The stock market returned early gains and fell broadly in afternoon trading following news the economy grew 6.9% in the fourth quarter, easing the minds of investors after a lukewarm reaction to the Fed’s decision yesterday.
X
The company’s profits were mixed overall, with the most expected Tesla (TSLA) which reported better-than-expected fourth-quarter earnings late Wednesday. But the electric-vehicle manufacturer said supply-chain issues continue to hinder production. The stock fell more than 8% in early-afternoon trading, deepening the downward trend.
At 1:20 pm ET, the Nasdaq lost more than 1%, the S&P 500 was down 0.7%, and the Dow Jones Industrial Average bounced back from mild gains to a 0.3%loss. Russell 2000 fell 2%.
Volumes rose on the Nasdaq and NYSE compared to the same time on Wednesday.
US Stock Market Overview Today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34192.35 | +24.26 | +0.07 |
| S&P 500 | (0S & P5) | 4335.50 | -14.43 | -0.33 |
| Nasdaq | (0NDQC) | 13426.90 | -115.22 | -0.85 |
| Russell 2000 | (IWM) | 192.45 | -3.52 | -1.80 |
| IBD 50 | (FFTY) | 36.95 | -0.28 | -0.75 |
Last Update: 1:18 PM ET 1/27/2022 |
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All eyes are focused now Apple (AAPL), which will announce results for this December quarter after closing. Analysts expect revenues of $ 1.90 per share and sales of $ 119 billion. The stock rose 0.2% in the early afternoon on Thursday, trying to end a seven-day straight loss.
Stock Market Today: Ingesting Fed News
The Fed said Wednesday that it plans to end asset purchases in March and set the stage for the expected interest rate hike next month. But after those announcements, Fed Chairman Jerome Powell’s comments seemed too aggressive with investors. Investors are worried that the Fed could raise rates too quickly, slowing the economy.
Now, the market seems to be loosely moving – at least going early. In part, that’s because the U.S. Commerce Department reported that GDP grew 6.9% in the fourth quarter. Growth exceeded the 5.7% increase in Econoday’s consensus of economist forecasts, and it marked a sharp acceleration from the 2.3% increase in GDP in the third quarter.
Two infrastructure games, Worm (CAT) at Deere (DE), are both closing at their respective buy points.
Caterpillar, which makes tractors and mining equipment, gained 0.8% on Thursday, closing its 230.53 buy point from a cup-with-handle pattern.
Deere, which also makes tractors but specializes in farm equipment, gained 2.2%. It forms what can be called a consolidation pattern with a buy point of 393.10. It completed the cup-with-handle pattern in August.
IBD 50 Leaders Gain
IBD transportation leaders 50 Matson (MATX) at Zim Integrated Shipping (ZIM) both climb to or more of their purchase ranges. Matson is firmly in its buy range after passing a 93.27 buy point from a cup-with-handle pattern. So far, Zim has surpassed its buy range after passing 58.41 buy points from a cup-with-handle.
Matson is a quarter-size-position member of the IBD Leaderboard.
The iShares US Transportation ETF (IYT) which covers the S&P Transportation index climbed as much as 1.9% before returning to a gain of 0.7%.
insurance company Brighthouse Financial (BHF) returned to its buy range after completing a cup handle with a buy point of 53.95.
Creates computer data storage Seagate technology (STX) stock rose 17% Thursday after its second -quarter fiscal earnings report fell short of analyst estimates. STX shares are close to their buy point of 117.77 after completing the double-cup pattern.
The company also indicated healthier growth and profitability are ahead. The company reported adjusted revenues of $ 2.41 per share on revenue of $ 3.12 billion. Analysts expect Seagate to report revenues of $ 2.36 per share on revenue of $ 3.11 billion. The results are for the quarter ended Dec. 31. Revenue climbed 18% from the previous year.
Chief Financial Officer Gianluca Romano raised the company’s long-term non-GAAP operating margin target in the range of 18% to 22%. That increased from the previous target of 15% to 20%.
Servicenow Chart Analysis
Elsewhere, the Innovator IBD 50 ETF (FFTY) faded from early gains to reverse 1.6% lower.
Service Today (NOW) gapped up 14.9% after the cloud software company beat revenue and sales expectations in Q4. Piper Sandler upgraded the stock to overweight from neutral following the report.
ServiceNow is in the early stages of building a new base.
Former Stock Market Leader Surrenders Breakout Gains
Silicon Motion Technology (SIMO) has fallen below its 50-day moving average after the chipmaker’s guidance for the current quarter was light. For the full year, Silicon Motion estimates sales of $ 1.11 billion to $ 1.2 billion. Analysts expect $ 1.08 billion in 2022 sales. The stock erased 18% gain from its 81.97 buy point, which was a sell signal.
Build chip-equipment Lam Research (LRCX) late Wednesday exceeded earnings expectations for the end of December this quarter, but sales missed estimates and the company’s guidance for the current quarter was weak. Shares fell more than 7% on heavy turnover at a three -month low.
Follow Michael Molinski on Twitter @IMmolinski
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