The stock market gained narrowly Monday after a terrible April for the markets as another wave of earnings reports hits Wall Street, and the benchmark Treasury yield continues to climb.
The Nasdaq gained 0.3%, while the S&P 500 climbed 0.5%.
The Dow Jones Industrial Average gained 0.7%. Merck fell 1.6% after trying to break out of a 89.58 cup-with-handle entry on Friday. American Express dipped below its 200-day moving average.
Volume rose on the NYSE and Nasdaq compared with the same time on Friday.
The stock market just finished a month of April that suffered steep losses.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33122.68 | +145.47 | +0.44 |
| S&P 500 | (0S&P5) | 4156.14 | +24.21 | +0.59 |
| Nasdaq | (0NDQC ) | 12458.18 | +123.54 | +1.00 |
| Russell 2000 | 187.11 | +2.16 | +1.17 | |
| IBD 50 | 32.45 | +0.00 | +0.00 | |
Last Update: 10:42 AM ET 5/2/2022 |
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The S&P 500 tumbled 8.8% for the month, the largest one-month decline since the pandemic bear market in March 2020. With Friday's losses, the S&P 500 is down more than 10% from prior highs, which is what Wall Street considers to be a correction.
The Nasdaq sold off 13.3% in April in the largest monthly decline since October 2008, according to Dow Jones Market Data. It was the worst April since 2000, when the dot-com bubble was starting to unwind. The Nasdaq's four-week losing streak is now the worst since April, 2020.
The price of crude oil fell 3.5% to $101.04 a barrel. The yield on the 10-year Treasury note climbed 9 basis points to 2.97%, the highest since November 2018. The Fed meets Tuesday and Wednesday to make an expected half-point rate hike. Investors also are watching how the Fed plans to reduce its massive balance sheet.
Innovator IBD 50 ETF fell 0.5% Monday morning.
SSR Mining fell below its 50-day moving average in heavy trading a day ahead of its first-quarter earnings report. The producer of gold, silver and zinc is retracing gains from its Feb. 24 breakout.
Stock Market Movers: Spirit Rejects JetBlue Offer
Among stock market movers, Spirit Airlines slid 7.5% after the company rejected JetBlue's $3.6 billion buyout offer. Spirit Airlines said a deal with JetBlue is not likely to be completed. Instead, it will continue with an original plan to merge with Frontier Group Holdings.
"We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance with American Airlines remains in existence," Spirit's board said in a statement. JetBlue shares rose 1.4%, while Frontier fell 1.5%.
Earnings reports will continue to grab the stock market's attention.
After today's close, Arista Networks reports first-quarter results. The stock is forming a base and has been holding just above the 200-day moving average the past several days.
Expedia Group also reports after the bell. The stock is forming a cup-with-handle base with a 204.08 buy point. Expedia's report should offer some insights on the travel industry's recovery from the omicron variant.
Fertilizer Earnings After The Stock Market Close
Fertilizer makers Nutrien and Mosaic will announce Q1 earnings after the close today. Both stocks are testing their 10-week moving averages. Fertilizer prices have been jumping after Russia's invasion of Ukraine and other supply-chain problems.
In economic news, the seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers' Index climbed to 59.2 in April from 58.8 in March. It was lower than initial estimates of 59.7. The rate of overall growth accelerated for the third month in a row, and was the sharpest gain since September.
"Contributing to the stronger upturn in the health of the manufacturing sector was a faster rise in output during April," said a statement from S&P Global. "Growth in production was linked to greater new order inflows and the delivery of materials which allowed capacity to expand. The pace of expansion was steep overall and the sharpest since July 2021."
