The Dow Jones Industrial Average traded higher on Tuesday while the small-cap Russell 2000 index led the upside with gains of over 1%. Meanwhile, oil prices pulled back after weeks of rallying.
Stock Market Today
At the close, the Dow Jones industrials were up 1.1% while the Nasdaq composite rose 1.3%. The S&P 5oo held a gain of 0.8% in today's session. About an hour before the close, the Russell 2000 traded up 1.7% after underperforming the market recently. Volume was running lower on the Nasdaq and higher on the NYSE vs. the close on Monday. The Innovator IBD 50 ETF traded up 1.5% as growth stocks outperformed as well.
The energy sector led the downside on Tuesday, down over 2%, erasing Monday's gain. The real estate sector also underperformed, with a loss of around 0.9%. Financials and materials were among the sectors leading the upside with gains of 1.5% each.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35463.37 | +372.24 | +1.06 |
| S&P 500 | (0S&P5) | 4521.48 | +37.61 | +0.84 |
| Nasdaq | (0NDQC ) | 14194.46 | +178.79 | +1.28 |
| Russell 2000 | 202.70 | +3.34 | +1.68 | |
| IBD 50 | 38.39 | +0.56 | +1.48 | |
Last Update: 4:20 PM ET 2/8/2022 |
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The 10-year Treasury yield ticked slightly higher Tuesday to 1.95%. Yields closed at 1.93% Friday, which marked the highest closing level since 2019. Meanwhile, U.S. oil prices traded down 1.9%, as West Texas Intermediate crude traded below $90 a barrel. The commodity briefly topped $93 a barrel last week.
After a slight pause in the rally on Friday and Monday, the major indexes continued higher on Tuesday. Last week saw the indexes posting their best weekly gains so far this year. But the major indexes still remain below key moving averages. Both the S&P 500 and the Nasdaq are still below their 21-day line while the Dow Jones is meeting resistance at the 50-day line. The Dow closed at the 50-day line and could possibly regain support at that level this week.
Monday's The Big Picture column commented, "The follow-through on Jan. 31 signaled a new stock market uptrend. Yet, indexes are still seeking direction and investors are short on buying opportunities."
Stocks To Watch With Earnings This Week
Investors are gearing up for another batch of earnings this week from major companies. Pfizer and Chipotle Mexican Grill will be reporting Tuesday after the close. Disney, CVS and ride-share app Uber are set to report on Wednesday. Meanwhile, Coca-Cola and Twitter are reporting Thursday.
Top gainers in the Dow Jones included Amgen which popped around 8% and rushed past a 235.90 alternate buy point. Amgen reported better-than-expected earnings and announced a big share buyback. Shares spiked in heavy volume while the RS line also jumped.
American Express and UnitedHealth Group also outperformed with gains of around 3% and 2%, respectively.
Credit card company American Express powered above its 200-day moving average last month and scored a new all-time high on Tuesday. Shares are currently trading in the 5% buy zone of a four-month consolidation with 189.13 entry.
Dow Jones tech leaders were also up on Tuesday. Leaderboard stock Microsoft and Apple both rose over 1% each. Microsoft is above its 200-day moving average and holding support near 300, but the 50-day moving average is a potential resistance level to watch. Apple continued to hold support above its 50-day line.
Stocks Breaking Out
A handful of stock scored breakouts on Tuesday including Expedia, Stifel Financial, Lockheed Martin, Centene, Virtu Financial and more.
Expedia broke out above a 190.88 cup-with-handle buy point ahead of its earnings this week.
Zacks Consensus estimates revenue of $2.31 billion, which indicates growth of 151% from the same quarter a year ago. Meanwhile, analysts expect the bottom line to come in at 97 cents per share, or growth of 136% on a year-over-year basis.
Stifel Financial and Virtu Financial also scored breakouts. Stifel broke out above a 78.70 entry while the RS line spiked to a new high. This bodes well for the breakout. Virtu broke out above a 32.45 cup-base entry. Shares became extended in afternoon trading as the stock rose over 8%.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
