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Investors Business Daily
Investors Business Daily
Business
MICHAEL MOLINSKI

Stock Market Jumps As Bond Yields Surge; Nasdaq Leads; Nike Gains On Earnings

The stock market shot up Tuesday at midday, with the Nasdaq composite leading. Financial stocks led the way, as bond yields kept rising.

The Nasdaq jumped 1.9% while the S&P 500 climbed 1% and the Dow Jones Industrial Average rose 0.6%. 

Dow component Nike jumped 4.5% after the athletic apparel company's February-ended quarter sales and earnings topped expectations. Direct to consumer sales jumped 15% to $4.6 billion, a business that Nike is trying to boost.

The small-cap Russell 2000 gained 0.7%. The index is on pace for its fifth gain in the past six sessions.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34774.94 +221.95 +0.64
S&P 500 (0S&P5) 4506.75 +45.57 +1.02
Nasdaq (0NDQC ) 14098.03 +259.57 +1.88
Russell 2000 206.84 +1.40 +0.68
IBD 50 39.29 +0.21 +0.54
Last Update: 11:54 AM ET 3/22/2022

Volume fell on the NYSE and Nasdaq compared with the same time on Monday.

Oil Prices Fall As Bond Yields Surge

The price of U.S. crude oil fell 1% to $111 a barrel, slowing from a three-day rebound. Energy was the weakest S&P sector, down 1.6%. The war between Russia and Ukraine dragged on, as Russia's advance seemed to be turning into a protracted war rather than a quick invasion.

Financial Select Sector SPDR climbed 1.7% to lead the S&P sector ETFs.

The 10-year Treasury note's yield rose 5 basis points to 2.36%, around the highest since May 2019. Investors had been worried about the possibility of the yield curve inverting, where the 10-year Treasury falls below the 2-year Treasury. The fact that the 10-year Treasury rose was seen as a good sign, especially for financial stocks.

Wells Fargo jumped more than 5%, climbing back into its buy range from a flat base entry of 52.66. Bank of America climbed 3.7%.

Apple, a big piece of the three major indexes, climbed 2% to above the 50-day moving average for the first time since Feb. 10.

Tesla climbed 2.7%, adding some space above its 50-day moving average. After many delays, the company opens its factory near Berlin today.

Farm equipment maker Deere added another 1.7% to its four-day winning streak, as its share price passed 430. The stock is extended past its buy range off a cup-with-handle pattern.

The Innovator IBD 50 ETF rose 0.5%.

Howmet, AOSL, Darling Lead Breakouts

Alpha & Omega Semiconductor climbed 10% and broke out above a 59.48 buy point from a cup-with-handle base in heavy trading. The handle in the base is 25% deep, which is much more than normal.

Darling Ingredients is just past the 80.31 buy point of a cup-with-handle base. Chicken sandwich chain Chick-fil-A chose Darling Ingredients to convert its used cooking oil into renewable transportation fuel.

Zim Integrated Shipping jumped 9% to a new high. Earlier this month, the shipping company declared a dividend of $17 per share payable April 4 to shareholders as of Wednesday.

Outside the IBD 50, Howmet Aerospace, a metals maker for the aerospace and transportation industries, regained its buy point of 36.13 off a consolidation. The stock had fallen as much as 10.5% below the entry but rebounded. Its share price jumped 2.3% Tuesday at midday.

Jackson Financial broke out of a double-bottom base with a 44.76 buy point in big volume. American International Group edged above the 63.64 buy point of a flat base but eased below the entry in weak volume.

Follow Michael Molinski on Twitter @IMmolinski

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