The Dow Jones Industrial Average closed slightly lower on Monday while the S&P 500 and Nasdaq also closed off highs. Stocks got off to a choppy start on the first trading day of August following very strong market performance in July. A few ocean shipping stocks reported earnings after the close.
Dow Jones Higher
At the close, the Dow Jones closed 0.1% lower after erasing earlier gains. The S&P 500 also erased early gains and dipped 0.3% at the close, while the Nasdaq lost 0.2%. Small caps fared better, with the Russel 2000 closing just below break-even.
According to early data, volume was mixed, running lower on the Nasdaq and higher on the NYSE vs. the close on Friday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32799.18 | -45.95 | -0.14 |
| S&P 500 | (0S&P5) | 4118.62 | -11.67 | -0.28 |
| Nasdaq | (0NDQC ) | 12368.98 | -21.71 | -0.18 |
| Russell 2000 | 187.15 | -0.10 | -0.05 | |
| IBD 50 | 28.49 | +0.04 | +0.14 | |
Last Update: 4:10 PM ET 8/1/2022 |
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The defensive consumer staples sector led the upside among the 11 S&P 500 sectors, while the energy sector led the downside. The Energy Select Sector SPDR lost 1.8% while crude oil prices dropped 4.7% at the close on Monday to just under $94 a barrel.
As for Dow Jones components, Boeing led the upside as the stock gapped up and rose 6.3%. The aerospace stock popped after reports that the Federal Aviation Administration approved inspection protocol revisions that will allow Boeing resume deliveries of its 787 Dreamliner. Shares are still below their 200-day moving average but quickly approaching this key area.
Elsewhere in the Dow Jones, oil stock Chevron led the downside with a 1.9% loss. On Friday, Chevron stock reported better-than-expected earnings and sales. EPS rose 240% year over year, which sent the stock nearly 9% higher. Shares are currently trading above their 50-day moving average for the first time since June. The Dow Jones stock is also approaching a 182.50 cup-base entry.
Ocean Shipping Stocks Reporting Earnings
Both Danaos and Matson reported second-quarter earnings after the market close. The firms are also gave future guidance which offered insights into shipping rates and goods demand. Ocean shippers recently saw profits for container-liners rise to record highs thanks to supply-chain bottlenecks last year.
Analysts expected Danaos earnings to jump 70% vs. a year earlier to $5.68 per share. Sales were expected to rise 41% to $206 million. The stock far exceeded expectations reporting earnings of $7.59 per share. Revenue was $250.9 million.
Shares were up 2% in after hours trading. The stock is trading below its 200-day moving average but is quickly approaching that level. Shares reclaimed their 50-day moving average late last week after rising over 10%.
Meanwhile, Wall Street projected Matson to earn $8.81 per share, a 137% increase. Sales were seen rising to $1.268 billion, up 45%. But Matson blew past estimates, with EPS of $9.49 during the quarter. Total operating revenue came in at $1.261 billion, however. This was just below estimates.
Matson reclaimed its 200-day moving average last week and shares are trading above their 50-day moving average and 21-day lines as well.
Outside Dow Jones: IBD 50 Energy Drink Company Soars
Shares of energy drink company Celsius rose 11.3% on Monday in very strong volume after the company announced a long-term strategic distribution arrangement with PepsiCo that includes an investment by the beverage and snack giant. Shares of the beverage maker are well extended from an aggressive buy point. The IBD 50 stock appears to be forming a big cup with a new buy point of 110.32.
Elsewhere, today's IBD 50 stocks to watch feature Commercial Metals rose over 3.1% as shares approach a double-bottom 42.99 buy point. The stock traded just 5% below the 5% buy zone as shares rose in heavier-than-normal volume. Share of Commercial Metals have been on a tear in recent days. The stock just reclaimed its 50-day and 21-day lines.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
