The Dow Jones Industrial Average fell in today’s market after paring earlier gains. Over the past hour, the major indexes sold off from their highs of the day. Both the S&P 500 and Dow traded in the negative while the Nasdaq surrendered early small gains but traded near break-even.
Dow Jones In Stock Market Today
At around 3 p.m. ET, the Nasdaq composite traded down roughly 0.1%. The S&P 500 and the Dow Jones industrials held a loss of slightly more than 0.1% while the small-cap Russell 2000 index fell more than 0.5% after paring earlier gains. Volume was running sharply higher on both the NYSE and the Nasdaq vs. the same time on Monday.
Stocks fluctuated between small gains and small losses on Tuesday after the Conference Board’s consumer confidence index dipped to 117.2 in May from 117.5 in April. However, on the positive side, April’s reading was the highest since February 2020, before the start of Covid-19 lockdowns.
Meanwhile, long-term U.S. Treasury bond yields continued to decline, with the yield on the benchmark 10-year note hovering below 1.6%. But the recent drop in cryptocurrency prices slowed as Bitcoin steadied just below $38,000 during afternoon trading.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) rose a modest 0.3% Tuesday. The ETF is still below its 50-day line. Stocks leading the upside included Cricut (CRCT) and 360 DigiTech (QFIN), with gains of over 12% and 6%, respectively.
As far as IBD’s 197 industry groups, beverages, computer software and residential and commercial building stocks led the upside while oil and gas stocks underperformed.
Stocks In The News
IBD Sector Leader stock LGI Homes (LGIH) is in a buy zone as it rebounds from the 10-week moving average. According to MarketSmith chart analysis, the ideal buy point is 166.17. The positive reversal comes amid a new report showing home prices across the country spiked at the fastest rate in more than seven years.
The stock got some air time in Tuesday’s IBD Live show.
The S&P CoreLogic Case-Shiller 20-city home price index was up 13.3% in March compared to the previous year, its biggest gain since December 2013. Home prices have been buoyed amid low interest rates and high consumer demand, especially among millennials starting families.
Elsewhere, Amazon (AMZN) slipped amid news that the firm is being sued by Washington, D.C., Attorney General Karl Racine. But the stock pared earlier losses and was only down less than 0.1% midday Tuesday. Shares held solid support around the 50-day moving average.
Racine said he is suing the e-commerce giant on antitrust grounds. The lawsuit claims the firm’s practices have raised prices for consumers and suppressed innovation. It also alleges Amazon illegally maintained monopoly power through pricing contracts with third-party sellers.
Amazon said in a statement the DC Attorney General is wrong, and that “sellers set their own prices for the products they offer in our store.”