The tech-heavy Nasdaq composite traded lower alongside the Dow Jones and S&P 500 for a third-straight day. The indexes traded near lows on Friday as investors digested hawkish comments from Fed Chairman Jerome Powell on Thursday.
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Nasdaq Falls, S&P 500 Leads Downside
In early-afternoon trading, the Dow Jones industrials traded down 1.8%, near session lows. The index fell below support at its 200-day and 21-day lines and is testing support at the 50-day moving average. The Nasdaq has struggled in recent weeks and has remained below the other three key moving averages. The tech-heavy index held losses of 1.7%.
Elsewhere, the S&P 500 fell 1.8%, while the small-cap Russell 2000 was down 1.9%, leading the downside. Volume was lower on the Nasdaq and higher on the NYSE vs. the same time on Thursday.
The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, traded down 2.8% and hit a five-week low as growth stocks continue to get hammered in this current market.
After hawkish comments from Fed Chair Jerome Powell on Thursday at a panel presented by the International Monetary Fund, the indexes declined and continued with negative action in today’s market. The Fed Chair noted that a “50 basis points (rate increase) will be on the table for the May meeting.”
The yield on the benchmark 10-year Treasury note slipped slightly lower to 2.9% on Friday after weeks of trading sharply higher. Meanwhile, West Texas Intermediate crude fell 1.6% after a drop earlier this week. The commodity is trading around $102 a barrel.
Dow Jones Earnings Movers
Stocks moving on earnings Friday included Verizon (VZ), which sank 6% after the company’s 2022 profit outlook came in at the lower end of previous guidance. However, on the positive side, Verizon’s Q1 adjusted EPS slightly outpaced views while revenue was on par with estimates.
Nevertheless, the Dow Jones stock sold off on Friday and gapped down. Shares officially triggered the 7% sell rule after breaking out past a 54.80 cup-with-handle buy point on Thursday.
Among other Dow Jones stocks, American Express (AXP) released Q1 2022 earnings before the market opened on Friday. Shares fell 1.3% after the credit card company beat first-quarter expectations and reaffirmed its 2022 guidance. AXP stock is 6% away from a cup-with-handle entry at 194.45. The stock slipped slightly below the 50-day moving average on Friday.
Caterpillar (CAT) underperformed in the Dow, falling nearly 3% in early-afternoon trading. The company is expected to report earnings on Apr. 28, before the market opens. Shares are trading 10% below a 146.79 buy point.
Follow Rachel Fox on Twitter at @IBD_RFox for more Nasdaq and stock market commentary.
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