The Dow Jones Industrial Average traded slightly higher in today's stock market after moving sharply off intraday lows. The indexes all pared losses of over 3% in early trading. Investors are gearing up for a week full of corporate earnings results, economic data and a Federal Reserve policy-setting meeting.
Stock Market Today
At the close, the Dow Jones industrials traded up 0.3%. The Nasdaq composite rose 0.6% and the S&P 500 advanced 0.3%. Meanwhile, the Russell 2000 small-cap index traded up 2.3%. Early data showed volume was running higher on the Nasdaq and on the NYSE vs. the close on Friday.
The growth-focused Innovator IBD 50 ETF also reversed higher and rose 0.7%. Shares remain well below key moving averages .
Last week, IBD changed the market outlook to "correction" as the indexes moved to violate key areas of support. On Monday, both the S&P 500 and Nasdaq moved more than 10% below prior highs. Additionally, the S&P 500 fell below its 200-day moving average. However, the indexes traded off intraday lows and pared earlier losses of over 3%. When indexes reverse heavy losses and close higher, this often indicates underlying strength. Higher volume also supports this.
All S&P 500 sectors traded lower an hour before the close. However, by the closing bell, only three sectors were in the negative. Utilities, health care and consumer staples led the downside while consumer discretionary stocks reversed higher and rose over 1%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34366.67 | +101.30 | +0.30 |
| S&P 500 | (0S&P5) | 4410.50 | +12.56 | +0.29 |
| Nasdaq | (0NDQC ) | 13855.13 | +86.21 | +0.63 |
| Russell 2000 | 201.69 | +4.70 | +2.39 | |
| IBD 50 | 37.86 | +0.27 | +0.72 | |
Last Update: 4:26 PM ET 1/24/2022 |
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Investors are turning their attention to the Fed's next policy-setting meeting, which takes place Tuesday and Wednesday. The meeting could result in the Fed's first interest-rate hike of 2022, which poses a potential threat to the overall market. Economists expect the first interest rate hike in early March.
Elsewhere, cryptocurrency markets also came under pressure as investors flee riskier assets. Bitcoin fell to around $33,000 early Monday before reversing higher to $37,000, according to CoinDesk.com. The cryptocurrency has come down significantly off its record high of nearly $69,000 in November. ProShares Bitcoin Strategy ETF fell as much as 12% but pared losses to around 2.7%.
Dow Jones Today
The majority of Dow Jones stocks traded lower, while Home Depot and Travelers dodged the sell-off and rose around 4% each. Shares of Home Depot are gaining support at the 200-day line while Travelers held above the 21-day line. Shares remain inside a buy zone from a 163.39 flat-base entry. Travelers has a strong-looking RS line that's traded sharply higher in recent days.
Merck, Johnson & Johnson and Visa led the downside with losses of over 1% each. Meanwhile, tech leader Microsoft reversed higher and regained its 200-day moving average on Monday. Shares briefly dipped below this area for the first time since early 2020. The Dow tech giant is among major companies reporting earnings this week. Microsoft is expected to report Tuesday after the market closes.
Apple is also expected to report earnings this week on Thursday. Shares already broke below their 10-week line last week and closed slightly above the buy zone from a 153.27 buy point.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
