Dow Jones Holds Gain, Nasdaq Trades Lower; These Financial Stocks Gear Up For Earnings While Chip Stocks Show Strength


The Dow Jones Industrial Average drifted off its highs in today's stock market but remained positive. The Nasdaq, continued trading lower and fell over 1% in afternoon trading. The S&P 500 also moved lower.

Dow Jones In The Stock Market Today

At around 1:30 p.m. ET, the Dow Jones industrials were trading up 0.1%, after paring earlier gains. The Nasdaq composite was down around 1.3%. The S&P 500 declined roughly 0.4%, while the Russell 2000 small-cap index came down off morning highs and traded near break-even. Volume was running lower on the Nasdaq and higher on the NYSE vs. the same time on Wednesday.

The Dow Jones was led higher by strong gains in Boeing, up over 3.5%. Shares are close to regaining their 200-day line after finding resistance at this level for the past several months. Financial stocks also performed well in the Dow Jones, including Goldman Sachs, which was up over 1%.

Several bank stocks — including fellow blue-chips JPMorgan and Wells Fargo — are gearing up to report earnings Friday before the market opens. Analysts expect JPMorgan to report earnings of $3.01 a share on sales of $29.71 billion. Meanwhile, Wells Fargo is expected to report earnings of $1.09 a share on $18.38 billion in revenue.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 36360.52 +70.20 +0.19
S&P 500 (0S&P5) 4701.66 -24.69 -0.52
Nasdaq (0NDQC ) 14989.44 -198.95 -1.31
Russell 2000 216.09 +0.10 +0.05
IBD 50 42.57 -0.10 -0.23
Last Update: 1:28 PM ET 1/13/2022

Shares of JPMorgan have been gaining in heavy volume in recent sessions, and the stock remains below a 173.06 flat-base buy point. Wells Fargo is currently extended from a recent 52.66 buy point of a flat base.

In economic news, the Labor Department reported early Thursday that initial jobless claims rose to 230,000 last week, up from 207,000 the week before. That was greater than Econoday's estimate for 205,000 claims but remains well below levels from the start of the Covid-19 pandemic.

Additionally, the producer price index surged 9.7% in December, on a year-over-year basis. This was slightly below economists estimates for a 9.8% gain. On a month-over-month basis, producer prices climbed 0.2% in December, below Econoday's estimate for a 0.4% increase.

Meanwhile, the 10-year Treasury bond yield held steady around 1.72% on Thursday, after a gain of well over 20 basis points last week.

Chip Stocks Making Notable Moves

The Innovator IBD 50 ETF (FFTY) reversed its early gain of over 0.8% to a small 0.2% loss. Growth stocks have suffered as bond yields rise. Rising yields tend to make riskier, high-growth opportunities less appealing for investors.

But several semiconductor stocks continue to outperform as these industry groups rank highly among IBD's 197 tracked groups. Taiwan Semiconductor, which is part of the semiconductor manufacturers group, surged 7% in heavy volume. Shares gapped up above a 135.60 buy point of a cup with handle, according to MarketSmith. Early Thursday, the chip company reported Q4 earnings and sales that beat Wall Street targets.

Semiconductor makers rank No. 13 out of our 197 industry groups and certainly qualify as a leader.

Other leading chip stocks scoring big gains in heavy volume included Lam Research, Applied Materials and STMicroelectronics.

STMicroelectronics is part of the semiconductor makers group as well. Shares rose over 1% but remain off intraday highs. The stock is shaping the right side of a flat base with a 52.25 entry.

Two stocks from the semiconductor equipment manufacturers group, which ranks No. 8 among IBD's industry groups, also performed well. Lam Research, up close to 3% after trading off the highs, is extended from a 673.90 buy point of a long consolidation. The stock reclaimed its 21-day line but is hitting some slight resistance near the Jan. 4 high.

Finally, Applied Materials also pared an early 2% gain to break-even on Thursday. Shares are still back in a buy zone from the recent 159.10 flat-base entry. Investors should note the stock already triggered the 7%-8% loss-cutting sell rule on Monday from the initial breakout.

Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.

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