The Dow Jones Industrial Average extended its losses in today’s stock market as new comments from Federal Reserve Chair Jerome Powell sent indexes lower. Small-cap stocks led on the downside, while growth stocks in the growth-focused Innovator IBD 50 ETF (FFTY) lost nearly 3%.
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Stock Market Today
At around 1:30 p.m. ET, the Nasdaq was down around 1.6%, while the Dow Jones industrials lost 1.7%. The S&P 500 traded 1.6% lower and the small-cap Russell 2000 index shed over 2.3%. Data showed volume running higher on the Nasdaq and on the NYSE vs. the same time on Monday, a bearish sign.
The Dow and S&P 500 traded below Friday’s intraday lows, a key level of support. The market was rocked on Friday, after a new coronavirus variant known as omicron sparked fears of another global economic shutdown.
Stocks were pulled even lower Tuesday, as Federal Reserve chief Powell endorsed possibly speeding up the tapering of the central bank’s monthly asset purchases when they meet next month. Powell testified today before the Senate Committee on Banking, Housing, and Urban Affairs.
“At this point the economy is very strong and inflation pressures are high, and it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases, which we announced at the November meeting, perhaps a few months sooner,” Powell said.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34594.44 | -541.50 | -1.54 |
| S&P 500 | (0S&P5) | 4587.35 | -67.92 | -1.46 |
| Nasdaq | (0NDQC ) | 15552.86 | -229.97 | -1.46 |
| Russell 2000 | (IWM) | 217.71 | -5.00 | -2.25 |
| IBD 50 | (FFTY) | 47.31 | -1.17 | -2.41 |
Last Update: 1:42 PM ET 11/30/2021 |
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Investors moved out of travel industry stocks, sending airliners and other travel plays lower amid omicron fears. The airline transportation group declined 3.3%, while components American Airlines (AAL) and United Airlines (UAL) lost over 3% each. The leisure travel booking group, home to Expedia (EXPE), Airbnb (ABNB) and Booking Holdings (BKNG), fell over 4%.
However, other industries fared far worse Tuesday, including the retail department store and safety security groups, which lost 12% and 11%, respectively.
Dow Jones Stocks
As for Dow Jones stocks, Apple (AAPL) was the only blue chip in the positive, with a gain of over 2%. Shares are now extended from a recent 153.26 cup-with-handle breakout. The stock was higher after analysts from Counterpoint Research reported the company managed a 46% month-over-month gain in iPhone 13 sales for October.
Elsewhere, Salesforce.com (CRM) lost nearly 4% and led on the downside. The enterprise software company is set to report earnings after the close. Analysts expect EPS to fall 47% to 92 cents a share on revenue of $6.8 billion, or a 25% increase, year-over-year. Shares struggled to hold the 50-day line but remain above Friday’s intraday lows.
CRM stock fell back into the buy range of a 275.32 cup with handle entry after becoming extended.
American Express (AXP), Walgreens (WBA) and Dow (DOW) all traded more than 3% as well.
Growth Stocks To Watch
The growth-focused Innovator IBD 50 ETF held support at its 200-day line. IBD 50 stocks leading the downside included computer software companies ZoomInfo (ZI) and Confluent (CFLT), which lost around 10% and 7%, respectively.
ZoomInfo sold off in heavy volume below its 50-day line, a sign of weakness. Shares also fell in heavy volume, another red flag. Meanwhile, Confluent, a recent IPO stock, merely tested support at its 21-day line. Shares are well extended from a cup breakout in August. The cloud-based platform is not yet profitable, but the company shows promising year-over-year sales growth in recent quarters of 50% or higher.
On the upside, a few chip stocks and auto manufacturers bucked the trend and moved higher. Chip designer Alpha & Omega Semiconductor (AOSL) rose more than 4% as shares became extended from a recent cup breakout. XPeng (XPEV) also became extended from a recent consolidation breakout as shares gained 4.5% in above-average volume.
Follow Rachel Fox on Twitter at @rachelgfox more Dow Jones and stock market commentary.
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