The Dow Jones Industrial Average closed near intraday lows while the Nasdaq composite pared modest gains to break-even after easing off session highs. The mixed performance came after Monday's stark sell-off saw the major indexes undercut important levels of support.
Dow Jones Closes Lower
Last week, the major averages posted weekly declines for the first time since mid-July, breaking their longest winning streak since November 2021. The S&P 500 was turned away at an important area of resistance at the 200-day moving average. But on Tuesday, the indexes were testing their 21-day exponential moving averages.
The Dow closed down 0.5% while the S&P 500 ultimately reversed lower, down 0.2%, after holding gains for most of the session. Small caps held small gains, with the Russell 2000 up around 0.2% but trading off intraday highs.
The Nasdaq composite pared modest gains to break-even in afternoon trading. Volume was lower on the Nasdaq and the NYSE vs. the close on Monday, according to early data.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32908.99 | -154.62 | -0.47 |
| S&P 500 | (0S&P5) | 4128.71 | -9.28 | -0.22 |
| Nasdaq | (0NDQC ) | 12381.30 | -0.27 | +0.00 |
| Russell 2000 | 191.03 | +0.39 | +0.20 | |
| IBD 50 | 29.38 | +0.47 | +1.63 | |
Last Update: 4:14 PM ET 8/23/2022 |
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Crude oil prices moved higher, up 3.6% to $93.61 after falling to as low as $87 a barrel on Monday. The commodity was rising on expectations for an output cut at OPEC's next meeting in early September. The 10-year Treasury yield also moved slightly higher to 3.05%, extending Monday's gains.
This week, investors are also looking ahead to the global banking conference in Jackson Hole, Wyo., where Federal Reserve Chairman Jerome Powell will deliver his annual address. The highly anticipated speech could signal if borrowing costs will continue to rise and how long they'll stay heightened to bring down record inflation.
Inside The Dow Jones: Oil Stocks Lead
Thanks to rising oil prices, Chevron led the upside in the Dow Jones on Tuesday. The oil giant rose 3.2% after gaining support at their 21-day exponential moving average. The stock is approaching a short-term resistance level at 164.66, which could serve as an early entry.
The oil stock also remains 11% below an 184.50 buy point. Other oil stocks outside the Dow Jones industrials like Halliburton, Apa Corp. and Schlumberger also outperformed, rising 7%, 5.4% and 6.6%. These three stocks lifted the S&P 500 on Tuesday and traded near important moving average levels.
Earnings Movers: Macy's Pops, Zoom Video Drops
Macy's surprised investors early Tuesday with smaller-than-expected earnings and sales declines in the second quarter. Shares rose 3.8% in late afternoon trading.
Retail stocks have generally reported mixed results over the past week as inflation pressures cut into consumer spending.
Analysts expected Macy's earnings for the quarter to fall 33% year over year to 86 cents per share. But the retailer's earnings per share fell 22% to $1. Analysts also saw a 2.9% decline sales, to $5.49 billion, down from $5.65 billion in 2021. But revenue only fell slightly to $5.6 billion.
The stock remains above its conjoined 50-day and 21-day lines. But Macy's still has a lot of repair work to do before it becomes a legitimate candidate for investors. Shares maintain a low 26 RS Rating at this time.
Elsewhere, Zoom Video reported mixed July-quarter results. The stock plunged over 16% Tuesday as Q3 guidance missed Wall Street projections amid weakness in consumer and small-business sales.
The stock is continuing to sink below its 50-day line.
Zoom earnings fell 23% to an adjusted $1.05 per share from a year earlier but topped estimates amid lowered expectations. Revenue rose 8% to $1.09 billion, slowing from 54% growth in the year-earlier quarter. A year earlier, Zoom earned $1.36 a share on sales of $1.02 billion.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
