After opening higher, the stock market reversed mostly lower Wednesday morning, as strength in the technology sector kept the Nasdaq composite afloat. Economic data seemed to slam stocks.
The Nasdaq composite rose more than 1% early on but pared its gain to 0.3%. It’s been the leading major index since the market’s May 20 low, up 9.5% through Tuesday’s close.
The S&P 500, which climbed 8.5% from the May 20 bottom, reversed lower 0.2%.
The Dow Jones Industrial Average was down 0.2% despite a rally in Salesforce (CRM). The software company jumped nearly 14% despite a mixed earnings report. The stock is now testing resistance at the 50-day moving average.
U.S. Stock Market Today Overview
|Last Update: 10:08 AM ET 6/1/2022|
Earnings fell 19% but still beat expectations, while revenue also topped views. But the company trimmed its fiscal 2023 sales outlook. Salesforce stock is trying to make a bottom after collapsing more than 50% from its November peak.
Dow, Nasdaq Top Tuesday Highs
The Dow and Nasdaq surpassed Tuesday’s highs in early trading. Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday.
The stock market ended May with the S&P 500 and Dow eking out fractional gains for the month, while the Nasdaq fell 2.1% in May. June begins with the market in a confirmed uptrend thanks to a follow-through signal on Thursday.
Technology and energy sectors spearheaded the stock market’s gains this morning as both rose 1.4%. Energy Select Sector SPDR (XLE) is on track for new 52-week closing high. The price of U.S. crude oil rose 2.3% to $117.39 a barrel after Europe moved Tuesday to ban some Russian crude imports.
The Innovator IBD 50 ETF (FFTY) was nearly flat as energy stocks led the index.
Energy Stocks Lead IBD 50
Earthstone Energy (ESTE), Callon Petroleum (CPE), Comstock Resources (CRK), Matador Resources (MTDR), Highpeak Energy (HPK) and Ranger Oil (ROCC) climbed more than 3%.
But Eli Lilly (LLY) fell below the 314.10 buy point of last week’s breakout from a base-on-base formation. So far, there’s no sell signal. The S&P health care sector was this morning’s weakest, down 0.5%.
Chinese electric-vehicle makers rallied as the industry rebounds from Covid lockdowns and new EV subsidies were reported. Nio (NIO) jumped 7.5%, Xpeng (XPEV) rose 1.8% and Li Auto (LI) climbed 2.7% — all in heavy volume.
The stock market fell after a series of economic reports.
The manufacturing sector made further headway in May, but the rate of growth was the slowest since January.
The seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers’ Index came in at 57.0 in May, down from 59.2 in April and below an earlier estimate. Economists had expected a 57.5 reading for May, according to Econoday.
At 10 a.m. ET, the ISM manufacturing index rose to 56.1 in May from 55.4, above forecasts for a drop to 54.5. Then the JOLTS survey showed April job openings at 11.4 million, meeting estimates. The March job openings number was revised up to 11.855 million from 11.549 million. In short, the job market remained tight as ever.
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