The Dow Jones Industrial Average was whipsawing as a key Federal Reserve meeting gets set to begin. World Wrestling Entertainment surged past a buy point after scandal-hit CEO Vince McMahon quit. Gold investors were hit after Newmont cratered on earnings.
A couple of other stocks also moved above buy points despite the tentative action. McKesson and CBIZ both tested entries.
Volume was lower on both the Nasdaq and the New York Stock Exchange vs. the same time Friday.
The yield on the benchmark 10-year Treasury note rose 4 basis points to 2.82%. West Texas Intermediate crude oil rose about 2% to just under $97 per barrel.
Nasdaq Falls As Tech Stocks Stumble
The Nasdaq saw an attempt to break even fall short as it reversed to session lows. It was down 0.8%. China stock Pinduoduo was a standout as it gained nearly 4%.
The S&P 500 was struggling, dipping 0.2%. SVB Financial was bouncing back with a gain of about 7%.
A slender majority of the S&P 500 sectors were positive. Energy and utilities were the best performers. Technology and consumer discretionary lagged.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31873.40 | -25.89 | -0.08 |
| S&P 500 | (0S&P5) | 3951.48 | -10.15 | -0.26 |
| Nasdaq | (0NDQC ) | 11734.29 | -99.82 | -0.84 |
| Russell 2000 | 179.84 | +0.33 | +0.18 | |
| IBD 50 | 26.95 | +0.14 | +0.52 | |
Last Update: 3:06 PM ET 7/25/2022 |
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Small caps stood out by turning in a gain, with the Russell 2000 moving up about 0.4%.
The Innovator IBD 50 ETF, a bellwether for growth stocks, managed to grind out a fractional gain.
Dow Jones Today: Chevron Stock Leads
The Dow Jones Industrial Average was struggling, reversing lower heading into the close. It was only down fractionally.
Chevron was the top performer on the Dow Jones today amid positive action among energy stocks. It was up around 3% as it attempts to rebound from its 200-day moving average, MarketSmith analysis shows.
Salesforce was suffering. It was down more than 3% and is falling back toward its major moving averages. CRM stock is down around 31% so far in 2022.
Crunch Federal Reserve Meeting Key For Investors
With inflation still a key worry, Oanda senior market analyst said investors will be showing caution until the end of the Federal Reserve Open Market Committee meeting.
"The S&P 500 index is in for a choppy period leading up to the Fed," he said in a note to clients. " It will be hard for investors to aggressively buy stocks until they become confident that the Fed might pivot to a slower pace of tightening."
While there are signs the Fed could tighten at each meeting for the rest of 2022, Moya said what investors want to see "is that they could be open to only a half-point increase in September."
WWE Stock Charges Past Entry Amid Vince McMahon Fallout
WWE stock surged past a buy point after scandal-hit CEO Vince McMahon announced his retirement.
It comes after the firm launched a misconduct investigation into the executive. Its board is reportedly investigating a $3 million hush payment by McMahon to a woman over an alleged affair.
His daughter Stephanie McMahon has been named as co-CEO alongside Nick Khan.
"We are grateful for the opportunity to lead WWE together with our unmatched management team," they said in a statement. "We recognize this is a tremendous opportunity and responsibility, and we look forward to serving the WWE Universe."
The stock was also boosted after the firm hiked its Q2 revenue guidance. Loop Capital upgraded WWE to buy.
WWE stock exploded Monday and remained up around 8%. The powerful move saw it surge away from the key 50-day moving average. It also helped the stock clear a cup-with-handle base with a 68.83 buy point. The relative strength line spiked upward.
All-around performance is excellent for the stock, with its IBD Composite Rating a top-notch 97 out of 99.
Gold Stock Newmont Craters On Earnings
Bears gave gold investors a bloody nose following Newmont's earnings.
NEM stock was pummeled after the firm posted earnings per share of 46 cents. This was way below analyst expectations for 63 cents.
A decline in gold prices caused earnings to fall by 45% vs. a year ago. Revenue held steady. The stock has plunged about 50% from its April 18 high of 86.37.
Big Money has also been bailing on the gold miner. NEM stock currently holds a worst-possible Accumulation-Distribution Rating of E.
Outside Dow Jones: These Two Stocks Test Buy Points
McKesson is back below its entry after earlier passing a flat-base buy point of 340.04. The move came in middling volume, a negative.
The RS line is trying to move higher again after a period of sideways action. The move is part of a longer-term spike stretching back to late 2021.
The medical supplies giant boasts solid earnings and is in the top 2% of stocks in terms of price performance over the past 12 months.
CBIZ saw its relative strength line hit a new high as it moved above a double-bottom-base entry of 42.60. A key reason to hold off is that earnings are due early on Thursday. Investors may opt to add it to their watchlists for now.
Another approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the risk.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
