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Dow Jones Erases Gains, Indexes Move Off Intraday Highs; Apple Announces New Products At WWDC

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The major indexes held modest gains in afternoon trading while the Dow Jones erased its early gain and briefly turning negative. The index, however, managed to close around break-even. Investors turned their attention to the Dow Jones leader Apple (AAPL) as the tech giant Kicked off its annual Worldwide Developers Conference on Monday.




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Dow Jones Today

While the Dow Jones Industrial Average closed flat, the S&P 500 held a gain of 0.3%. The small-cap Russell 2000 was up 0.5%, leading the upside, while the Nasdaq composite rose 0.4%. Volume was higher on the Nasdaq and on the NYSE vs. the close to Friday, according to early data.

From a technical perspective, the Dow Jones and other major indexes are still holding support at the 21-day exponential moving average, after trading tightly above this line for the past week. This will be an important area to watch. Ideally, the indexes will be able to stay above this level and power higher to reclaim their 50-day lines as well.

US Stock Market Today Overview

Index Symbol Stories Gain / Loss % Change
Dow Jones (0DJIA) 32914.20 +14.50 +0.04
S&P 500 (0S & P5) 4121.32 +12.78 +0.31
Nasdaq (0NDQC) 12061.37 +48.64 +0.40
Russell 2000 (IWM) 187.92 +0.86 +0.46
IBD 50 (FFTY) 33.13 +0.10 +0.30
Last Update: 4:12 PM ET 6/6/2022

As for growth stocks, the Innovator IBD 50 ETF (FFTY) crept up another 0.3% as shares get closer to regaining support at their 50-day line for the first time since March.

Among the S&P 500 sectors, consumer discretionary and materials stocks outperformed while the real estate sector lagged, but was only down slightly. The technology sector initially outperformed and traded higher but erased gains in the afternoon.

The 10-year US Treasury note increased 8 basis points to 3.03%, which is significant since the benchmark has not closed above 3% since May 11.

Apple Announces New Products At WWDC

Dow Jones leader Apple announced several important new products and software updates at the start of its WWDC conference on Monday. During the event keynote, which began at 1 pm ET, Apple demonstrated its latest software for the iPhone, iOS 16. It also revealed Apple Pay Later, its buy-now-pay-later product which initially sent shares of competitor Affirm (AFRM) down over 5% in notably heavy volume.

Apple also announced its new M2 chip, the 13-inch MacBook Pro with M2, the new MacBook Air with M2, macOS Ventura for Macs and more. Shares of Apple closed 0.5% higher on Monday but erased earlier gains. The stock is attempting to regain support at its 21-day moving average after losing support at this area amid the recent sell-off.

The Technology Select Sector SPDR ETF (XLK) initially gained as much as 0.6%, before fading in afternoon trading. The ETF closed at break-even on Monday.

Chemicals Stocks Outside Of The Dow Jones Break Out

Outside the Dow Jones industrials, two chemicals stocks in the MarketSmith Growth 250 index scored breakouts on Monday. Ashland Global (ASH) broke out above a 110.84 entry as its RS line notched a new high. But shares faded in afternoon trading. The stock still rose nearly 3% in heavy volume.

Elsewhere, Celanese (CE) also scored a breakout and closed up more than 1.5%. The chemicals firm works with a wide variety of key chemical markets from aerospace to medical and pharmaceuticals.

Shares of Celanese, which just reclaimed their 200-day line in recent sessions, broke out above a 159.32 cup-with-handle entry. Volume was low in the breakout, which could be a cause for concern. But the RS line looked strong as it moved to new highs on Monday.

As for breakouts holding above their buy points in afternoon trading, shares of Chinese solar energy stock Jinko Solar (JKS) traded above a 66.47 entry off a six-month long consolidation. The stock remained within its 5% buy zone while its RS line hit a new high.

Follow Rachel Fox on Twitter at@IBD_RFox for more Dow Jones and stock market commentary.

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