The Dow Jones Industrial Average traded lower over the past hour of trading and closed mildly in the red. The S&P 500 also closed lower while the Nasdaq composite held a slight gain after reaching a new record high of 14,317.66 on Wednesday.
Stock Market Today
At the close of the day, the Nasdaq held a gain of 0.1%. The S&P 500 fell roughly 0.1%, while the Dow Jones industrials fell 0.2%. Meanwhile, the small-cap Russell 2000 index held a gain of 0.3% after paring earlier gains. Volume was running lower on the NYSE and higher on the Nasdaq vs. the close on Tuesday, according to early data.
Stocks were rocked last week after the Federal Reserve said it sees interest rates rising sooner than previously expected. The Dow suffered a weekly loss of over 3% on the news. However, the major index recovered nearly half those losses so far this week.
Additionally, IBD upgraded its official market outlook from “uptrend under pressure” to “uptrend resumes” amid the recent market strength.
Tuesday’s The Big Picture column commented, “Tuesday marked a change in IBD’s market outlook back to a confirmed uptrend, merely two days after the outlook slipped back to “uptrend under pressure” for the sixth time in 2021. With a brighter outlook, investors don’t need to be extra cautious as they would in a weaker market outlook.”
Dow Jones Today
Goldman Sachs attempted to regain its 50-day line after falling below this area of support last week. Last week, the stock erased a 10% gain from a 356.95 buy point of a shallow base, triggering the round-trip sell rule.
American Express stock fared much better than Goldman Sachs as shares are now extended from a 150.55 buy point of a cup with handle, according to MarketSmith chart analysis. The stock is still in buy range from a second rebound off its 10-week moving average, following the late-April breakout.
Elsewhere in the Dow Jones, shares of Microsoft (MSFT) slipped less than 0.1% by day’s end. The stock is still in buy range from a new cup base’s 263.29 buy point, according to IBD MarketSmith chart analysis. Shares of Microsoft stock broke out on Tuesday.
Stocks In The News
As for growth stocks, the Innovator IBD 50 ETF (FFTY) held a solid gain of 0.8% as shares are now attempting to regain the 50-day line. Stocks leading the upside in the index included Cowen (COWN) and Snap (SNAP).
Cowen rose over 6.5% and broke out above a consolidation pattern with a buy point of 43.27. The stock remains inside the buy area, which tops out at 45.43. The stock’s RS line is near its highs while the firm’s RS Rating of 93 is above the minimum of 80 we like to see for growth stocks breaking out. Cowen provides research and investment banking services to clients primarily in healthcare, technology, media and telecommunications.
On Wednesday, some stocks from the MarketSmith Growth 250 list broke out and traded inside buy zones.
Snap is a half-position member in Leaderboard.
KKR & Co. (KKR), provider of global alternative asset management services, broke out above a shallow cup pattern with a 59.25 buy point. The stock has a strong 93 Composite Rating and a relative strength line nearing all-time highs, a bullish sign. Shares remained inside the buy area in afternoon trading, which tops out at 62.21. But volume was lower than usual. The strongest breakouts tend to occur when volume is at least 40% higher than normal.
Finally, Vale (VALE) broke out above a 23.12 flat-base buy point but faded in the final hour. The stock has a perfect 99 Composite Rating and a 91 Relative Strength Rating. The RS line also has made a strong move higher in recent weeks and is near highs.
But investors should note, this is a stage three base. So, this poses extra risk.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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