The Dow Jones Industrial Average was struggling to stay positive even though Apple (AAPL) was among the gainers. Nike (NKE) impressed most out of the blue chips. Tesla (TSLA) saw a move higher stall despite a bullish analyst call.
Meanwhile, a number of energy stocks passed buy points as the price of oil gushed, although gains were fading. PDC Energy (PDCE), Whiting Petroleum (WLL) and Murphy Oil (MUR) all tested entries.
Volume was lower on both the Nasdaq and the New York Stock Exchange according to preliminary data.
Meanwhile, the yield on the benchmark 10-year Treasury note rose 11 basis points to 2.86%. West Texas Intermediate crude fell late to just under $ 115 per barrel.
The US Consumer Confidence Index fell 2.2 points in May to a three-month low of 106.94. This was actually a good result as economists expected it to drop more. “We can never underestimate the US consumer,” said Jennifer Lee, senior economist at BMO Capital Markets.
Nasdaq Rally Fails As Growth Stocks Tumble
The Nasdaq, like other indexes, saw gains fade as it closed down 0.4%. Illumina (ILMN) lagged here as it dropped more than 7%.
The S&P 500 also fell back into negative territory as it fell 0.6%. Albemarle (ALB) was a laggard, falling 5%.
US Stock Market Today Overview
|Index||Symbol||Stories||Gain / Loss||% Change|
|S&P 500||(0S & P5)||4132.47||-25.77||-0.62|
Last Update: 4:06 PM ET 5/31/2022
The S&P sectors were mainly negative. Consumer discretionary and communication services were the only areas in the green. Materials and energy were the worst laggards.
Small-cap investors were forced lower, with the Russell 2000 shedding 1.3%.
But it was growth stocks that were given the stiffest spanking by the bears. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 1.8%.
Dow Jones Today: Apple Stock Reverses As Nike Leads
The Dow Jones Industrial Average dropped more than 200 points, or 0.7%.
Apple stock saw a rally attempt failed as it closed 0.5% lower. AAPL stock remains below its major moving averages but has now cleared the 21-day exponential moving average, according to MarketSmith.
Nike stock was the top performer on the Dow Jones today. The sportswear giant is closing in on its 50-day moving average after posting a gain of 2.5%. Salesforce (CRM) was the worst Dow laggard as it dipped 2.9%.
Market Rally Holds Key Levels; Don’t Fall For This Trap
Tesla Stock Falls Despite Bullish Call
Tesla stock has had a poor 2022 so far after a stellar run last year.
The EV stock tried to reverse higher but stalled. It closed down 0.2%, though it was well off lows for the day.
The move came in above-average volume. Tesla is fighting to retake its 21-day exponential moving average.
It fell despite Mizuho reiterating its buy rating on TSLA stock. The firm said Tesla could bounce back as the year goes on. It said it believes a “potentially stronger September quarter / December quarter rebound is possible with improved supply chains and Berlin ramping” up production.
Tesla stock remains miles off its current consolidation entry of 1,208.10, MarketSmith analysis shows.
Oil Stocks Test Buy Points
Oil stocks initially moved higher after the European Union moved to ban seaborne oil from Russia, although it is granting a temporary exemption for pipeline imports. Gains faded late, though.
Oil prices were off highs after the Wall Street Journal reported some OPEC members are exploring the idea of suspending Russia’s participation in an oil production deal.
PDC Energy has slipped back under its buy zone after an earlier moving past a cup-base entry of 79.49. The relative strength line hit a new high, which is a bullish indicator.
Whiting Petroleum dipped back below its consolidation entry of 90.99. The RS line also hit a new high here. Big money is a key backer for this stock, with 66% of shares currently being held by funds.
Murphy Oil also reversed lower after moving above a cup entry of 44.73. Institutional sentiment is strong here, with the stock’s Accumulation / Distribution Rating coming in at B-.
These oil stocks are worth watching to see if they can reclaim their buy points.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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