The major stock market indexes gave back a good portion of morning gains in afternoon trading Monday. Investors await Fed Chair Jerome Powell's Congressional testimony on Tuesday and Wednesday, where they hope to gain insight into the Fed's next move.
The Dow Jones Industrial Average crept up 0.2%. The S&P 500 reduced its gain to 0.4%. The Nasdaq composite gained 0.4%. The small-cap Russell 2000 fell short, dropping 1.4%.
Mixed Stock Market Volume Today
NYSE volume was slightly higher and Nasdaq volume was modestly lower than Friday at the same time.
The S&P 500 reclaimed the 21-day exponential moving average Friday and is now also above the 50- and 200-day lines. The Dow climbed back above its 21-day line but now tests resistance at its 50-day line. The Nasdaq also is above its main moving averages.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF lifted 0.7%. The Innovator IBD 50 ETF rose 0.3%.
Crude oil reclaimed 0.7% to $80.29 per barrel. The Energy Select Sector SPDR ETF shed 0.3%, as its tests the 50-day moving average.
Bitcoin futures rose 1.2% to $22,580. The 10-year U.S. Treasury yield edged up 2 basis points at 3.97%.
European stocks were mixed, with the German DAX adding 0.5% and the Paris CAC gaining 0.3%. The London FTSE edged lower 0.3% to close out the trading day.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33521.42 | +130.45 | +0.39 |
| S&P 500 | (0S&P5) | 4073.30 | +27.66 | +0.68 |
| Nasdaq | (0NDQC ) | 11806.37 | +117.36 | +1.00 |
| Russell 2000 | 190.66 | -0.84 | -0.44 | |
| IBD 50 | 24.08 | +0.27 | +1.13 | |
Last Update: 10:52 AM ET 3/6/2023 |
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U.S. January factory orders fell 1.6%, vs. the 1.8% expected drop, and it was a drop from December's revised 1.7% increase.
Powell will testify before the U.S. Senate Committee on Banking, Housing and Urban Affairs on Tuesday at 10 a.m. ET and Wednesday in front of the U.S. House Financial Services Committee at the same time. The next FOMC meeting will be March 22, when traders expect another interest-rate hike.
Eyes will be on Friday's February jobs report. The consensus is for 215,000 nonfarm payrolls, after January's surprise blowout 517,000 number.
Stock Market Movers: Network Stock Back In Buy Zone
Arista Networks notched up 1.7% and is back in a buy zone reaching to 147.96. The cloud networking solutions stock is in both the IBD 50 and IBD Big Cap 20 lists, and near its 52-week high.
Ciena eased off morning gains, rising 5.2% after reporting a beat on Q1 earnings per share and sales, and raising its full year revenue guidance before the opening bell. The optical communications software company stock broke out of a flat base but has faded below the 53.26 buy point, according to MarketSmith pattern recognition.
Analysts project 37% annualized EPS growth in the fiscal year ending in October and 38% growth in the next fiscal year.
IBD 50 stock MercadoLibre gained 3.2% and broke out of a base-on-base formation, hitting the 1,250.58 buy point. The Latin American e-commerce platform operator posted a beat on Q4 top and bottom lines on Feb. 23, starting a new ascent above its 21-day line. Shares are up 46% this year, and the relative strength line hit a new 52-week high.
IBD 50 stock Duolingo popped 4% in heavy volume, pushing it above the 5% buy zone of a choppy base with 113.46 buy point. Another entry was at 105.56. The online language-learning provider popped after posting better-than-expected Q4 sales and a smaller-than-expected loss last week.
The strong earnings report prompted several analysts to raise their price targets on the stock.
Electrical and utility equipment company Hubbell trimmed earlier gains to 0.1% as it tries to break out of a cup-with-handle base. It has topped the 256.53 buy point in unconvincing price and volume action.
Trane Technologies rose 0.3% and broke out of a flat base with a 194.76 buy point. The building climate control stock's relative strength line hit a new high, as indicated by the blue dot on the weekly MarketSmith chart.
Recent IPO Nextracker pulled back from early morning strength after breaking out of an IPO base on Friday with a 33.05 buy point. The stock is still barely in a buy zone reaching to 34.70.
The California-based maker of systems that align solar panels to track optimal sunlight started trading Feb. 9. Analysts have high expectations, with an estimated 91 cents per share in earnings for the fiscal year ending this month, up from 34 cents in the previous fiscal year, then growing to $1.27 a share the next fiscal year.
Data analytics software firm Alteryx gained 0.7%. The stock is on IBD Leaderboard, and it has a 70.73 buy point.
Valaris gapped up 6.3% in heavy volume in today's stock market trading, pushing it above the 5% buy range from its 70.27 buy point. The offshore drilling contract services company announced a three-year contract with Brazil's Petrobas worth $500 million.
Dexcom gapped down 8.1%, falling to its 21-day line. The glucose monitoring device maker is the S&P 500's biggest loser today.
Tesla dropped 2% on news it's lowering the price on its Model S and Model X electric cars. The stock is finding support at its 21-day line.
Analysts Selective In Homebuilder Stocks
In the stock market homebuilder group, KB Home traded lower 1.7% after JPMorgan downgraded the stock to underweight from overweight, and cut the price target to 32.50 from 36.
D.R. Horton reversed course and edged up 0.1% even though JPMorgan also downgraded the homebuilder to neutral from overweight, and cut the price target to 102.50 from 107.
Meanwhile, Meritage Homes rose 0.8% after JPMorgan upgraded the homebuilder to overweight from neutral.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
