The Dow Jones Industrial Average rose 87 points after trading lower for much of today’s market action. The major indexes reversed higher after Wednesday’s sell-off.
IBD downgraded its market outlook on Wednesday as indexes crossed below key moving averages, signaling potential weakness. On Thursday, the major indexes regained some ground and key levels.
Dow Jones Today
At the close, the Dow Jones industrials were up around 0.3% and it reclaimed its 21-day line.
U.S. Stock Market Today Overview
|Last Update: 4:22 PM ET 4/7/2022|
The index found support at the 50-day moving average for a second straight day. But it remains below its 200-day line.
Meanwhile, tech stocks lagged as the Nasdaq was up only 0.1% at the close. The index closed above its 50-day line, where support could be appearing.
The S&P 500 rose 0.4% and led the upside while the Russell 2000 fell 0.4%. Volume fell on the Nasdaq and on the NYSE from Wednesday’s heavy-volume selling, early data showed.
The yield on the benchmark 10-year Treasury note continued slightly higher to 2.65%. Meanwhile, West Texas Intermediate crude traded up slightly and remained around $96 a barrel.
The S&P 500 sectors traded mixed. The health care sector led the upside with a gain of nearly 2%. Energy stocks also rallied in Thursday’s market. On the downside, communication services and real estate led with losses of almost 1% each.
Among Dow Jones leaders, Merck (MRK) and Walgreens Boots Alliance (WBA) rose roughly 2% each. Visa (V) was the worst performer, falling 1.3%.
Tech giants Microsoft (MSFT) and Apple (AAPL) traded slightly higher, up 0.6% and 0.2%, respectively. While Microsoft is gaining support at its 50-day line, Apple stock has held up slightly better and is still above its 21-day exponential moving average. Shares remain just 6% off highs, while the 176.65 buy point is still in play.
Growth Stocks To Watch
The Innovator IBD 50 ETF (FFTY) rose 0.6% and beat the major indexes. The ETF broke below support at the 50-day line and 21-day line on Wednesday after finally reclaiming these areas in mid-March.
Inside the MarketSmith Growth 250, O’Reilly Automotive (ORLY) moved above a buy point.
Shares rose over 3.5% as O’Reilly broke out from a cup base with 710.96 buy point, best seen on the weekly chart on MarketSmith. The RS line also notched a new high, a bullish sign. Volume was 21% above average. The Missouri-based retailer operates over 5,500 auto parts stores across the U.S. The stock has been holding above the 50-day moving average.
The firm will report Q1 earnings on April 27, which could be a potential catalyst for a price move. Analysts expect the company to earn $7.45 per share, which is nearly 6% higher than the $7.06 per share it reported in the same quarter last year.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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