The stock market bounced around between positive and negative territory Monday ahead of a key Federal Reserve meeting this week. Honeywell (HON) was a top gainer in the Dow Jones Industrial Average, along with Warren Buffett stock Chevron (CVX).
CVX stock is trying to get back above its 50-day moving average in the Dow Jones today after five straight closes below it. Another Warren Buffett stock, Occidental Petroleum (OXY), added more than 3% as it finds support at the 50-day line.
The Dow Jones industrials backed off highs after rising more than 0.7% intraday. By early afternoon the index was down 0.6%. Besides Honeywell and Chevron, several other Dow Jones stocks were up 1% or more, including Intel (INTC) and Leaderboard stock Microsoft (MSFT).
Outside The Dow Jones
The Nasdaq composite, meanwhile, pared a 1.4% intraday gain to a marginal loss.
U.S. Stock Market Today Overview
|Last Update: 1:12 PM ET 5/2/2022|
Top gainers in the Nasdaq 100 included Moderna (MRNA), Align Technology (ALGN) and DocuSign (DOCU).
Money flowed out of bonds again, sending the 10-year Treasury yield to a fresh 52-week high, up more than 10 basis points to 2.99%.
The Fed is widely expected to hike the federal funds rate to a range of 0.75% to 1% when the policy statement is released Wednesday at 2 p.m. ET.
Several more rate hikes are expected before the end of the year to combat persistent inflation. By the end of this year, fed funds futures traders see the federal funds rate around 3%.
ETFs On The Move
The Communications Services Select Sector SPDR ETF (XLC) led the way, up nearly 1%, helped by strong performance from top-weighted holding Meta Platforms (FB). Activision Blizzard (ATVI), another Warren Buffett favorite and top-10 holding of XLC, added nearly 3%.
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The Energy Select Sector SPDR ETF (XLE) also outperformed, up 0.6%. XLE is battling for support at its 50-day line after a harsh, three-session sell-off April 21-25.
The MarketSmith Growth 250 delivered plenty of movers, with some of the more notable moves to the downside as coal stocks, steel producers, and oil and gas stocks lagged.
In the coal group, sellers hit Peabody Energy (BTU) again on the heels of last week’s earnings report. But Consol Energy (CEIX) is still showing strength in the group. While BTU stock is below its 50-day line, Consol is still testing support at its 21-day exponential moving average.
Callon, Civitas Fall Sharply
Among top-rated oil and gas producers, Callon Petroleum (CPE) and Civitas Resources (CIVI) showed losses of more than 5%.
Specialty chemicals firm Olin (OLN) was one of the top gainers in the MarketSmith Growth 250 after a positive response to earnings Friday when the stock gapped up and rose nearly 7.7%. OLN shares rallied another 1% to 58.21. A 61.01 buy point is still in play.
Steel producers Steel Dynamics (STLD) and Nucor (NUE) lagged badly in the IBD 50 with losses of more than 4% each. Both stocks are making key tests of their 10-week moving average lines.
But sellers hit Vertex Pharmaceuticals (VRTX) ahead of Thursday’s earnings report.
VRTX outperformed Friday after AbbVie (ABBV) threw in the towel on a combination treatment for cystic fibrosis, an area where Vertex dominates. But VRTX slumped 5.5% Monday after the Food & Drug Administration put a clinical hold on an early-stage diabetes treatment.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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The post Dow Jones Slumps 200 Points, But Warren Buffett Stock Chevron Bucks The Trend; 2 Hot Steel Stocks Test Key Level appeared first on Investor’s Business Daily.