The Dow Jones Industrial Average moved higher Monday after opening negative. Meanwhile, the Nasdaq composite outperformed other major indexes with a gain of over 2% as the technology sector rallied.
Stock Market Today
In today's market, the major indexes extended gains from Friday as investors await another week of corporate earnings reports. The Dow Jones industrials were up 0.6%. The Nasdaq composite rose 2.4% and the S&P 500 advanced 1.3% and is now back above its 200-day moving average.
The Nasdaq cleared resistance at the 14,000 level in afternoon trading, a bullish sign for the tech-heavy index. Technology and consumer discretionary stocks made comebacks Monday, as both sectors led the upside. Both were among last week's laggards. Health care and consumer staples stocks lagged on Monday but still traded higher.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34950.23 | +224.76 | +0.65 |
| S&P 500 | (0S&P5) | 4487.30 | +55.45 | +1.25 |
| Nasdaq | (0NDQC ) | 14102.55 | +331.98 | +2.41 |
| Russell 2000 | 199.46 | +4.21 | +2.16 | |
| IBD 50 | 37.68 | +0.45 | +1.21 | |
Last Update: 1:42 PM ET 1/31/2022 |
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Despite the encouraging action on Friday and Monday, the S&P 500 remains on track for its worst month since March 2020. It's currently off more than 6% in the final trading day of January. According to Dow Jones Market Data, this may be the worst January since 2009. Historically, when the S&P falls more than 5% in January, the rest of the year ends higher 70% of the time, with an average gain of 2.6%.
The Russell 2000 gained 2.2% as small caps also outperformed. Volume was running lower on the Nasdaq and on the NYSE vs. the same time Friday, according to IBD data. The Innovator IBD 50 ETF traded up 1.3%.
IBD's market outlook remains "market in correction," which urges investors to raise cash and maintain minimal exposure to stocks at this time.
Earnings On Deck: Google, Amazon, AMD
Several firms are set to announce earnings this week, including PayPal, UPS and Advanced Micro Devices on Tuesday. Electronic Arts and Google-parent Alphabet are also expected to report on Tuesday.
For AMD, analysts expect earnings growth of 46% for the quarter, and 105% growth for the full year, according to IBD data. Earnings-per-share estimates for the full year were recently revised upward.
The chip designer has had a rough time recently, as shares fell over 20% in the last two weeks. After breaking below the 200-day line last week, shares are regaining this area today. Shares rose close to 6% Monday afternoon.
NXP Semiconductors, a fellow chip company, is expected to report earnings after the close today. The stock rose close to 6% in afternoon trading. After undercutting the 200-day line in January, shares are inching back toward this level.
On Wednesday, Facebook parent Meta Platforms and Spotify are set to report after the closing bell.
Amazon.com will report on Thursday. The stock was up 2.7% Monday but has also declined significantly in recent weeks. Shares are below their 50-day and 200-day lines.
Dow Jones Today
As for Dow Jones stocks, component Boeing outperformed with a gain of 4%. Disney and Salesforce.com also rose over 2% each.
Shares of Apple rose 1.5% in afternoon trading Monday after the company's earnings and revenue recently cruised past expectations for the December-ended quarter.
Shares are moving above the 50-day moving average and are extended from the most recent buy zone. Apple is rebounding after pulling back from a 20% profit target of a cup-with-handle breakout. The stock narrowly escaped a round-trip sell signal last week at the 153.26 buy point.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
