The stock market was slightly lower in the first hour of trading Friday in what is shaping up as a quiet final session of a successful 2021 for stock investors.
X
The Nasdaq composite and S&P 500 fell less than 0.1%. Both indexes have moved little since Monday’s 1.4% jumps.
The Dow Jones Industrial Average was off 0.1% also. There was no movement of any consequence among the 30 Dow stocks. 3M (MMM) met resistance at the 50-day moving average this week, but the stock already is a laggard.
Small caps led as the Russell 2000 climbed 0.4%.
Volume was lower on the NYSE and Nasdaq compared with the same time on Thursday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36381.08 | -17.00 | -0.05 |
| S&P 500 | (0S&P5) | 4777.07 | -1.66 | -0.03 |
| Nasdaq | (0NDQC ) | 15733.11 | -8.45 | -0.05 |
| Russell 2000 | (IWM) | 223.84 | +0.91 | +0.41 |
| IBD 50 | (FFTY) | 45.85 | +0.13 | +0.28 |
| Last Update: 10:14 AM ET 12/31/2021 | ||||
Friday’s quiet trading comes after a weakening trend developed in the major stock indexes. After a sharp four-day rally, indexes moderated and made negative price reversals on Thursday.
Major stocks that shouldered much of 2021’s gains — such as Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Nvidia (NVDA) and Tesla (TSLA) — moved less than 1% in early trading.
Stock Market Ends A Winning 2021
The stock market Friday caps a winning 2021 in which the S&P 500 and Nasdaq gained more than 20%. The Dow is on pace to end the year up nearly 19%. While that qualifies as a solid year, it doesn’t make the Dow’s 10 best years.
It was an especially rewarding year for the S&P 500, which surpassed its 2020 gain of 16.3%. Energy, real estate and financial sector stocks — up 33% to 46% this year — helped the S&P beat the other major indexes. The S&P’s annual advance rivals its 2019 surge of 28.9%.
The Nasdaq was never expected to match its 2020 surge of 43.6% and will end the year with about half as much in gains, about 22%. The Technology Select Sector SPDR ETF (XLK) has climbed more than 34% this year, the third best S&P sector. The ETF eased from record highs but remains up for the week.
A continued economic recovery should help stocks extend gains in 2022, but investors face significant risks in the coming year with inflation, rising interest rates and a moderation in earnings growth.
Stock Market Breakout For Olaplex
Olaplex Holdings (OLPX) climbed past the 30.23 buy point of a cup without handle base in heavy trading. The stock dipped below the entry but held most of a 5% surge. The developer of a pioneering hair treatment was Thursday’s IBD Stock of the Day. An alternative entry can be spotted around 28.
Innovator IBD 50 ETF (FFTY) outperformed with a 0.3% gain.
Endava (DAVA) is still nearing a new high and a buy point at 172.51 in a cup base. Seagate Technology (STX) also is close to a buy point, this one at 117.03.
Tesla is forming a double bottom base, though it’s a lopsided pattern. Alphabet remains in a flat base with a 3,019.43 buy point.
Applied Materials (AMAT) hasn’t followed through from its breakout from a flat base, but is still near the 159.10 buy point.
Avantor (AVTR) is forming a cup base with some choppy price action. Harmony Biosciences (HRMY) is still trying to break out above a 44.49 entry.
Taiwan chip company Himax Technologies (HIMX) rose 7.5% Friday and is quickly forming the right side of a base. But the pattern is deeper than normal.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
YOU MIGHT ALSO LIKE:
2022 Stock Market Forecast Brings Unfamiliar Risks For Investors
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
The post Stock Market Falls Modestly In Final Session Of 2021; IBD Stock Of The Day Clears Buy Point appeared first on Investor’s Business Daily.
