The stock market resumed its market correction, with the Nasdaq and S&P 500 plunging more than 2% as investors prepared for the worst from Wednesday's Fed meeting.
The Nasdaq composite tumbled 2.3% around midday, while the S&P 500 lost 2%. The Dow Jones Industrial Average slipped 1.2%, and the small-cap Russell 2000 fell 2.4%.
On tap were several earnings announcements scheduled for this week. Stocks were broadly lower. Volume fell on the NYSE and Nasdaq compared with the same time on Monday.
Pharma Stock Gains
Pfizer rose 1.4%, one of only two IBD 50 stocks higher today. The company and partner BioNTech are starting clinical trials of a vaccine specifically aimed at the omicron variant of Covid-19.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33897.16 | -467.34 | -1.36 |
| S&P 500 | (0S&P5) | 4313.96 | -96.17 | -2.18 |
| Nasdaq | (0NDQC ) | 13440.13 | -415.00 | -3.00 |
| Russell 2000 | 196.58 | -4.95 | -2.46 | |
| IBD 50 | 37.10 | -0.76 | -2.01 | |
Last Update: 12:02 PM ET 1/25/2022 |
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Microsoft announces results after today's close. The software giant's shares fell 3.4% by midday, trading back below the 200-day moving average.
Two Texas community banks were waiting for a breakout past their cup-with-handle patterns. CBTX hit its buy point of 31.66 briefly on Jan. 14 but since then fell back into its handle. Veritex has formed a nice cup-with-handle and is waiting to break out beyond its 43.43 buy point.
Veritex is scheduled to post its fourth-quarter earnings report today at the close of trading. FactSet's poll of analysts sees Veritex posting earnings of 72 cents a share for Q4. The consensus earnings estimate for 2022 is $3.10, versus $2.67 in 2021. Veritex has a Composite Rating of 91, an EPS Rating of 90, and a Relative Strength Rating of 92.
Both banks are part of the S&P Regional Banks ETF, which fell 1.5% by midday. Both stocks were patiently waiting Wednesday's Fed decision to give new guidance on the pace of its stimulus taper, and when the first interest rate increase will happen.
Big Banks Trade Mixed
Meanwhile, several U.S. and European banks were also waiting for the Fed to make an announcement about interest rates. When interest rates rise, it is generally seen as a positive for banks. It raises the amount that banks can charge for loans, which boosts margins.
HSBC extended well past its 30.99 buy point on a cup-with-handle pattern, gaining 2% by midday.
Innovator IBD 50 ETF fell 1.8%.
Meanwhile, materials stocks and mining stocks also fell Tuesday as the Cboe Market Volatility S&P 500 index (or VIX) Monday soared to the highest level since October 2020. The put-call volume ratio jumped to 1.08 Monday, 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.
Tech Titan Sinks Futures; Fed, Tesla Loom For Volatile Market
Mining Stocks Fall But Gold Gains
Freeport McMoRan slid 3% Tuesday, to well within a sell range of more than 8% below its buy point of 41.70.
However, the S&P 500 Gold ETF was up 0.4% as investors flocked to gold to escape the volatility of the market.
Lockheed Martin (LMT) gained 1.5% by midday as the company reported fourth-quarter results that beat analyst expectations. LMT stock is in consolidation with a 397.09 entry point that has an alternate entry at 378.20.
Defense stocks usually rally during geopolitical crises but were broadly down Tuesday as the Biden administration is considering sending several thousand troops to Europe. SPDR S&P Aerospace & Defense ETF fell more than 2.8% by midday.
Follow Michael Molinski on Twitter @IMmolinski
