Stock Market Closes Higher, But Dow Jones Inches Down; Exxon And Chevron Lead Oil Stocks Lower

The stock market gained Friday but the Dow Jones Industrial Average inched down as investors took a sigh of relief from the week’s losses before the Juneteenth three-day weekend. Oil stocks took a beating.

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The Nasdaq composite led the major indexes, closing 1.4% higher. The S&P 500 gained 0.2%, while the Dow Jones closed 0.1% lower.

Volume was lower on the Nasdaq and higher on the New York Stock Exchange vs. the same time Thursday, early data showed.

On the week, the S&P 500 closed down 5.8%, and the Nasdaq and Dow Jones both closed down 4.8%.

Small caps were also in positive territory, at least for Friday. The Russell 2000 gained nearly 1%.

But growth stocks were given a drubbing. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, was down 1.6%. FFTY has fallen more than 40% year to date.

Meanwhile, the yield on the benchmark 10-year Treasury note fell four basis points to 3.24%.

Nasdaq Leads As Tech, Consumer Discretionary Stocks Gain

The Dow Jones Industrial Average was led by American Express (AXP), which soared 4.8% and was a top blue-chip performer. Chevron (CVX) was among the biggest declining stocks in the oil industry, closing down 4.8% on heavy volume

Exxon Mobil (XOM) closed 5.8% lower in heavy volume and is now back below its buy zone and its 50-day moving average. The relative strength line is still holding up, however, an encouraging sign.

Oil stocks slid this week after President Biden took a swing at Big Oil, criticizing companies for rising the price of gas and for not increasing capital expenditures. “Exxon made more money than God this year,” he told reporters.

Other oil stocks slid even more. Diamondback Energy (FANG), Matador Resources (MTDR) and Earthstone Energy (ESTE), all leaders among oil stocks, plunged more than 8%. These Sector Leaders are good examples of when to pay attention to MarketSmith charts.

FANG has hit the 8% sell rule. MTDR looks to have failed the test of its 50-day moving average, while ESTE is holding above its buy range after losing one-quarter of its value from reaching a high of 22.25 on June 7.

Crude oil prices fell 6% today, to $110 per barrel.

Stock Market Mixed On Company News

Nasdaq’s big mover was biotech company Seagen (SGEN), on rumors of a buyout by Merck (MRK). Shares of Seagen climbed 12.6% on heavy volume, while Merck shares closed down 0.3%.

World Wrestling Entertainment (WWE) slipped 3.6% as CEO Vince McMahon stood aside amid a probe into a hush payment over an alleged affair.

Moderna (MRNA) gained 5.7% and Pfizer (PFE) slid 2% amid an FDA Covid vaccine decision.

The FDA has authorized Moderna and Pfizer’s Covid-19 shots for children as young as 6 months old. The move means almost everyone in the U.S. now qualifies for vaccination. It made the decision after its committee of independent vaccine experts voted unanimously to recommend the shots Wednesday.

The Biden administration expects vaccinations to start as soon as Tuesday. However, that depends on a Centers for Disease Control and Prevention committee drafting guidelines on delivery on Saturday.

Among the S&P 500 sectors, the Energy Select SPDR ETF (XLE) was by far the biggest loser, dropping 5.5%. Consumer discretionary, technology and communication services were among the areas faring best.

Follow Michael Molinski on Twitter @IMmolinski

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