The stock market increased its gains at midday Monday, with the Nasdaq composite up more than 2%. Spotify Technology shares jumped after Joe Rogan issued an apology over his controversial Covid podcasts.
The Nasdaq soared 2.2%, adding to Friday's 3.1% jump. The index is trying to remove resistance at the 14,000 level, so watch how the index trades around that level. The S&P 500 rose 0.9% and is back above the 200-day moving average, at least for now.
The S&P 500 is still on pace for its worst month since March 2020, off more than 6%. It's also the worst January since 2009, according to Dow Jones Market Data. Historically, when the S&P falls more than 5% in January, the next month has an average return of -1.1%. But the rest of the year ends higher 70% of the time, with an average gain of 2.6%.
The Dow Jones Industrial Average edged up 0.2% and also needs to make a move above the 200-day line. After surging 10.6% Friday on its earnings report, Visa gave back 1.5%.
Small caps caught up after lagging earlier. The Russell 2000 climbed 1.2%. Volume fell on the NYSE and Nasdaq compared with the same time on Friday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34796.54 | +71.07 | +0.20 |
| S&P 500 | (0S&P5) | 4472.86 | +41.01 | +0.93 |
| Nasdaq | (0NDQC ) | 14073.86 | +303.29 | +2.20 |
| Russell 2000 | 197.62 | +2.37 | +1.21 | |
| IBD 50 | 37.50 | +0.27 | +0.73 | |
Last Update: 11:54 AM ET 1/31/2022 |
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Technology and consumer discretionary — two sectors that struggled last week — led with gains of 1.3% and 2.5%, respectively. The consumer discretionary sector's gain today is the best since March 9 of last year, says Dow Jones Market Data. The index is working on its best two-day rally since November, 2020.
The Technology Select Sector SPDR ETF, which made a positive reversal to close the week, is up nearly 7% since Thursday's close. Transportation SPDR climbed 1.6%.
Apple climbed 1.5% at midday Monday as it tries to add some space above the 50-day moving average. Apple is rebounding after a downdraft that took shares down almost to the 153.26 buy point. Apple's relative strength line is at new highs, a good sign.
Indexes Remain Uncertain
Stock market indexes have been volatile since the start of the year, although the market seems to have found a footing for now. Indexes so far are holding above the Jan. 24 lows. IBD's outlook is "market in correction," which means investors should be mostly if not entirely in cash right now.
More earnings reports are due this week, including PayPal, UPS and Advanced Micro Devices on Tuesday. Amazon.com will report on Thursday. Its shares rose 2.7% at midday, although they're still in a slump.
Chinese stocks rebounded broadly. Kraneshares CSI China ETF surged 7.8% while iShares China Large-Cap rose 3.8%. Both ETFs are still in long downtrends, however. The Hong Kong Hang Seng index and Tokyo Nikkei 225 rose 1.1% Monday. The Shanghai exchange was closed Monday.
Citrix Systems fell nearly 4% after the enterprise software company confirmed reports that it is being taken private. Affiliates of Vista Equity Partners and Evergreen Coast Capital, an affiliate of Elliott Investment Management, will acquire Citrix in an all-cash deal valued at $16.5 billion, including debt. Citrix shareholders will receive $104 per share.
Spotify Rallies After Rogan Video
Spotify jumped more than 11%, although the stock remains deep in a correction. In a video posted Sunday, podcaster Joe Rogan issued an apology and promised to be more balanced. Rogan's podcast sparked a backlash after Rogan and some guests on the show questioned Covid-19 vaccines and the policies of public health authorities.
Musician Neil Young withdrew his music from Spotify as the backlash grew. Spotify also is creating a Covid-19 information hub.
Innovator IBD 50 ETF rose more than 1%, reflecting the stock market's strength. Onto Innovation rose 4.7% after coming close to the 200-day line. KLA and Ares Management are bouncing off the 200-day line and each rose more than 4%.
