The stock market rallied in afternoon trading as volatile trading continued. Major tech stocks held up, and earnings and other company news lifted some other stocks.
In afternoon trading, the Nasdaq surged 2% and the S&P 500 rose 0.9% as indexes erased losses. The Dow Jones Industrial Average was up 0.3%. The small-cap Russell 2000 bounced 0.5% after being down more than 1%.
Tech heavyweights Apple, Microsoft and Alphabet each rose more than 1%.
The Nasdaq's 4.3% loss Monday marked a three-day losing streak of more than 10%. It was the largest three-day decline since March 2020.
Today's volume rose on the NYSE and Nasdaq vs. the same time on Monday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32342.33 | +96.63 | +0.30 |
| S&P 500 | (0S&P5) | 4028.43 | +37.19 | +0.93 |
| Nasdaq | (0NDQC ) | 11848.04 | +224.79 | +1.93 |
| Russell 2000 | 175.80 | +0.90 | +0.51 | |
| IBD 50 | 29.83 | +0.07 | +0.24 | |
Last Update: 2:14 PM ET 5/10/2022 |
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The price of crude oil dipped 3% below $100, which would be its first close below that level since April 25.
Hotels Gain As Stock Market Falls On Inflation Concerns
Hotel chain Hyatt and franchiser Choice Hotels both reported first-quarter earnings that beat expectations, and said they expected travel demand to keep rebounding in the weeks ahead. Hyatt jumped 3.3% Tuesday, and Choice Hotels gained 2.1%. Hyatt is still trying to form a base since its last consolidation, which had a buy point of 95.02.
The hotel companies reported as consumers' eagerness to resume vacations clashes with rising prices for basic goods. Other travel stocks were not as lucky, as the S&P Transportation ETF fell 1% Tuesday. Investors remain concerned about the Fed's stance against inflation and the impact of China's lockdowns on the global economy.
"The challenge for monetary policy today is clear: to bring inflation down while maintaining a strong economy," Federal Reserve Bank of New York President John Williams said in a speech Tuesday in Germany. "I am confident we have the right tools to achieve our goals."
Americans' pessimism over the U.S. economic outlook and the ability of the government to help has reached multiyear depths as inflation pressures intensify, the May IBD/TIPP Poll finds.
The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, slid 4.3 points to 41.2, barely above March's eight-year low. Pessimism maintained its grip for a ninth straight month. Readings above the neutral 50 level reflect optimism.
Household financial stress hit the highest level since April 2020, at the outset of the pandemic, as gas prices continued to rise following Russia's invasion of Ukraine and the inflation rate hit a new 40-year-high 8.5%.
Techs Rise In Volatile Session; Has Inflation Fever Peaked?
Food And EV Stocks Gain On Earnings
Food distributor Sysco jumped 7% after the company beat sales and earnings forecasts for the quarter. This morning it reported earnings of 71 cents a share on sales of $16.9 billion. Analysts had expected EPS of 55 cents on sales of $16 billion. The stock briefly regained a cup-base buy point of 89.32 but then fell back.
Some EV stocks rebounded Tuesday.
Li Auto beat first-quarter earnings estimates but gave weak Q2 delivery and revenue guidance. Shares rose 2% after paring a larger opening gain. Byd rose 0.7% as it tried to break a three-day losing streak.
Tesla bounced 0.8% — not nearly enough to recover the 8% loss it suffered on Monday.
Pfizer rose 1.3% but continued to test resistance at the 200-day moving average. The pharmaceutical giant announced it is acquiring Biohaven Pharmaceutical in a deal valued at nearly $12 billion. Biohaven makes the migraine medication Nurtec ODT. Biohaven stock vaulted 71% to the highest since November.
Upstart plunged nearly 60% after the cloud-based consumer lending platform cut its full-year revenue forecast. Higher interest rates and prices threaten a recession this year, the company said.
The Innovator IBD 50 ETF fell 1.9%, lagging the stock market. The IBD 50 was dragged down by oil and coal stocks such as Comstock Resources, Matador Resources and Arch Resources.
Follow Michael Molinski on Twitter @IMmolinski
