Dow Jones, Nasdaq Sell Off In Afternoon Trading; These Stocks Score Breakouts Amid Market Volatility

The Dow Jones Industrial Average fluctuated between losses and gains in Thursday’s market, but ultimately closed lower. The Nasdaq composite led on the downside and traded strongly lower while the S&P 500 traded slightly lower. The major indexes steadied after a volatile week of trading but remain below key moving averages.

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Further comments from central banking authorities on Thursday continued to sway markets. Cleveland Fed President Loretta Mester said the Ukraine war is pushing inflation even higher and has intensified the need for interest-rate hikes. This came after Jerome Powell indicated support for a quarter-point interest-rate increase this month in testimony released on Wednesday.

Dow Jones In The Stock Market Today

In today’s market, most major indexes traded lower in late-afternoon trading after being mixed earlier in the session. The indexes also still remain below important moving averages and were turned away at key areas of resistance on Thursday.

At the close, the Dow Jones industrials were down 0.3%. The Nasdaq was down more than 1.6% and is now negative for the week while the S&P 5oo lost 0.5%. The Russell 2000 traded 1.3% lower.

Early data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Wednesday. Meanwhile, indexes have been selling off in heavier volume in recent sessions, which indicates institutional selling rather than institutional accumulation.

The yield on the 10-year Treasury note traded down slightly to 1.84% after rebounding higher from 1.72% on Tuesday.

Meanwhile, the price of U.S. crude oil futures finally cooled off to below $109 a barrel after moving above $111 a barrel, an 11-year high, on Wednesday.

In economic news, weekly jobless claims for the most recent week fell to 215,000 from 233,000 the previous week. The IHS Markit service sector PMI index jumped to 56.5 in February from 51.2 in January and down slightly from the initial estimate of 56.7. The PMI Output Index rose to 55.9 from January’s 51.1.

IBD 50 Stocks On The Rise

IBD’s market outlook remains at “correction,” and shows the market is not currently in an uptrend or reflective of optimal buying conditions. But investors may still want to watch for stocks trading near buy points because indexes are attempting to rally.

The Innovator IBD 50 ETF (FFTY) lost 0.1% on Thursday after successfully regaining its 21-day exponential moving average on Wednesday.

Gains in shipping stocks, steel producers and chemicals companies led the upside.

Cleveland-Cliffs (CLF) rose over 7.5% and broke out from a 24.77 double-bottom entry. The stock’s breakout occurred alongside the RS line notching new highs, a bullish sign.

Cleveland-Cliffs is part of the steel producers industry group which currently ranks No. 27 of the 197 groups IBD measures.

This Miner Surpasses An Early Entry

Southern Copper (SCCO), another top gainer in the IBD 50, rose over 3% as shares move closer to a stage-one 83.39 cup-base buy point. The metal ores miner is still 10% away from the entry.

A trendline drawn from the high near 80 during SCCO’s week ended May 21, 2021, does offer an early buy point near 69.50.

Shares of storage company Public Storage (PSA) rose 2.1% as shares approached a 377.46 entry in a flat base. The stock’s RS line also notched a new high on its weekly chart.

Meanwhile, grocery store stock Kroger (KR) gapped up and rose over 11% and broke out of a cup base after earnings beat estimates and the company gave a positive outlook.

Kroger shares moved above a 50.25 buy point and it’s now extended from the 5% buy zone. The relative strength line was at new highs even before the breakout, a bullish sign. The stock and fellow grocery chains got some airplay on Thursday’s IBD Live show.