The Dow Jones Industrial Average slipped as the Nasdaq tried to fight back. Walt Disney (DIS) was among the top blue chips. Alibaba (BABA) was among beaten down China stocks popping higher Thursday. Netflix (NFLX) and Tesla (TSLA) lagged.
Breakouts were hard to come by amid the uncertain action. Still, staffing agency stock Resources Connection (RGP) made a strong move past a buy point on earnings.
Yields continued to rise following Wednesday’s release of the hawkish Fed minutes. The Benchmark 10-year U.S. Treasury note was up about 3 basis points to 1.73%.
Nasdaq Fights As Small Caps Lead
The Nasdaq was the leading major index as it tried to make a stand after Wednesday’s sharp drop. It rose 0.5%. Peloton Interactive (PTON) was the top performer outside of China stocks. It jumped nearly 7%. Netflix (NFLX) was the worst laggard, falling over 2%.
The S&P 500 also squeezed out a gain, inching up 0.3%. Food processor Lamb Weston (LW) was shining brightest, rising over 9%. It jumped on strong Q2 earnings and upbeat guidance.
U.S. Stock Market Today Overview
|Last Update: 3:12 PM ET 1/6/2022|
The S&P 500 sectors were mixed. Energy and financials performed best. Utilities and materials were the worst laggards.
Small caps were leading the major indexes. The Russell 2000 was up 1.1%.
Growth stocks were also fighting back, with the Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, up 1.1%.
Dow Jones Slips As Disney Stock Gains
The Dow Jones Industrial Average gave up more than 60 points as it fell about 0.2%.
Disney stock, which has been a laggard, was among the index leaders. It gained almost 1.5%.
Insurance play Travelers (TRV) was the top stock on the Dow Jones today though, rising 1.6%.
UnitedHealth (UNH) was the worst laggard within the Dow industrials by far, falling nearly 4%.
Alibaba Leads These China Stocks Higher
A host of China stocks were moving higher Thursday despite the overall uncertain action.
Alibaba, often called the Amazon (AMZN) of China, had a solid gain of more than 4%. The stock remains rooted below its 50-day line and 200-day moving average, however.
Meanwhile, e-commerce play Pinduoduo (PDD) was the top stock on the Nasdaq as it popped around 9%. Baidu (BIDU) also fared well, rising more than 5%.
Tesla Stock Reverses As EV Stocks Struggle
EV leader Tesla continued to struggle, dropping about 2%. It has now given up its gains from early this week, and more, after clearing a trendline entry.
Shares traded as high as 1,243.49 on Nov. 4. The stock is nearly 13% below this level. It remains up more than 40% over the past 12 months however.
TSLA stock is a member of the prestigious IBD Leaderboard list of leading growth stocks.
Other EV stocks were also struggling. Rivian (RIVN) dipped 4% while Fisker (FSR) fell around 2%
Lucid Motors stood out by rising more than 4%. It is down more than 6% so far in 2022 however.
Ford (F) was up 3.4% while General Motors (GM) was up 0.6%.
This Stock Passes Buy Point
Staffing stock Resources Connection managed to pop above a proper buy point after posting earnings. It is off highs for the day, but remains clear of a 19.54 entry.
Its relative strength line spiked and the move was made in extremely high volume. These are both bullish traits.
But investors should be cautious about opening any new positions in the current market environment amid a change in the current outlook for stocks Wednesday.
Resources stock is worth watching as both earnings and market performance are strong. RGP stock was boosted after it beat estimates on the top and bottom line.
Gross margins were higher and the firm declared a cash dividend of 14 cents per share
“Clients are also pursuing transformation initiatives at accelerated levels and, therefore, need project resources for execution,” CEO Kate Duchene said in a news release. “RGP is their trusted provider of agile talent to accomplish finance, technology, compliance and digital transformation work.”
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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