The stock market could not sustain the momentum from Monday's positive reversal and took losses of more than 2% in the first half-hour of trading.
The Nasdaq composite tumbled 2.7% at 10 a.m. ET, while the S&P 500 lost 2.5%. The small-cap Russell 2000 fell about 3%.
Wall Street is in a touchy spot this week, waiting for the Federal Reserve to give new guidance on the pace of its stimulus taper, and when the first interest rate increase will happen.
Also, some major earnings reports are coming out. Microsoft announces results after today's close. The software titan's shares fell 2.7% early Tuesday, trading back below the 200-day moving average.
Prior to Monday's positive price reversals, the stock market seemed to have gotten oversold. As The Big Picture noted, the Cboe Market Volatility S&P 500 index (or VIX) soared to the highest level since October 2020. The put-call volume ratio jumped to 1.08, the highest in at least 10 months. Such extreme levels of investor fear can mark at least short-term market lows. The VIX was rising again this morning.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33708.62 | -556.75 | -1.62 |
| S&P 500 | (0S&P5) | 4307.57 | -90.37 | -2.05 |
| Nasdaq | (0NDQC ) | 13496.13 | -272.79 | -1.98 |
| Russell 2000 | 195.82 | -1.17 | -0.59 | |
| IBD 50 | 36.84 | -0.75 | -2.00 | |
Last Update: 10:02 AM ET 1/25/2022 |
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However, the stock market could not extend Monday afternoon's bullish sentiment. Stocks were broadly lower. Volume fell on the NYSE and Nasdaq compared with the same time on Monday.
Tech, Materials, Industrials Lead Stock Market Losses
By sector, technology, materials and industrials performed poorest, all down more than 3%. Technology Select Sector SPDR sank back below its 200-day line. Other S&P sector ETFs were down at least 1.7%.
The Dow Jones Industrial Average fell 2.1%. Dow component Verizon Communications reversed modestly lower after the company reported fourth-quarter adjusted earnings that topped views. Revenue met analysts' estimates, and the fiscal 2022 outlook came in slightly above Wall Street expectations.
Steel Dynamics fell even though it beat Q4 expectations. The steelmaker's earnings soared 496% to $5.78 a share with revenue up 104% to $5.31 billion. The company was upbeat on steel demand, expecting domestic steel consumption to ramp up from 2021 levels. Steel Dynamics stock sank to a nine-month low Monday before rebounding.
Lockheed Martin shares rose after the aerospace company's fourth-quarter results beat expectations early Tuesday. Earnings per share rose 12% to $7.47 on revenue of $17.73 billion, a 4% increase.
The stock is trading near the 378.20 buy point of a cup base within a larger, undefined pattern with a higher 397.09 buy point. A standoff between Russia and Ukraine and its Western allies has put a new focus on defense stocks.
Stock Market Earnings: Defense Companies Due
Northrop Grumman, which reports earnings Thursday, is forming a cup with handle with a 406.94 buy point. Curtis-Wright is above its 137.07 buy point. General Dynamics, which reports Wednesday, is near the 209.18 buy point of a cup with handle.
But the overall industry is mixed. SPDR S&P Aerospace & Defense ETF is still down more than 4% this month.
Innovator IBD 50 ETF fell 2% as many growth stocks trimmed the gains made Monday afternoon.
Lam Research slid more than 5% a day ahead of its earnings report. The stock is well below its 50-day and 200-day averages.
Pfizer rose 1.4%, the only IBD 50 stock higher today. The company and partner BioNTech are starting clinical trials of a vaccine specifically aimed at the omicron variant of Covid-19.
The S&P CoreLogic Case-Shiller National Home Price Index rose an adjusted 1.2% in November, above the Econoday consensus forecast and a higher pace than the previous month's 1%. For the 12 months ending in November, the index rose 18.3%, just above views.
