The Dow Jones Industrial Average closed lower after a day of uneven trading. The index rose sharply in the morning but reversed to session lows in the afternoon. At closing bell, it pared some loss and ended 0.4% lower. The index is in bear-market territory since Monday. Other indexes were mixed as well.
The S&P 500, which rose as much as 0.8% earlier, fell 0.7% in the afternoon but nudged up to close 0.2% lower. Lithium and solar stocks showed small gains. The Nasdaq closed about 0.2% higher after shedding most of its 2% early gain. The Russell 2000 traded almost flat in the morning but notched a small 0.4% gain at close.
The Innovator IBD 50 ETF rose 1% after its decline to five year lows. Volume on the NYSE and on the Nasdaq was lower vs. the same time on Monday.
Crude oil posted a 2.6% gain and traded at $78.69 a barrel. The yield on the 10-year Treasury approached a vertiginous 4%.
Futures Fall On Apple iPhone News, Yields Nearing 4%
IBD 50 Stocks Show Gains
Several IBD 50 stocks are paring their significant recent losses today. Some of these highly rated stocks are on watch for new pattern formations if they start to get support.
Solar stock Enphase is up over 3% and is seeking support at its 50-day moving average.
Vertex Pharmaceuticals is up 3% within a flat base with a buy point of 306.05. Watch as it tests and moves above its 50-day line.
Top lithium maker Albemarle rose nearly 2% while Livent surged nearly 4%. Both are near their buy points of 273.78 and 31.63, respectively. Both stocks have stayed solidly above their 50-day lines through a recent sell-off.
Among solar stocks, Array Technologies rose over 4% and Canadian Solar more than 5%, although they remain in downtrends. First Solar is up over 3% and near new highs. Array is on the IBD 50, along with Enphase.
The Invesco Solar ETF rose more than 2%.
Early economic data helped the Dow Jones and other indexes get off to a good start.
New orders for durable goods fell 0.2%, less than expected, following a 0.1% decline in July. New-home sales rose to 685,000 annualized from July's 532,000, while the median sale price fell 6.3%. Sales price increase fell to single digits for the first time since the elevated print from middle 2021.
While signs of cooling are clearly there, Bill Adams, chief economist for Comerica Bank, says the less-than-expected fall in durable goods and higher home sales show that the economy was not in recession in August. Nonetheless, rising interest rates make a repeat of August's hot home sales unlikely.
