The stock market fell further Friday afternoon, with the technology-dominated Nasdaq composite leading declines by 1.8% as a number of energy and other highly rated stocks struggled.
The Dow Jones Industrial Average opened 0.7% lower and deepened its decline to 1.2%, shedding some 300 points. The S&P 500 is down 1.4%. Consumer staples and utilities fell the least amid the broad market decline.
The small-cap Russell 2000 fell more than 2%. Volume was higher on the NYSE and lower on Nasdaq vs. the same time yesterday.
The yield curve has remained inverted for 52 straight trading sessions. The two-year Treasury note's 3.51% fetches more than the 10-year Treasury now. A normal yield curve shows higher yields with longer-dated Treasuries.
The 30-year fixed mortgage rate averaged a high 6.02%. It has crossed 6% for the first time since 2008. The U.S. dollar index fell slightly to 109.62. The index measures the dollar against the exchange rates of other currencies including the euro, the British pound, Swiss franc, Japanese yen and the Canadian dollar. The Cboe Market Volatility Index rose above 27, the highest since mid-July.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30613.92 | -347.90 | -1.12 |
| S&P 500 | (0S&P5) | 3844.06 | -57.29 | -1.47 |
| Nasdaq | (0NDQC ) | 11347.28 | -205.08 | -1.78 |
| Russell 2000 | 177.32 | -4.31 | -2.37 | |
| IBD 50 | 26.73 | -1.00 | -3.61 | |
Last Update: 2:04 PM ET 9/16/2022 |
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The University of Michigan sentiment index showed inflation expectations for the next 12 months were the lowest since July 2021. According to Jeffrey Roach, chief economist at LPL Financial, suppressed consumer spending on autos and homes will cool inflation while falling gas prices will likely boost spending.
Energy, Other Stocks Hit
Crude oil rose slightly to 85.48 a barrel. Energy stocks are under the weather today, with some hitting sell signals.
ConocoPhillips is below its buy point of 115.57 after a promising breakout on Wednesday.
Range Resources slid more than 7% and is now more than 14% below its 34.10 buy point, which triggers a sell signal.
Sonoco gapped down below its 50-day moving average, and its loss from the 64.39 buy point exceeds 8%.
Brigham Minerals, Pioneer Natural Resources and H.F. Sinclair are still in cups with handles, but the handles are now deeper than normal.
Funds Take Interest In Other Stocks
A few energy stocks continue to receive interest from funds and are on watch.
Enerplus is in a cup-with-handle base with a buy point of 16.58. It is also above its 50- and 200-day moving averages. Golar LNG is below the 27.62 buy point it cleared a month ago. Both are trending above their 50-day lines.
First Solar rose 2% after news that the company expects earnings for the year in the upper half of its guidance range.
Fund Outflows On The Rise
As stock pickings become rarer, it is a good idea to see what fund managers are doing.
Recent weeks have been witnessing greater outflows than inflows. Fund outflows were $12.7 billion in the most recent week and brought net outflows to over $26 billion, according to Refinitiv.
Investors exited large-cap, technology and global equity ETFs, including the SPDR S&P 500 ETF and Invesco QQQ Trust , and bought or increased holdings in income and utility ETFs. Consumer Staples Select Sector SPDR and iShares MSCI USA Mini VF were gainers.
FedEx warned of weaker conditions and withdrew forward guidance for the year late Thursday. Because the company offers shipping and logistics services in more than 220 countries, it is considered an economic bellwether. Shares of FedEx gapped down 23%, the largest percentage fall in the history of the company.
