The Dow Jones Industrial Average fell as inflation reached its highest level since 1982. Apple (AAPL) was among the worst blue chip performers. Amazon.com (AMZN) spiked on stock split news while cybersecurity play CrowdStrike (CRWD) jumped on earnings.
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A few stocks were making bullish moves, though. Black Stone Minerals (BSM) and FMC (FMC) climbed to new highs. Eli Lilly (LLY) was showing impressive relative strength.
Stocks came under pressure amid spiraling inflation and a breakdown in Ukraine-Russia cease-fire talks.
Inflation worries were stoked as the consumer price index (CPI) came in at the highest level since the early 1980s. It jumped 7.9% in February vs. the same month a year ago, the biggest annual gain since January 1982. The core CPI, which excludes food and energy, was up 6.4% on a year ago. This was the highest increase since August 1982.
Volume was lower on both the New York Stock Exchange and the Nasdaq according to preliminary data, a crumb of comfort for investors.
Nasdaq Falls As Growth Stocks Impress
The Nasdaq closed off its lows for the day but was still the worst major index. It gave up 1%. Marriott International (MAR) was among the biggest Nasdaq gainers, while Pinduoduo (PDD) lagged worst, with a drop of 17.5%.
The S&P 500 also improved on early session action, closing down 0.4%. Halliburton (HAL) was shining brightest with a gain of 8.9%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33173.02 | -113.23 | -0.34 |
| S&P 500 | (0S&P5) | 4259.40 | -18.48 | -0.43 |
| Nasdaq | (0NDQC ) | 13129.96 | -125.59 | -0.95 |
| Russell 2000 | (IWM) | 199.90 | -0.38 | -0.19 |
| IBD 50 | (FFTY) | 37.57 | +0.30 | +0.80 |
Last Update: 4:06 PM ET 3/10/2022 |
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The S&P sectors were mixed, with energy and consumer discretionary faring best. Consumer staples and technology were the worst laggards.
Small caps were also trying to fight off the bears, with the Russell 2000 down 0.4%.
Growth stocks bucked the trend by making up some ground. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rose 0.8%.
Dow Jones Tumbles As Apple Stock Lags
The Dow Jones Industrial Average tried to fight back but still gave up ground. It surrendered just over 100 points as it fell 0.3%.
Apple stock was one of the worst laggards on the index, falling nearly 3%. AAPL stock lost ground as it forms a new pattern. The ideal buy point here is 183.04, according to MarketSmith analysis.
Walmart (WMT) gained 2%. It was followed by Chevron (CVX), which gained 1.9%.
Amazon Stock Climbs On Split
Amazon stock was given a boost after the firm announced a 20-for-1 stock split.
But while the stock closed up 5.4%, it still remains rooted below its 50-day and 200-day moving averages.
Stock splits are historically seen as bullish, even though they do not create any value in and of themselves.
In addition to the split, the Amazon board authorized a $10 billion stock buyback program. Both measures are subject to approval at the firm’s annual shareholder meeting.
Some of the world’s biggest tech companies have been splitting their stock of late. Google parent Alphabet (GOOGL) announced a 20-for-1 stock split last month, while Apple stock was split 4-to-1 in August 2020. Tesla (TSLA) also made a 5-for-1 that same month.
Cybersecurity Stock Jumps On Earnings
CrowdStrike soared following an impressive report. It managed to end the session near highs for the day as it gained 12.5%. EPS popped 130% to 30 cents while revenue climbed 63% to $431 million. This handily beat Wall Street views for earnings of 20 cents on revenue of $411 million.
Perhaps even more importantly, the company’s outlook was strong. Management forecast EPS of $1.08 and revenue in a range of $2.13 billion to $2.16 billion in fiscal 2023. This was above analyst views.
The stock has work to do. While it climbed above its 50-day line, the 200-day moving average remains a long way off.
Not all cybersecurity stocks were enjoying such good fortunes amid the bearish market action.
Palo Alto Networks (PANW) lost 0.6% while Zscaler (ZS) dipped 1.9%.
These Stocks Make Bullish Moves
Oil and natural gas stock Black Stone Minerals managed to end the session above a 12.85 buy point. The Houston-based firm saw its RS line reach new heights, a good sign.
Agricultural chemicals stock FMC moved clear of a consolidation pattern entry of 123.76 on its weekly chart.
Overall performance is strong, with its EPS Rating of 93 particularly noteworthy. Profits are currently accelerating.
Meanwhile, pharma stock Eli Lilly saw its relative strength line hit a new high as it gained 1.2%. The stock is trying to reach a cup base buy point of 284.
Eli Lilly has been added to the Leaderboard Watchlist as it continues to show impressive performance.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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