The Dow Jones Industrial Average and S&P 500 traded lower after briefly turning positive in Tuesday's session, the first day of trading after the Labor Day holiday weekend. The Nasdaq composite and small-cap stocks led the downside in late-afternoon trading.
Dow Jones Pares Gains, Reverses Lower
The Dow fell 0.5% after erasing brief gains, while the S&P 500 traded 0.4% and fared the best among the major indexes. Tech stocks struggled, with the Nasdaq down 0.6%. But lower still was the Russell 2000, which lost 0.9%.
While IBD's market outlook of "uptrend under pressure" remains, the Nasdaq is down around 12% from its mid-August highs, putting it under the traditional definition of a correction. This market state is generally defined as a pullback of 10% or more from the most recent peak.
After breaking support at their 50-day moving averages last week, the indexes remained below that level on Tuesday. Volume was lower by double-digit percentages on the Nasdaq and NYSE, compared to the same time on Friday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31152.73 | -165.71 | -0.53 |
| S&P 500 | (0S&P5) | 3909.29 | -14.97 | -0.38 |
| Nasdaq | (0NDQC ) | 11556.17 | -74.70 | -0.64 |
| Russell 2000 | 178.55 | -1.54 | -0.86 | |
| IBD 50 | 27.51 | -0.17 | -0.61 | |
Last Update: 3:00 PM ET 9/6/2022 |
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Crude oil futures traded slightly lower, giving up 0.2% to around $86.71 per barrel. Meanwhile, the 10-year Treasury yield continued sharply higher and is probing multimonth highs above 3.34%.
Defensive sectors such as health care, utilities and real estate led the upside with moderate gains. Meanwhile, communication services and energy stocks led the downside. The Energy Select Sector SPDR lost 0.5%, following last week's 3.5% decline.
On Monday, OPEC+ agreed to cut output by 100,000 barrels per day in October, on worries that energy prices are dropping too quickly. Natural gas sold off 5.6% despite worries about the Russia-Europe pipeline closure.
Outside Dow Jones: Dave & Buster's Earnings On Deck
Shares of Dave & Buster's traded just 3% below a 43.92 cup-with-handle entry on Tuesday ahead of earnings due Wednesday. The firm announces second-quarter earnings after the market closes. It will be the first earnings report for the firm since the sports bar and video game company changed leadership after buying competitor Main Event earlier this year.
Analysts expect Dave & Buster's EPS to fall 3% to $1.04 vs. $1.07 a year earlier. Revenue is expected to rise 14.5% to $433 million, continuing a recent growth slowdown. Dave & Buster's stock briefly broke out on Aug. 26, as shares cleared a cup-with-handle base buy point of 43.92. But the stock reversed lower that same day and triggered a sell rule on Sept. 1. A 7%-8% drop below the buy point is an automatic sell signal.
Dow Jones Stocks To Watch
Dow Jones leader Apple declined around 1%. The tech giant is set to unveil the iPhone 14, a fresh line of smartwatches and new AirPods at its "Far Out" product launch event scheduled for Wednesday.
The Dow Jones component is building a cup-with-handle base with a 176.25 buy point. The handle is a bit deeper than normal, at around 13%. But Apple must first find support and rebound from its 50-day moving average before a move higher can be expected. Shares sank deeper below that line today.
The firm's relative strength line remains near recent highs following a sharp run in recent weeks. A steady RS line during a weak market is a bullish signal and shows that a stock is holding up better than most.
Dow Jones stock 3M led the downside in the industrials with a loss of 4.1% on Tuesday. Chip giant Intel also led the downside with losses of 2.3%.
