The stock market was mixed in the first hour of trading Tuesday, after the Nasdaq erased a small gain while the other indexes extended gains.
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The S&P 500 and Dow Jones Industrial Average climbed to record highs. The S&P 500 added 0.3% and the Dow 0.8%.
But the Nasdaq composite lagged with a 0.6% decline. The technology sector was one of the morning’s weakest, and software stocks in particular were soft. IShares Expanded Tech-Software ETF (IGV) fell 0.5%, dropping further below its 200-day moving average.
Small caps led stock market indexes again, as the Russell 2000 surged 1.9%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36880.62 | +295.56 | +0.81 |
| S&P 500 | (0S&P5) | 4809.50 | +12.94 | +0.27 |
| Nasdaq | (0NDQC ) | 15738.88 | -93.92 | -0.59 |
| Russell 2000 | (IWM) | 225.51 | +0.19 | +0.08 |
| IBD 50 | (FFTY) | 45.29 | -0.25 | -0.55 |
| Last Update: 10:16 AM ET 1/4/2022 | ||||
Volume rose on the NYSE and Nasdaq compared with the same time on Monday.
Stock Market At New Highs
The S&P energy, financial and transportation sectors rose 1% to 2% to lead the market.
The price of U.S. crude oil rose 0.8% to $76.69 a barrel. Major oil producers agreed to continue raising output, believing the omicron surge won’t hurt global demand as earlier variants of the virus.
Financials rose after the yield on the 10-year Treasury yield rose 5 basis points to 1.67%, the highest since Nov. 24.
The stock market opened 2022 higher Monday. With little distribution in the past few weeks, investors have reason to raise exposure to stocks.
But the performance of leading stocks should cause some pause. The IBD 50 slid 1.7% Monday and closed back below the 50-day moving average. A number of stocks sank below their latest buy points, including CubeSmart (CUBE), Icon (ICLR) and West Pharmaceutical Services (WST).
Tradeweb Falls Below 50-Day Line
Tuesday morning, Tradeweb Markets (TW) fell below the 50-day moving average in heavy trading. The electronic trading platform provider is also quickly erasing gains from its 89.89 buy point.
The Innovator IBD 50 ETF (FFTY) reversed lower in morning trading and was off 0.5%.
Apple (AAPL) briefly topped the $1 trillion market cap for the second time in as many days. Shares backed off from a 183.94 high. The stock reaches the $1 trillion mark with any price above 182.86.
Contract manufacturer Fabrinet (FN) broke out of a base-on-base formation and is in buy range from the 122.63 buy point. Tesla (TSLA) climbed above the 1,202.05 buy point of a double bottom base.
Stock Market Digests Economic Reports
The Institute for Supply Management reported at 10 a.m. ET that its index of manufacturing activity fell to 58.7 in December from 61.1 in November, the Associated Press reported. Economists expect a slowdown in growth due to supply-chain issues.
IHS Markit this morning downgraded its U.S. GDP growth forecast from 4.3% to 4.1% for 2022. The firm’s economists cited a temporary weakening in consumer spending in businesses vulnerable to a winter wave of Covid infections. It also saw inventory investment in 2021 that takes away from 2022.
The economists also raised their consumer inflation forecast from 3.7% to 4.2%. “Beyond disruptions to travel and entertainment, the Omicron strain may pose wider risks to supply chains and hence inflation.”
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The post Stock Market Mixed As Nasdaq Erases Gain, But Dow, S&P 500 Hit Record Highs appeared first on Investor’s Business Daily.
