The Dow Jones Industrial Average and Nasdaq composite held near lows in Tuesday's session as the market retreat continues. Further bearish developments are emerging as the indexes crossed below key levels of support.
Dow Jones, Nasdaq Off Morning Lows
The Dow was down 1% at the close while the S&P 500 traded 1.1% lower. Small caps were pummeled, with the Russell 2000 index losing 1.5%. The Nasdaq also fell 1.1%.
Volume was higher by double-digit percentages on the Nasdaq and NYSE, compared to the same time on Monday.
Crude oil futures reversed, slumping 5% after strong gains on Monday. The commodity traded around $91.99 per barrel Tuesday afternoon.
Meanwhile, the 10-year Treasury yield closed flat at around 3.11%.
Major indexes succumbed to major selling pressure on Tuesday, dropping benchmarks below their 50-day moving averages, crucial levels of support. The breakdown may signal a further move to the downside.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31790.74 | -308.25 | -0.96 |
| S&P 500 | (0S&P5) | 3986.18 | -44.43 | -1.10 |
| Nasdaq | (0NDQC ) | 11883.14 | -134.53 | -1.12 |
| Russell 2000 | 184.70 | -2.54 | -1.36 | |
| IBD 50 | 28.39 | -1.09 | -3.70 | |
Last Update: 4:06 PM ET 8/30/2022 |
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The latest Job Openings and Labor Turnover Survey, or JOLTS, showed available positions ticked higher for the first time in four months, rising to 11.2 million. Sadly for equity bulls, this provides further impetus for the Fed to raise rates.
"Back in normal times (which we are so NOT in now), an increase in job openings would be greeted with cheers and high 5s," noted Jennifer Lee, Senior Economist with BMO Capital Markets.
"But these days, an increase is treated with a dose of skepticism. It could be taken as a sign that businesses are still unable to fill all of those needed positions."
Dow Jones Today
Financial and health care stocks fared the best but still traded lower.
The energy sector led the downside, in sharp contrast to Monday's bullish action. The Energy Select Sector SPDR fell 3.4%, wiping out weekly gains. However, the ETF is still forming the right side of a cup base, with a 93.41 buy point.
Chevron was among the biggest underperformers in the Dow Jones, as shares lost 2.5% in afternoon trading.
The stock remains 12% below a 182.50 buy point of a cup base. Shares came in to test support at their 21-day moving average. They are also below a more aggressive buy point above the 164.66 short-term resistance level.
Chemicals company Dow posted a sharp loss, dropping 2.8%. The manufacturer undercut support at its 50-day moving average, a bearish signal.
Elsewhere, Apple violated support at its 200-day line after reclaiming this moving average in late July.
AAPL stock had been closing in on a 179.71 buy point the past few weeks. Sadly, the recent pullback has weakened strong technical action and it now faces a test of support at the 10-week line.
Amgen fared best among Dow Jones stocks, falling only 0.1%, but none of the 30 components traded higher amid Tuesday's sell-off.
Chinese Search Engine Baidu Plunges
Baidu, a Chinese search engine, lost 6.5% on Tuesday after the firm reported earnings.
While its revenue exceeded expectations, thanks to growth in its cloud business, the firm revealed its first revenue contraction on an annual basis in over two years.
The stock declined in heavy volume and undercut support at its 50-, 200- and 21-day lines. Shares of Baidu have been trading lower since early 2021.
Shares of electric-truck maker Nikola also fell substantially in Tuesday's market. The stock was down 9.4% after the company moved to raise additional cash.
Nikola said in a filing it plans to issue up to $400 million of new shares at market prices.
