Stock market indexes are trading lower Monday afternoon in a delayed reaction to Friday's strong June jobs report. Renewed worries about Covid in China and upcoming second quarter earnings reports are also weighing on investor sentiment.
The Dow Jones Industrial Average is holding up better than broad benchmarks, trading 0.1% higher after erasing losses. The S&P 500 is down 0.5%, while the Nasdaq composite is getting sold more aggressively, lower by 1.4%. All major indexes have lifted off lows posted in the first hour.
NYSE volume is matching Friday's depressed levels while Nasdaq volume is down 6.6% vs. the same time on Friday. NYSE posted its lowest volume since Dec. 31 on Friday. Summer volume often hits the lowest levels of the year, except for the holiday week in December.
Twitter is getting sold aggressively after Elon Musk pulled the plug on his $44 billion buyout offer and has now lost 9.5% on the session.
Tesla has sold off more than 6% at the same time, despite popular wisdom the stock would rally if Musk pulled out. The downdraft reinforces investor frustration all across the market landscape, a common emotional reaction during a bear market.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31336.10 | -2.05 | -0.01 |
| S&P 500 | (0S&P5) | 3876.44 | -22.94 | -0.59 |
| Nasdaq | (0NDQC ) | 11467.46 | -167.85 | -1.44 |
| Russell 2000 | 173.12 | -2.47 | -1.41 | |
| IBD 50 | 26.96 | -0.27 | -0.99 | |
Last Update: 1:54 PM ET 7/11/2022 |
||||
In other stock market action, Uber is down 4.2% following a Guardian bombshell expose on potentially illegal practices that include exploiting violence against drivers for political purposes.
IBD 50 components Murphy USA and Cross Country Healthcare are posting strong gains, despite the weak market, and are trading close to buy points.
Second Quarter Earnings And June CPI Report
Stock market investors are holding tightly onto their wallets ahead of second quarter earnings season, which starts this week.
Delta Air Lines results on Wednesday will be dissected for clues about airline industry margins after this year's blockbuster summer travel season.
The week's biggest reports are set for Thursday and Friday, when JPMorgan Chase, Citigroup and Wells Fargo tell investors how they're adjusting to high inflation and an aggressive Fed. Profit margins and forward guidance could influence market sentiment, and price action, until big tech companies report later this month.
IBD 50 stock UnitedHealth Group also reports on Friday. The Dow component mounted a 518.80 buy point after Friday's jobs report, but pulled back into the closing bell. It's now trading less than a point under that level and can be watched for another advance. S&P Capital IQ expects UNH to post a $5.21 earnings-per-share (EPS) profit for the second quarter.
On the economic front, Wednesday morning's June CPI report is expected to show a staggering 0.9% increase in prices while Core CPI comes in at a smaller 0.5%. Inflation stands at an 8.6% annualized rate, following May numbers, and anything higher in June may undermine a growing belief that inflation has peaked.
Market Rally Hits China Wall; Tesla, Twitter Tumble
Monday Stock Market Highlights
Murphy USA, No. 3 on this week's IBD 50, has rallied 4.4% and crossed the 262.68 buy point in a horizontal consolidation pattern. The buy range goes to 275.81. The stock is now trading at an all-time high.
Also on IBD 50, Cross Country Healthcare added to Friday's gains, rallying 4.8% before stalling within 8 cents below the April buy point at 24.06. The stock boasts a 97 Composite Rating and a 94 Relative Strength Rating, which marks another 52-week high.
Meta Platforms is struggling on Monday afternoon, down 4.4% following a Cowen downgrade. Influential social media analyst Laura Martin is warning investors to "remain on the sidelines while they assess several long-term valuation risks."
