The stock market added losses Friday as the Dow Jones Industrial Average tumbled 1.1% and the S&P 500 made new lows for April.
Two Dow components fell on earnings while Caterpillar (CAT) gapped down to a 3% loss.
Verizon (VZ) fell nearly 5% after the company’s updated 2022 profit outlook came in at the lower end of previous guidance. Verizon’s first-quarter adjusted earnings edged above estimates while revenue met views. The stock broke out of a cup-with-handle base Thursday, but dipped below the 54.80 buy point in Friday morning trading.
American Express (AXP) fell 0.5% and continues to form a cup-with-handle base despite slipping below the 50-day moving average. The credit card company beat first-quarter earnings expectations and reaffirmed its 2022 guidance early today.
The S&P 500 lost 0.8% and undercut Monday’s low of 4370. The Nasdaq composite fell 0.1% after trimming earlier losses.
U.S. Stock Market Today Overview
|Last Update: 10:06 AM ET 4/22/2022|
Small caps weren’t spared as the Russell 2000 lost 0.5%.
Volume fell on the NYSE and Nasdaq compared with the same time on Thursday.
Bearish Week For Stock Market
The week is ending with bearish action in the stock market indexes following bearish price reversals Thursday that came with wider price ranges than in previous days.
The Nasdaq met resistance at the 50-day moving average Thursday, while the S&P saw sellers arrive after trying to reclaim the 200-day line. IBD’s market outlook remains “uptrend under pressure,” which calls for cautious trading and raising some cash.
Innovator IBD 50 ETF (FFTY) fell 0.2%.
IBD 50 stock Cleveland-Cliffs (CLF) jumped nearly 10% in heavy trading, regaining the 21-day exponential moving average. The steelmaker beat Q1 estimates and boosted its average selling price forecast by $220 to $1,445 per net ton.
In other earnings news, HCA Healthcare (HCA) plunged nearly 15% in heavy volume after the hospital operator lowered its full-year revenue and earnings forecasts, citing higher labor costs. The stock broke out of a flat base Wednesday but sank below the 272.36 buy point Thursday. This morning, it traded 12% below the entry, causing a sell signal.
The stock market had little reaction to the latest S&P Global purchasing managers index. The flash U.S. composite output index fell to a three-month low of 55.1. The U.S. Services Business Activity Index fell to a three-month low of 54.7. Both were below economists’ estimates.
The flash manufacturing index rose to a nine-month high of 57.4 from 56.1 in March. And the manufacturing PMI index hit a seven-month high at 59.7, above estimates.
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The post Dow Leads Stock Market Lower On Earnings; S&P 500 Loses Key Level appeared first on Investor’s Business Daily.