Major stock market indexes whipsawed after Fed Chair Powell noted signs of disinflation at the Economic Club of Washington, D.C. on Tuesday. The Dow Jones Industrial Average was down by 0.2% at 1:30 p.m. ET.
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The Nasdaq also slipped by 0.2% after losing ground Monday and Friday. The tech index has decisively cleared its 200-day moving average — a line of resistance since April 2022. The index has gained over 10% this year.
The S&P 500 set off the golden-cross buying signal as its 50-day line moved above the 200-day moving average. However, the index was down by 0.4% in the afternoon.
The small-cap Russell 2000 posted a 0.8% loss.
Volume on the NYSE and the Nasdaq was higher compared with the same time on Monday.
Crude oil rallied over 3% to trade at $76.92 per barrel. An earthquake in Turkey’s Iskenderun Port set ablaze shipping containers and forced freight carriers to reroute to other ports. China’s recovering demand has also driven prices up for two days in a row. The yield on the benchmark 10-year Treasury note fell 3 basis points to 3.61%.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33757.88 | -187.39 | -0.19 |
| S&P 500 | (0S&P5) | 4096.29 | -14.93 | -0.39 |
| Nasdaq | (0NDQC ) | 11865.03 | -26.27 | -0.20 |
| Russell 2000 | (IWM) | 193.16 | -0.96 | -0.49 |
| IBD 50 | (FFTY) | 23.20 | -0.06 | -0.26 |
Last Update: 1;30 PM ET 2/07/2023 | ||||
The Fed’s Powell spoke for the first time after Friday’s strong jobs data.
Powell observed that “wage increases are moderating closer to what is sustainable with a 2% target inflation. We expect significant progress on inflation this year.” The Fed raised rates by a quarter basis point to 4.5%-4.75% last week while pointing to encouraging pockets of “disinflation.”
However, Friday’s jobs data threw water on optimism that tightening will end soon. In January, the economy added 517,000 new jobs, a huge leap after December’s revised 260,000.
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Dow Jones Tech Leaders On Watch
Dow Jones tech stocks showed signs of resilience as low-volume pullbacks suggest higher prices ahead.
On Monday, Apple (AAPL) pulled back in light volume after surging Friday. Shares are up over 1%, remain above their 200-day line and may provide an early entry at 157.60 if the rally continues.
Also above its 200-day line, Salesforce (CRM) is on watch. Microsoft (MSFT) is rebounding nearly 4% after finding support at its 200-day line. An entry at 264.02 is possible.
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Stocks Moving Today
CVS Health (CVS) is up 0.5% after news that it plans to buy Oak Street Health (OSH) for $10.5 billion. OSH stock gapped up more than 30% in strong volume. Oak Street’s senior-focused service will expand CVS’ entry into primary health care.
Activision Blizzard (ATVI) rose over 5% after earnings. Microsoft’s bid for the video gamer remains in uncertain regulatory territory, here and abroad.
Shares of BP (BP) rose more than 7% after earnings. The company increased its dividend by 10% and is buying back more of its shares to the tune of $2.75 billion. The British oil giant has a strong Composite Rating of 89, but its RS Rating lags at 75.
Dow Jones component Boeing (BA) announced it will cut 2,000 jobs. Shares rose 2% in the afternoon session.
The AI race is on. Google-parent Alphabet (GOOGL) could launch its own AI-powered chatbot, called Bard, taking on rival Microsoft’s ChatGPT. GOOGL shares rose over 2% midday Tuesday. Microsoft has a surprise event that will likely throw light on integrating ChatGPT with its search engine, Bing.
Elsewhere, Chinese internet giant Baidu (BIDU) skyrocketed after unveiling plans to launch its own AI chatbot. Shares rose over 10% in strong volume.
Strong rental-car demand gave Hertz (HTZ) a 7% boost as it reported earnings. Surging leisure travel and continued automaker production roadblocks contributed to a strong quarter.
Meme stocks Bed Bath & Beyond (BBBY) and AMC (AMC) are moving today. Bed Bath & Beyond has plans to raise $1 billion by issuing new shares. Movie theater chain AMC intends to charge different prices, based on the seat’s location.
BBBY has crashed over 40% while AMC is lower by over 7%.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
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Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-falls-market-awaits-powell-test-for-next-run-apple-microsoft-set-up-in-healthy-pullback/?src=A00220&yptr=yahoo