Financial stocks rallied sharply for the second straight session Tuesday. JPMorgan (JPM), American Express (AXP) and Goldman Sachs (GS) were top gainers in the Dow Jones Industrial Average, while regional banks like Regions Financial (RF), Fifth Third Bancorp (FITB) and PNC Bank (PNC) outperformed in the S&P 500.
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Rising bond yields were a tailwind for financials Monday, and it was more of the same Tuesday. After jumping 11 basis points Monday to 1.62%, the 10-year Treasury yield added another 6 basis points to 1.68%.
The Financial Select Sector SPDR ETF (XLF) was up nearly 3%, but the energy sector was the S&P’s leading sector, with the Energy Select Sector SPDR ETF (XLE) up 3.5%.
Dow Jones Today
The Dow Jones industrials gapped up to an all-time high, rising 0.6%. After a breakout over a trendline Monday, JPM stock gapped above its 50-day moving average. Same with GS stock.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36792.01 | +206.95 | +0.57 |
| S&P 500 | (0S&P5) | 4787.11 | -9.45 | -0.20 |
| Nasdaq | (0NDQC ) | 15568.47 | -264.33 | -1.67 |
| Russell 2000 | (IWM) | 225.08 | -0.24 | -0.11 |
| IBD 50 | (FFTY) | 44.74 | -0.80 | -1.76 |
| Last Update: 1:18 PM ET 1/4/2022 | ||||
Caterpillar (CAT) also gained nicely in the Dow Jones, up 4.5%. The maker of construction and mining equipment is trying to get above its 200-day moving average, which was a resistance level in early November.
Technology stocks in the Dow Jones were under the most pressure. Salesforce.com (CRM) slumped 4%, while Leaderboard stock Microsoft (MSFT) gave back 2%. Apple (AAPL) eased just over 1% after Monday’s all-time closing high.
Nasdaq Tests Key Level
Selling was most pronounced in the Nasdaq indexes. The Nasdaq 100 slumped 1.9%, and the Nasdaq composite fell 1.7%. The composite is just below the 50-day moving average, while the Invesco QQQ Trust (QQQ) is holding just above its 50-day line.
Marriott International (MAR) outperformed in the Nasdaq 100, up 2.9%. The hotel operator moved bullishly above last week’s high and is near the top of a nine-week consolidation pattern.
Paccar (PCAR) also moved nicely in the Nasdaq 100, up nearly 4%. It’s still in buy range from a 90.23 buy point in a base that carries the elements of a double bottom.
But there was plenty of carnage in the Nasdaq 100 as software stocks like Atlassian (TEAM), CrowdStrike (CRWD) and Workday (WDAY) showed losses of at least 5%. Nvidia (NVDA) and Advanced Micro Devices (AMD) shed 5%.
Financials Lead S&P 500
The S&P 500 faded off highs and turned slightly negative despite some big movers in the index. Regions Financial gapped above its 50-day moving average, rising more than 5%. PNC Financial gapped up to the top of a flat base with a 217.70 buy point.
KeyCorp (KEY) added 5%. It’s in the early stages of breaking out of a flat base with a 24.67 buy point.
Raymond James Financial (RJF) also showed a healthy gain in the S&P 500. It soared out of a flat base with a 103.56 buy point and is near the top of the 5% buy zone.
Oil and gas stocks were also among the best gainers in the S&P 500. Occidental Petroleum (OXY) surged above its 50-day line, rising nearly 8%. Halliburton (HAL) jumped 6%, helped by an upgrade from Morgan Stanley to overweight from equal-weight.
Please follow Ken Shreve on Twitter at @IBD_KShreve for stock market updates and more.
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