The Dow Jones Industrial Average fell Monday and gave back some of last week's sharp advances. Meanwhile, the Nasdaq and S&P 500 showed similar action and also traded lower. Defense, metals and oil stocks led gains as Russia's attack on Ukraine continued. Energy prices also continued to march higher.
Market conditions softened after follow-through days on the S&P 500 and Nasdaq last week. The new market uptrend means it's still a good time to buy stocks and increase exposure — albeit carefully. The major indexes still need to clear levels of resistance at key moving average levels before continuing higher.
The majority of the S&P 500 sectors traded lower on Monday. Energy and materials stocks were the only ones trading higher, while growth sectors like consumer discretionary and technology traded over 1% lower. The communication services sector lagged the most.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34456.55 | -298.38 | -0.86 |
| S&P 500 | (0S&P5) | 4442.37 | -20.75 | -0.46 |
| Nasdaq | (0NDQC ) | 13744.59 | -149.25 | -1.07 |
| Russell 2000 | 204.89 | -2.38 | -1.15 | |
| IBD 50 | 38.63 | -0.21 | -0.54 | |
Last Update: 1:42 PM ET 3/21/2022 |
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Energy stocks were boosted by a rise in U.S. crude futures, up nearly 5% to over $109 per barrel. Oil had fallen off highs of over $130 a barrel. Last week, oil fell to around $95, and started to rebound from that level.
After the Federal Reserve announced on Wednesday the first in a new series of interest-rate hikes, Treasury bond yields moved higher Monday. The 10-year U.S. Treasury yield ticked up to nearly 2.3% by early afternoon trading.
Dow Jones In The Stock Market Today
In early-afternoon trading, the Dow Jones industrials held a loss of 0.9%. After reclaiming the 50-day line last week, the index fell back below that average Monday. The Nasdaq also fell 1.1%, after a powerful gain last week. The index also gave back gains that had put it above the 50-day line.
The S&P 500 lost 0.5%, and the Russell 2000 traded 1.1% lower. Data showed volume is running lower on the Nasdaq and on the NYSE vs. the same time on Friday.
Lower volume on an down day like today is a good sign and indicates that institutions are not selling heavily after last week's accumulation.
Dow Jones stocks underperforming on Monday included Boeing, which fell 5.5% in heavy volume after a 737-800 plane operated by China Eastern Airlines crashed in the Guangxi region. There was no immediate word on casualties but the plane was carrying 132 people. Boeing stock had just rebounded from the November 2020 lows and reclaimed the 21-day line. However, Monday's decline put the stock back below this area.
Shares of Home Depot and Salesforce.com also led the Dow lower, with losses of over 3% each. On the upside, Caterpillar and Dow Inc. led with gains of over 1% each.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
