Technology stocks turned higher in afternoon trading Wednesday after the Federal Reserve’s policy statement penciled in three interest hikes in 2022. The Dow Jones Industrial Average was up 0.4%, with Cisco Systems (CSCO) leading the way, nearly 3%. Amid a lot of selling in the technology sector, Cisco stock is acting well as it holds above key support levels. It’s also trading near a 58.73 buy point.
X
As expected, the Fed quickened the pace of its tapering. Asset purchases will now decrease by $30 billion per month and likely come to an end in March.
The Dow Jones is currently testing support at its 50-day moving average, while the S&P 500 holds above its 50-day line. The S&P 500 was up 0.5%, but Eli Lilly (LLY), Fortinet (FTNT) and Pfizer (PFE) outperformed in the benchmark index. Eli Lilly stock jumped 9% and cleared a 271.21 entry, helped by bullish earnings guidance.
Procter & Gamble (PG) and UnitedHealth Group (UNH) also outperformed in the Dow Jones today, but both stocks are too far extended to consider buying. P&G stock is in a large group of consumer staple stocks outperforming in the current market as growth stocks sell off sharply.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35691.90 | +147.72 | +0.42 |
| S&P 500 | (0S&P5) | 4656.40 | +22.31 | +0.48 |
| Nasdaq | (0NDQC ) | 15281.83 | +44.19 | +0.29 |
| Russell 2000 | (IWM) | 215.24 | +1.06 | +0.49 |
| IBD 50 | (FFTY) | 43.13 | -0.18 | -0.42 |
Last Update: 2:16 PM ET 12/15/2021 | ||||
The 10-year Treasury yield rose 3 basis points early to 1.47% but backed off highs to 1.45%.
Outside the Dow Jones
After gapping below its 50-day line Tuesday, the Nasdaq composite was up 0.3%. The Nasdaq 100 made a nice stand at its 50-day line Tuesday. The Invesco QQQ Trust (QQQ) added 0.3%, led by a strong showing from Leaderboard stock Advanced Micro Devices (AMD), which rallied 2.5%
Nasdaq 100 component Cadence Design Systems (CDNS) rebounded after finding support at its 50-day line Tuesday. Shares were up 1.5%.
Top performing ETFs Tuesday included the Utilities Select Sector SPDR Fund (XLU) and the Health Care Select Sector SPDR Fund (XLV), up 1.1% and 0.9%, respectively. Real estate and consumer staples stocks also outperformed.
Inside the MarketSmith Growth 250, contract research organization Icon (ICLR) broke out over a trend line, rising around 3%. The stock remains in a 12-week consolidation.
Energy Stocks Hit
Top-rated oil and gas producers fell hard, with names like Denbury (DEN), Magnolia Oil & Gas (MGY) and Devon Energy (DVN) down at least 4%. Benchmark WTI crude oil futures edged higher to $70.90 a barrel.
The Innovator IBD 50 ETF (FFTY) turned slightly higher after falling nearly 2% intraday. Arista Networks (ANET) scored a new high in the IBD 50, but Roblox (RBLX) plunged nearly 12% after the company issued average bookings per daily active user guidance, which is expected to be down 8%-9% year over year.
IBD put the stock market in a correction on Dec. 3, due to bearish price action in leading growth stocks. Meanwhile, the Nasdaq’s advance-decline line has been trending lower since early November.
Today is the eighth day of a rally attempt for the Nasdaq composite and S&P 500. A follow-through day, or a big percentage gain in higher volume by the indexes, would confirm a new uptrend and give the green light to start buying stocks again. But it could take a while longer for new setups to emerge. The recent selling in the stock market has resulted in a lot of damaged stock charts.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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