Gains faded badly for the Dow Jones Industrial Average and other major stock indexes Monday. Boeing and Chevron outperformed in the Dow Jones Industrial Average, while Bristol Myers Squibb topped a 65.95 buy point in the S&P 500, rising nearly 2% to 66.19.
The Dow Jones industrials ended mostly flat after rising nearly 0.7% intraday. American Express added 1.1% in the Dow Jones today. It's trying to break free from a 15-week consolidation with a relative strength line already in new high ground.
AXP stock is in the top-10 holdings of the Financial Select Sector SPDR ETF, which ended higher by 0.3%. After soaring 10 basis points Friday to 1.93%, the 10-year Treasury yield edged lower to 1.91%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35065.15 | -24.59 | -0.07 |
| S&P 500 | (0S&P5) | 4480.55 | -19.98 | -0.44 |
| Nasdaq | (0NDQC ) | 14002.18 | -95.83 | -0.68 |
| Russell 2000 | 199.45 | +1.07 | +0.54 | |
| IBD 50 | 37.82 | +0.09 | +0.24 | |
Last Update: 4:02 PM ET 2/7/2022 |
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Buyers pushed Trump SPAC Digital World Acquisition past a 91.60 buy point, but gains faded badly by the close. The stock hit an intraday high of 97.15 but closed at 83.88, down 0.7%. Digital World Acquisition struck a deal in October to bring Trump Media & Technology Group public through a merger.
Outside The Dow Jones
The Nasdaq composite lost 0.6%, and the S&P 500 eased 0.4%. Small caps held up well, with the Russell 2000 up 0.5%. Preliminary data showed slightly higher volume on the Nasdaq. NYSE volume fell a bit.
A big merger in the airline industry made early headlines when Frontier Group agreed to acquire Spirit Airlines for $6.6 billion. Frontier and Spirit are the two largest discount carriers. The deal, if approved, will create the nation's fifth-largest airline.
Spirit jumped 17% on the news. Frontier added 3.5%.
American Airlines, United Airlines and Alaska Air led the S&P 500, ending with gains of at least 4%. Online travel firms like Booking Holdings, Airbnb and Expedia also outperformed. So did hotel operators like Hilton, Marriott and Hyatt.
Best Growth Stocks To Buy And Watch
The Nasdaq and S&P 500 confirmed new uptrends with big percentage gains in higher volume on Jan. 31. But the Nasdaq is still below its 200-day moving average, a potential resistance level to watch. The S&P 500 is back above its 200-day line but still below the 50-day line. The nascent uptrend still looks fine, with cyclical stocks providing the leadership for now.
Another positive is that, at least through Friday's trading, there has not been a distribution day in the S&P 500 and Nasdaq since the follow-through day on Jan. 31.
Bitcoin rallied sharply for the second straight session, rising 6.5% to $44,300. After soaring nearly 12% Friday, the ProShares Bitcoin Strategy ETF jumped another 9%. Marathon Digital and Riot Blockchain surged 9% and 7%, respectively.
Stock Market Movers
Peloton backed off highs by the close, but PTON stock still jumped 21% on reports the company is an acquisition target. Late Friday, Amazon.com and Nike were mentioned as potential suitors. Analyst Dan Ives from Wedbush also mentioned Apple as a potential buyer.
Elsewhere, new issue Dutch Bros reversed 2.4% lower to 56.35 after soaring more than 9% intraday. Last month, BROS released strong preliminary Q4 results, noting a strong finish to the year, with same-store sales up 10.1%. The company also said it expects Q4 revenue to exceed the upper end of previous guidance. The company hasn't announced an earnings date yet, but it should be soon. BROS stock came public in September at 23 a share.
Energy stocks led again, with the Energy Select Sector SPDR ETF up 1.3%. Exxon Mobil and Chevron make up about 44% of the ETF. Both stocks hit new highs Monday but are too extended to buy.
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Inside the MarketSmith Growth 250, oil refiner PBF Energy, jumped past an 18.70 alternate entry. The stock closed at 19.32, up 5.6% in light turnover. Baker Hughes, meanwhile, jumped 3.5% as it tries to break out from a 13-week consolidation pattern.
Shipping stocks outperformed again in the IBD 50. Global Ship Lease is trading above a 26.61 buy point as it holds support at the 10-day moving average. ZIM Integrated Shipping Services, the leader in the group, rose another 3% to an all-time high.
Also in the IBD 50, U.K.-based mining and metals company Rio Tinto drew closer to a 78.86 buy point. Shares closed at 76.64, up 3.7%.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
