The Dow Jones Industrial Average rose late but still closed lower as the stock market continued to struggle. Federal Reserve Chairman Jerome Powell secured Senate approval for a second term. Bitcoin fell amid a crypto bloodbath, with Grayscale Bitcoin Box (GBTC) and Queen Piece (COIN) Among the stocks caught in the crossfire.
stronghold (f) and general motors (GM) reversed the rating downgrade. A couple of stocks are worth adding to your watch list because they break the rules. Diamondback Energy (FANG) and SM energy (SM), both IBD 50 names, are carving bullish patterns.
Volume on both the Nasdaq and New York exchanges increased compared to Wednesday, according to early data.
Oil rallied again, with West Texas Intermediate crude up 1% to trade at nearly $107 a barrel.
Fed Chair Powell Removes Major Hurdles
Powell passed an important test Thursday after the Senate granted him a second term. In a vote of 80-19 votes, he secured a second round for four years at the helm of the world’s most important central bank.
He had to contend with two major crises under his watch: the Covid pandemic and inflation, which had risen to its highest level in 40 years.
Powell was criticized by some economists for trying to be too precise in his language at the last meeting of the Federal Open Market Committee. He said a 75 basis point hike “is not something the committee is actively considering” despite soaring inflation.
Meanwhile, the yield on the 10-year Treasury fell four basis points to 2.86%. It traded as low as 2.84% earlier today.
Yields have an inverse relationship with prices. The pullback from recent gains suggests that investors are fleeing to safer assets such as bonds amid the stock market turmoil.
Nasdaq reverses as tech stocks take a hit
The Nasdaq outperformed the major indexes, closing 0.1% positive. Lucid Motors (LCID) had the best performance with a score of 13.2%.
The S&P 500 rose from its lows, losing 0.1%. texture (TPR) was the winner here, up 15.5%.
Overview of the US stock market today
|Dow Jones||(0 DJIA)||31730.04||-104.07||-0.33|
|Standard & Poor’s 500||(0S&P5)||3930.29||-4.89||-0.12|
|defect 50||(fifty fifty)||29.29||+0.00||+0.00|
Last update: 4:12 PM ET 5/12/2022
Standard & Poor’s mixed sectors closed. Technology and utilities performed worse while healthcare and consumer appreciation made the best gains.
The little hats were the stars of the day, with the Russell 2000 index up 1.2%.
Growth stocks fell only to end up standing still. The Innovator IBD 50 ETF (FFTY) closed unchanged.
Dow Jones Today: Apple Stock, Disney Reverse
The Dow Jones Industrial Average fought off its lows but gave up more than 100 points. It fell 0.3%.
Apple stock was among the worst performers, down 2.7%. It is now completely shy of all of its major moving averages. Boeing (BA) was the worst performer dropping 4.8%.
Disney (DIS) also struggled as it fell 0.9%. He retreated after missing analysts’ views of both earnings and revenue growth in the fourth quarter. Home Depot (HD) and 15:00 (MMM) were the top performers, both up more than 2%.
Crypto Stocks Mix With Bitcoin Falling
Bitcoin crashed again on Thursday amid the turmoil in the cryptocurrency markets.
It was hit after Tether, a purported stablecoin linked to the US dollar, fell about 5 cents from the asset it was supposed to track. later recovered.
This comes on the heels of the failure of smaller competitor TerraUSD. Today it emerged that Terra will be halting new transactions on its blockchain, the core technology that powers the cryptocurrency.
Credit rating agency Fitch said the issues affecting both stablecoins would “accelerate calls for regulation”.
Bitcoin, the world’s most valuable cryptocurrency, is down more than 3% to below $29,000, according to CoinDesk. He had fallen more earlier in the session.
Cryptocurrency-related stocks have been enjoying mixed fortunes. Grayscale Bitcoin Trust fell 3.7% while crypto exchange Coinbase rebounded from the red to close 8.9% higher. Bitcoin miner Blockchain riot (RIOT) also managed to break out of negative territory to rise 6.9%.
S&P 500 flirting with a bear on a busy day; These market areas are clustered
General Motors, Ford stock down on downgrade
GM and Ford both closed lower after being cut twice.
Colin Langan, an analyst at Wells Fargo, has cut both car manufacturers from overweight to underweight. He also cut his price target for Ford from 24 to 12 and for General Motors from 74 to 33.
The analyst believes that this year could be a peak profit for the famous automakers. He believes the switch to electric cars could eventually affect the bottom line in the coming years. Langran said the costs of electric vehicles “have risen dramatically” and that supplies of raw materials are tight.
Ford stock closed 3% lower, losing ground on the main 50-day moving average. Ford was one of the best performing stocks in 2021.
General Motors stock closed down 4.6%. It is now about 14% below the 50-day line and more than 30% below the 200-day moving average.
Outside the Dow: These stocks are building bullish bases
The IBD 50 Diamondback Energy stock is forming a new consolidation pattern, according to MarketSmith analysis. At 127.04 it is far from the ideal buy point at 148.09.
The relative strength line at the highest levels on the weekly chart, a positive sign. Investors will be looking to see it reclaim the 50-day moving average. This is the rule of the second stage, which is considered an early stage, which increases the likelihood of its success. Analysts expect earnings per share to grow by 118% in 2022.
SM Energy is also forming an indefinite coherence. The perfect buy point here is 43.79. The stock settled above the 200-day moving average but needs to recover the 50-day line.
The overall performance is solid, which is reflected in the best possible composite rating for IBD of 99. The stock is a favorite with institutions, with funds currently owning 61% of the stock.
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