The Dow Jones Industrial Average fell and yields spiked after a senior Federal Reserve official spoke out on interest rates. Bed Bath & Beyond (BBBY) cratered after Ryan Cohen completed a stock sale with the likes of AMC Entertainment (AMC) also getting slammed. Coinbase (COIN) and Riot Blockchain (RIOT) collapsed as Bitcoin plunged.
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A few notable stocks were still showing strength despite the negative action. Energy stock Equinor (EQNR) and Sprouts Farmers Market (SFM) are both near buy points
Volume was mixed, falling on the Nasdaq but higher on the New York Stock Exchange vs. the same time on Thursday.
The yield on the benchmark 10-year Treasury note jumped 10 basis points to 2.98%. West Texas Intermediate crude oil inched higher to nearly $91 per barrel.
Stocks continued to struggle after Federal Reserve Bank of St. Louis President James Bullard spoke out on interest rates. He is open to the idea of another big hike when the Federal Reserve Open Market Committee meet meets, The Wall Street Journal reported.
“We should continue to move expeditiously to a level of the policy rate that will put significant downward pressure on inflation,” Bullard said. “I don’t really see why you want to drag out interest rate increases into next year.”
Nasdaq Plunges As Small Caps Dive
The Nasdaq was faring worst out of the major indexes as it plunged nearly 2%. EV stock Lucid Motor (LCID) was a notable laggard: It fell over 7%.
The S&P 500 was also hit, dipping more than 1%. Etsy (ETSY) lagged here as it fell nearly 7%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33656.27 | -342.77 | -1.01 |
| S&P 500 | (0S&P5) | 4221.79 | -61.95 | -1.45 |
| Nasdaq | (0NDQC ) | 12682.91 | -282.43 | -2.18 |
| Russell 2000 | (IWM) | 194.25 | -4.67 | -2.35 |
| IBD 50 | (FFTY) | 28.99 | -0.60 | -2.03 |
Last Update: 3:14 PM ET 8/19/2022 |
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The S&P 500 sectors were mostly red. Energy and health were the only positive areas. Financials and consumer discretionary were the worst laggards.
Bears mauled small caps, with the Russell 2000 sliding more than 2%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fared a bit better as it dipped less than 2%.
Dow Jones Today: Boeing Stock Dives
The Dow Jones Industrial Average was also getting caned amid the negative action. It fell almost 1% and looks set to see its weekly winning streak come to an end.
Boeing (BA) was struggling most on the Dow Jones today. It fell more than 3%. The stock is seeking support at its 21-day exponential moving average, according to MarketSmith analysis.
On the upside, Johnson & Johnson (JNJ) was faring best. J&J stock gained more than 1%.
BBBY Stock Combusts On Ryan Cohen Sale
Meme stock Bed Bath And Beyond saw its losses intensify. It was trading near lows for the day after falling about 40% in massive volume.
It was given a shellacking on news that GameStop (GME) Chairman Ryan Cohen’s RC Ventures has sold all its stock in the company. It had emerged yesterday that the activist investor was looking to jettison his holdings.
BBBY stock had already endured a torrid Thursday but has now gapped below its downward-sloping 200-day moving average. This is a sell signal.
It comes after it surged as much as 560% from a July 27 low of 4.54 to Wednesday’s high at 30.
AMC stock was down more than 6% while GameStop, the original meme stock, fell about 7%.
Coinbase Stock, RIOT Plunge As Bitcoin Dives
Coinbase was near lows for the day as it plunged almost 11%. Volume was lighter, though this was a crumb of comfort.
The stock, which slashed its full-year forecast last week, has knifed below the 21-day exponential moving average. It now looks set for a test of the 50-day line. COIN shares are down more than 70% since the start of 2022.
Bitcoin was struggling badly Friday, falling to just above the $21,000 mark after giving up 8% in the past 24 hours, according to CoinDesk.
Other cryptocurrency plays also fell sharply. The Grayscale Bitcoin Trust (GBTC) fell around 8% while Bitcoin mining play Riot Blockchain (RIOT) plunged almost 10%.
What To Do As Market Pulls Back; Warren Buffett Stock Breaks Out
Outside Dow Jones: These 2 Stocks Show Strength
With the market reversing, now is a good time to find stocks near entries showing relative strength.
Equinor sits near a buy point of 39.25, MarketSmith analysis shows. Also, 38.80 is a viable buy point. The relative strength line is moving higher, and a further spike in energy prices could send it soaring once again.
It has been on a tremendous run dating back to late 2021. Overall performance is very solid indeed, with EQNR stock holding a near-perfect Composite Rating of 98.
Equinor, the state-owned Norwegian energy company, is a key supplier for Europe, which is no longer able to depend on Russia as a major natural gas supplier.
Sprouts Farmers Market also saw its RS line spike as it closes in on a cup-with-handle buy point. The entry here is 31.59.
All-around performance is strong here. The supermarket play is also in the top 6% of stocks in terms of price performance over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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