The Dow Jones Industrial Average closed lower on Monday after reports that blue chip stock Apple plans to slow hiring and spending growth next year to prepare for a potential recession.
Dow Jones Lower After Apple Will Slow Hiring
In afternoon trading, the Dow Jones fell 0.7% after gapping higher at the open. The S&P 500 also reversed early gains and was down around 0.8%. The Nasdaq also declined 0.8%.
Small caps followed the major indexes and were off highs, with the Russell 2000 sliding 0.3% at the close.
According to early data, volume was running higher on the Nasdaq and lower on the NYSE vs. the close on Friday.
Energy stocks led the upside among the S&P 500 sectors, while defensive sectors like utilities and health care lagged.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31071.75 | -216.51 | -0.69 |
| S&P 500 | (0S&P5) | 3830.83 | -32.33 | -0.84 |
| Nasdaq | (0NDQC ) | 11360.05 | -92.37 | -0.81 |
| Russell 2000 | 172.62 | -0.47 | -0.27 | |
| IBD 50 | 26.85 | -0.13 | -0.48 | |
Last Update: 4:16 PM ET 7/18/2022 |
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The broad-based SPDR Energy Select Sector ETF gained 2.2% while U.S. crude oil traded up 4.8% to around $102.29 a barrel.
This is the first time since June that the commodity has regained the $100 level.
As for Dow Jones stocks, Chevron was among top gainers as the integrated oil giant rose 1.4%. Chevron is slated to report second-quarter results on July 29.
Also leading the upside was Goldman Sachs with a 2.5% gain. The company reported a very strong quarter, with earnings of $7.73 per share, beating estimates.
Revenue at the Wall Street investment bank was down 22.9% on a year-over-year basis but still handily beat expectations. Goldman Sachs initially gapped up to reclaim support at the 50-day moving average. But the firm closed just below this level of support after paring earlier gains in afternoon trading.
On the downside among Dow Jones leaders, Apple lost 2.1% after Bloomberg News reported that the iPhone maker plans to cut spending and slow hiring across certain divisions in effort to "be more careful during uncertain times," quoting anonymous sources familiar with the matter.
Elsewhere, Bank of America traded flat after announcing earnings for the June-ended quarter. The firm showed revenue growth of 5.7% year over year, but earnings missed estimates by a few pennies. Bank of America noted a decline in investment banking revenue amid slower deal-making activity.
Stocks To Watch: Coal Energy Stocks Break Out
Shares of two coal energy firms scored breakouts on Monday. Coal energy continues to outperform this year and remains the No. 2-ranking industry group among IBD's 197 groups. Alliance Resource Partners held a 0.7% gain in afternoon trading after breaking out from a 21.34 cup-without-handle entry.
The Tulsa, Okla.-based firm has been strutting higher the past four straight weeks. Alliance's relative strength line also notched a new high alongside the breakout, a good sign.
Meanwhile, shares of Consol Energy, a fellow coal energy producer, broke out from a 59.48 proper buy point, according to a MarketSmith analysis. However, the stock slipped in afternoon trading and traded nearly 3% below the buy point about an hour before the market close.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
