Stock Market Lower As Powell Hearing Begins; Inflation, Earnings Also Ahead


The stock market fell in the first half-hour of trading Tuesday as investors awaited comments from Fed Chairman Jerome Powell, who faces Senate confirmation.

The Nasdaq composite fell only 0.1% and the S&P 500 lost 0.5%. The S&P tried to close back above its 50-day moving average Monday, but fell short.

The Dow Jones Industrial Average fell 0.5%. IBM slid 4.5% after Big Blue said it acquired Envizi, a data and analytics software provider. Terms weren't disclosed.

Volume was lower on the NYSE and Nasdaq compared with the same time on Monday.

The stock market is trying to build on positive price reversals Monday. To do that, it must first get past some important headlines this week.

Stock Market Watching Powell Hearing

Powell began his confirmation hearings today at 10 a.m. ET for a second term as Fed chairman. Any public comments by the head of the U.S. central bank are important, and the stock market is especially sensitive to his remarks now that the Fed is tightening monetary policy.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35873.45 -358.21 -0.99
S&P 500 (0S&P5) 4652.38 -24.65 -0.53
Nasdaq (0NDQC ) 14928.39 -7.51 -0.05
Russell 2000 214.58 -1.49 -0.69
IBD 50 41.32 -0.60 -1.43
Last Update: 10:04 AM ET 1/11/2022

The yield on the 10-year Treasury note was nearly unchanged at 1.78%. The yield has shot up in the past few weeks on expectations of a faster move to an interest-rate hike.

Besides Powell, the stock market is keeping a nervous eye this week on inflation data and earnings reports.

The consumer price index comes out Wednesday morning, followed by the producer price index on Thursday.

KB Home reports earnings Wednesday. Then BlackRock, JPMorgan Chase, Citigroup and Wells Fargo report Friday morning.

EV Industry Lower In Stock Market

Rivian Automotive hit a new low at the open but rebounded 2%. The Wall Street Journal reported that the EV company's chief operating officer left the company. A Rivian spokesperson called it a planned retirement.

Other EV stocks were mainly higher. Lucid Group, Li Auto and Nio jumped more than 3%.

But Tesla bounced 0.8% after its China sales hit 70,847 in December, a big jump from November sales of nearly 53,000. Tesla stock tried to break out of a lopsided double-bottom base last week, but it quickly retreated.

Innovator IBD 50 ETF fell 0.9%.

Only a few IBD 50 stocks are forming bases or trade near buy points. But several are now testing support at their 10-week moving averages, where buy areas seem to be emerging.

Stock Market Bounce May Produce New Entries

MP Materials bounced off its 50-day line Monday, although the miner of rare earths is volatile.

Alpha & Omega Semiconductor, Marvell Technology, Smart Global Holdings, Teradyne, Life Storage and Linde also are testing the 10-week line.

AerCap Holdings, a new company in the IBD 50, is forming a cup base with a 71.48 buy point. The airline jet and engine leasing company is making a fast turnaround, posting EPS gains of 24% and 226% the past two quarters. Sales rose 3% and 42%, according to MarketSmith.

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