The Dow Jones Industrial Average traded higher in today's stock market, following Wednesday's sell-off. Gains of over 1% on all the major indexes mark day one of a new rally attempt. Meanwhile, investors are awaiting a slew of major earnings reports and economic events next week.
Dow Jones In The Stock Market Today
At around 12 p.m. ET, the Dow Jones industrials were trading up 1%. The Nasdaq composite advanced 1.7%, while the S&P 500 rose around 1.2%. The Russell 2000 small-cap index gained 1.7%, leading the upside. Data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Wednesday.
Stocks moved higher across the board after a tough session Wednesday that saw the Nasdaq composite close more than 10% off its high. A drop of this size generally qualifies as an intermediate-term correction. IBD changed the market outlook to in correction earlier in the week.
Investors should be taking a defensive position in the market and raising cash. Now is not the time to be adding to your portfolio, but market engagement is still key. Be sure to watch the indexes daily for the next rally attempt. Keep your watchlists tight and be ready to strike once the market starts showing signs of accumulation.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35394.87 | +366.22 | +1.05 |
| S&P 500 | (0S&P5) | 4588.96 | +56.20 | +1.24 |
| Nasdaq | (0NDQC ) | 14584.95 | +244.69 | +1.71 |
| Russell 2000 | 207.84 | +3.39 | +1.66 | |
| IBD 50 | 40.10 | +0.64 | +1.62 | |
Last Update: 12:16 PM ET 1/20/2022 |
||||
In economic news, first-time claims for jobless benefits rose sharply last week to 286,000 from a revised 231,000 the previous week. This was well above Econoday's forecast for 207,000 claims. This follows the recent 52-year low of 188,000, notched in December. The latest wave of Covid-19, driven by the rapidly spreading Omicron variant, has weighed on the labor market recovery. The market was largely unaffected by the news and continued higher.
The majority of Dow Jones stocks traded over 1% higher. Travelers and Microsoft led the upside with gains of 5.7% and 2.5%, respectively. Insurance giant Travelers reported earnings ahead of the market open and handily beat earnings and sales estimates. The stock retook a 163.39 buy point in strong volume Thursday.
Meanwhile, Apple traded around 1.7% higher as shares gained support at the 10-week line. Apple is among the many major tech stocks reporting earnings next week. The iPhone maker will announce Q1 2022 financial results on Thursday after the market closes.
Stocks Making Notable Moves
Crude oil prices continued to move higher on Thursday, up 0.5% to over $87 a barrel. This pushed the Energy Select Sector SPDR up 1.4%. The ETF is extended from a recent 59.51 flat base buy point.
Baker Hughes, an oil and gas drilling machinery company, gained around 5% after reporting mixed results early today. Shares briefly rose above a 27.76 buy point of a cup base. Baker Hughes earned an adjusted 25 cents a share vs. a year-ago loss of 7 cents a share. This was below estimates for a profit of 28 cents a share. Sales of $5.5 billion were in line with estimates and results for the same quarter a year ago.
Meanwhile, Technology Select Sector SPDR gained 1.6% and outperformed among top sectors. Defensive sectors such as utilities and consumer staples also performed well.
Elsewhere, the growth-focused Innovator IBD 50 ETF gained 1.6%. MarketSmith Growth 250 stock and shipping transportation stock Matson broke out from a 93.27 cup-with-handle buy point. The Ocean transport leader rose in heavy volume after preannouncing Q4 EPS that well exceeded estimates late Tuesday.
Shares gapped up over 9% and feature a relative strength line that's also making a new high alongside the breakout, according to MarketSmith chart analysis.
"Continued strong demand for the China service was the primary driver of the increase," CEO Matt Cox said in a release. He forecasts demand will continue to remain "elevated" for the remainder of 2022.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
