The stock market remained mixed midday Wednesday, as indexes became more steady in the past hour or so and shipping stocks took on water.
The Nasdaq climbed 0.4% and is working on a three-day winning streak. The S&P 500 eased 0.1% while the Dow Jones Industrial Average fell 0.2%.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
The yield on the 10-year Treasury note climbed 4 basis points to 3.01%, rising past the 3% level for the second time this week.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33134.59 | -45.55 | -0.14 |
| S&P 500 | (0S&P5) | 4157.87 | -2.81 | -0.07 |
| Nasdaq | (0NDQC ) | 12226.17 | +50.94 | +0.42 |
| Russell 2000 | 190.41 | -0.49 | -0.26 | |
| IBD 50 | 33.82 | -0.27 | -0.79 | |
Last Update: 11:44 AM ET 6/8/2022 |
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Worries of a prolonged period of inflation mixed with slowing growth are weighing on investors. Today, the Organization for Economic Cooperation and Development sharply cut its global GDP forecast to about 3%, with a similar pace in 2023. Inflation should remain high due to elevated food and fuel prices, the organization said.
Stagflation Worries Hit Stock Market
The OECD report echoes a World Bank report Tuesday that warned the global economy faces a combination of high inflation and weak growth that was last seen in the 1970s. Also Tuesday, Treasury Secretary Janet Yellen said the U.S. economy is likely facing a prolonged period of high inflation.
U.S. crude oil climbed 1.6% at midday to $121.27 a barrel. The Energy Select Sector SPDR ETF rose 1.1% and hit another new high.
The Innovator IBD 50 ETF fell 0.6%, underperforming the stock market. Shipping stocks, which have been one of the few pockets of strength, sold off.
Zim Integrated Shipping, Matson and Eagle Bulk Shipping sold off 9% to 11% in heavy volume.
Matson fell below its 50-day and 200-day moving averages as the stock remains near consolidation lows. Zim gapped down and dipped below the 50-day line. Eagle Bulk is dropping to its 50-day moving average.
C.H. Robinson Worldwide, a logistics company, fell to its 50-day line, where it's looking for a bounce.
Market Rally Lacks Key Trait, Indexes Fall; 5 Stocks Near Buy Points
Novavax Wins Vaccine Support
Outside the IBD 50, Novavax climbed more than 4% in big volume after a Food and Drug Administration panel recommended its Covid vaccine for emergency use. The stock remains deep in a correction.
Ulta Beauty rose above the 426.93 buy point if a cup with handle base, but volume was light. The relative strength line, however, is at new highs.
Thor Industries climbed modestly after the RV maker reported better-than-expected earnings for its April-ended quarter. The stock has a big hill to climb after falling more than 56% from its March 2021 peak.
Both Thor Industries and Rev Group, an RV and emergency vehicle maker that announced results Tuesday, said demand has remained high. That's a positive sign for the RV industry, even as the price of gas continues to soar.
In economic news, the number of mortgage applications tumbled 6.5% last week, well below the Econoday consensus 2.3% decline expected by economists. Refinance applications fell 5.6% and home purchase applications fell 7.1%, according to the Mortgage Bankers' Association.
The index dropped to its lowest level in 22 years, said Joel Kan, the group's Associate Vice President of Economic and Industry Forecasting. The 30-year fixed rate increased to 5.4% after three consecutive declines, he added. "While rates were still lower than they were four weeks ago, they remain high enough to still suppress refinance activity."
