The stock market shot up Tuesday at midday, with the Nasdaq composite leading. Financial stocks led the way, as bond yields kept rising.
The Nasdaq jumped 1.9% while the S&P 500 climbed 1% and the Dow Jones Industrial Average rose 0.6%.
Dow component Nike (NKE) jumped 4.5% after the athletic apparel company’s February-ended quarter sales and earnings topped expectations. Direct to consumer sales jumped 15% to $4.6 billion, a business that Nike is trying to boost.
The small-cap Russell 2000 gained 0.7%. The index is on pace for its fifth gain in the past six sessions.
U.S. Stock Market Today Overview
|Last Update: 11:54 AM ET 3/22/2022|
Volume fell on the NYSE and Nasdaq compared with the same time on Monday.
Oil Prices Fall As Bond Yields Surge
The price of U.S. crude oil fell 1% to $111 a barrel, slowing from a three-day rebound. Energy was the weakest S&P sector, down 1.6%. The war between Russia and Ukraine dragged on, as Russia’s advance seemed to be turning into a protracted war rather than a quick invasion.
Financial Select Sector SPDR (XLF) climbed 1.7% to lead the S&P sector ETFs.
The 10-year Treasury note’s yield rose 5 basis points to 2.36%, around the highest since May 2019. Investors had been worried about the possibility of the yield curve inverting, where the 10-year Treasury falls below the 2-year Treasury. The fact that the 10-year Treasury rose was seen as a good sign, especially for financial stocks.
Wells Fargo (WFC) jumped more than 5%, climbing back into its buy range from a flat base entry of 52.66. Bank of America (BAC) climbed 3.7%.
Apple (AAPL), a big piece of the three major indexes, climbed 2% to above the 50-day moving average for the first time since Feb. 10.
Tesla (TSLA) climbed 2.7%, adding some space above its 50-day moving average. After many delays, the company opens its factory near Berlin today.
Farm equipment maker Deere (DE) added another 1.7% to its four-day winning streak, as its share price passed 430. The stock is extended past its buy range off a cup-with-handle pattern.
The Innovator IBD 50 ETF (FFTY) rose 0.5%.
Howmet, AOSL, Darling Lead Breakouts
Alpha & Omega Semiconductor (AOSL) climbed 10% and broke out above a 59.48 buy point from a cup-with-handle base in heavy trading. The handle in the base is 25% deep, which is much more than normal.
Darling Ingredients (DAR) is just past the 80.31 buy point of a cup-with-handle base. Chicken sandwich chain Chick-fil-A chose Darling Ingredients to convert its used cooking oil into renewable transportation fuel.
Zim Integrated Shipping (ZIM) jumped 9% to a new high. Earlier this month, the shipping company declared a dividend of $17 per share payable April 4 to shareholders as of Wednesday.
Outside the IBD 50, Howmet Aerospace (HWM), a metals maker for the aerospace and transportation industries, regained its buy point of 36.13 off a consolidation. The stock had fallen as much as 10.5% below the entry but rebounded. Its share price jumped 2.3% Tuesday at midday.
Jackson Financial (JXN) broke out of a double-bottom base with a 44.76 buy point in big volume. American International Group (AIG) edged above the 63.64 buy point of a flat base but eased below the entry in weak volume.
Follow Michael Molinski on Twitter @IMmolinski
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