 buy point of a flat base on Monday. The stock has been holding above its 10-week line since last August. Atlas Air also features a strong RS line that’s nearing its highs.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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