Early gains faded for the Nasdaq composite in late-afternoon trading Wednesday despite bullish earnings reports and price gains for Advanced Micro Devices and Alphabet. The Dow Jones Industrial Average rallied 0.6% in the stock market today, helped by solid performances from UnitedHealth Group and Travelers.
The S&P 500 was up 0.9% as several real estate investment trusts outperformed. Equity Residential broke out over a trendline, rising 4.5%. Two other REITs in the index — Extra Space Storage and Public Storage also outperformed with gains of 3.5% to 4%.
The Invesco QQQ Trust, which tracks the Nasdaq 100, climbed above its 200-day moving average, rising 0.8%. The index was weighed down by a huge drop in PayPal which plunged 25% on disappointing Q4 results. Netflix, DocuSign and Zoom Video were other notable laggards in the Nasdaq 100, with losses of more than 4%.
Sellers knocked small caps lower gain. The iShares Russell 2000 ETF was down 1%, but it's still up 3% for the week.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35604.32 | +199.08 | +0.56 |
| S&P 500 | (0S&P5) | 4586.02 | +39.48 | +0.87 |
| Nasdaq | (0NDQC ) | 14407.19 | +61.19 | +0.43 |
| Russell 2000 | 201.71 | -1.65 | -0.81 | |
| IBD 50 | 38.90 | +0.48 | +1.25 | |
Last Update: 2:48 PM ET 2/2/2022 |
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Losers topped winners on the Nasdaq by about 2-to-1. Breadth was better in the S&P 500, with advancers beating decliners by 2-to-1.
Stock Market Today
AMD stock was well off session highs but still rose 5%. Late Tuesday, the chip bellwether reported a 77% jump in quarterly profit. Revenue increased 49% to just over $4.8 billion. This year, AMD said it expects $21.5 billion in sales, nicely ahead of the $19.26 billion consensus.
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GOOGL stock gapped above its 50-day moving average, but sellers came into the stock near the 3,000 level. Shares still rose 8%. Total revenue increased 32% to $75.3 billion, with advertising revenue up 33% to $61.24 billion. Cloud revenue rose 45% to $5.54 billion. Alphabet also declared a 20-for-1 stock split which is set to take effect in July.
Inside the MarketSmith Growth 250, insurer Chubb backed off highs after a breakout over the 200 level. The Switzerland-based insurer is still in buy range from a 201.42 alternate entry.
In economic news, private payrolls fell by 301,000 in January, well below the Econoday consensus for a gain of 225,000. The data comes ahead of Friday's jobs report, which is expected to show nonfarm payrolls up 225,000.
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Benchmark WTI crude oil futures settled at $88.26 a barrel, up 6 cents. Supply data from the American Petroleum Institute Tuesday showed U.S. crude stocks fell by 1.6 million barrels last week. Analysts expected an increase of 1.5 million barrels. In related news, OPEC held production increases steady at 400,000 barrels a day.
Inside The IBD 50
Inside the IBD 50, Boise Cascade shot to an all-time high, up 9%, but it's extended now after clearing an alternate entry of 73.44.
Dutch Bros is a new add to the IBD 50. After soaring 12% Tuesday, BROS stock rallied off lows and was only down 1% in late trading.
In other stock market news, buyers flocked to Facebook owner Meta Platforms ahead of its earnings report after the close. FB stock moved above its 50-day line early in the session, but the stock backed off highs and was below the 50-day line in late trading.
Qualcomm also gapped above its 50-day line with earnings due after the close. QCOM stock was near session highs in late trading, up nearly 6%.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
