The Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 all opened lower on Friday morning. The Nasdaq is on course to snap its four-week winning streak while the Dow and S&P could still end the week higher.
X
Dow Jones down less than other indices
The Dow Jones was the best performer after the weak opening, trading 0.9% lower.
Meanwhile, the S&P 500 held a loss of over 1.3%. Small caps were also sold, and the Russell 2000 fell 2.1%. The Nasdaq composite is trading lower by 2%.
Volume was lower on the Nasdaq and higher on the NYSE compared to the same time on Thursday.
Elsewhere, oil prices rose 1.6% to $91.92 a barrel after falling below $90 in midweek.
An important reason why the market falls is an increase in government interest rates. The 10-year yield rose 10 basis points to 2.99% on Friday morning.
This is an important week because the indices have slowed their rise after several weeks of strong gains.
All major benchmarks now face important tests around their 200-day moving averages. The Dow Jones has successfully regained this zone while the S&P 500 trades just below.
Overview of the US stock market today
|
| Index |
Symbol |
Price |
Profit/loss |
% Change |
| Dow jones |
(0DJIA) |
33714.10 |
-284.94 |
-0.84 |
| S&P 500 |
(0S&P5) |
4229.85 |
-53.89 |
-1.26 |
| Nasdaq |
(0NDQC) |
12708.73 |
-256.61 |
-1.98 |
| Russell 2000 |
(IWM) |
194.85 |
-4.07 |
-2.05 |
| IBD 50 |
(FFTY) |
28.91 |
-0.68 |
-2.30 |
Last update: 12:08 PM ET 8/19/2022
|
The Nasdaq remains slightly below its 200-day line and is on track to post its first weekly loss in over a month.
It will be bullish for the market rally if all major indices retrace their 200-day lines.
On August 26, Federal Reserve Chairman Jerome Powell will deliver his annual speech at the Global Central Bank Conference in Jackson Hole, Wyo. The much-anticipated speech could signal whether borrowing costs will continue to rise and how long they will stay high to bring down. record inflation.
Bitcoin stumbles
Bitcoin is trading lower by 7.5% after hitting resistance and reversing at the 50-day moving average, following a month-long test. It was trading near $21,500 Friday afternoon.
The leading cryptocurrency broke from support in November 2021 and failed four recovery attempts before adding a fifth overnight. Weekly relative strength indicators are rolling over in reaction to the breakdown, raising the odds for a test of June’s 20-month low at $17,593.
A reminder: Bitcoin is traded 24 hours a day through the weekend, so further price movements are possible this week.
Inside the Dow Jones
Merck (MRK) led the upside among the Dow Jones components early Friday. The drugmaker gained about 1% and moved closer to a 95.82 flat-base entry. Shares remain just 4% below the buy point after retracing their 50-day moving average last week.
Leader in the healthcare system UnitedHealth Group (UNH) also led the upside among blue chips, gaining 0.8%. UNH stock is now extended from a cup-with-handles base with a buy point of 518.80.
The downside of, Salesforce.com (CRM) underperformed, with a loss of 3%.
Earnings Movers: Nvidia, Foot Locker
On Friday, Nvidia (NVDA) fell 4.5% as shares fell ahead of next week’s results. The firm is expected to report second-quarter earnings of 49 cents per share on revenue of $6.7 billion.
The chip maker recently regained support at its 50-day moving average, but remains below the 200-day mark.
Chip equipment stock Materials used ( AMAT ) reported earnings late Thursday, beating expectations on both the top and bottom lines.
The shares have reversed an early rise and are down 3.4%. The firm reported EPS of $1.94 on revenue of $6.52 billion.
Foot Locker (FL) went over 21% on strong earnings. The firm’s second-quarter results on the bottom line blew past estimates, with EPS of $1.10 per share vs. expected 80 cents. Revenue slightly missed expectations, coming in at $2.06 billion.
The stock rallied on heavy volume and regained support at its 200-day moving average.
Meme Stock Bed Bath & Beyond Collapses
Bed Bath & Beyond ( BBBY ) shares more than doubled before hitting 30 on August 17. Shares fell 19% on Thursday and have fallen another 40% this morning.
GameStop (GME) Chairman Ryan Cohen’s RC Ventures revealed that it had sold its entire BBBY stake. In addition, Bed Bath & Beyond announced that it had hired a bankruptcy specialist to help manage its unmanageable debt load. The stock rose 560% from a July 27 low of 4.54 to Wednesday’s high of 30.
Follow Rachel Fox on Twitter at@IBD_RFox for more Dow Jones and stock market commentary.
