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Dow Jones Falls As JPMorgan Slides Over 6% On Earnings; Nasdaq Trades Near Break-Even

The Dow Jones Industrial Average traded lower in today’s stock market while the Nasdaq drifted off morning highs but held near break-even. Meanwhile, crude oil prices and the 10-year Treasury bond yield moved higher.




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Dow Jones In The Stock Market Today

At around 3 p.m. ET, the Dow Jones industrials were trading down 0.8%, leading the market on the downside. The Nasdaq composite was trading near break-even. The S&P 500 declined roughly 0.3%, while the Russell 2000 small-cap index fell 0.5% after paring earlier losses. Volume was running higher on the Nasdaq and on the NYSE vs. the same time on Thursday.

The Dow Jones was hindered by heavy losses in JPMorgan (JPM), which declined over 6.5%. Shares gapped below the 21-day, 50-day and 200-day lines despite reporting better-than-expected fourth-quarter earnings early Friday.

JPMorgan earnings per share fell to $3.33, while revenue edged up to $30.35 billion. Analysts expected JPMorgan to report earnings of $3.01 a share on sales of $29.71 billion. Despite beating expectations, JPMorgan stock gapped down in heavy volume. Shares were forming a flat-base buy point of 173.06, according to MarketSmith, but now that pattern is uncertain.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35809.15 -304.47 -0.84
S&P 500 (0S&P5) 4644.82 -14.21 -0.30
Nasdaq (0NDQC ) 14813.09 +6.28 +0.04
Russell 2000 (IWM) 213.00 -1.01 -0.47
IBD 50 (FFTY) 42.09 -0.02 -0.05
Last Update: 3:06 PM ET 1/14/2022

Meanwhile, other bank stocks including Wells Fargo (WFC) also reported better-than-expected earnings early Friday. WFC stock, however, escaped the market’s losses and rose over 3.3%. Shares of the money center are currently extended from a 52.76 flat-base buy point.

Next week, a slew of banks and other financial companies are reporting fourth-quarter results. Financials, one of the few sectors up this month, declined on Friday as the Financial Select Sector SPDR (XLF) ETF gapped down to a 1.5% loss. Meanwhile, the 10-year Treasury bond yield rose to 1.77%, after a gain of well over 20 basis points last week.

Dow Jones stocks leading the upside on Friday included Chevron (CVX), which gained over 1% alongside rising crude oil prices. Energy is another sector outperforming this month. The Energy Select Sector SPDR (XLE) ETF rose 1.7% on Friday.

Stocks Making Notable Moves

The Innovator IBD 50 ETF (FFTY) traded close to break-even on Friday. Growth stocks have suffered in recent weeks as bond yields rise. Rising yields tend to make riskier, high-growth opportunities less appealing for investors.

But Mosaic (MOS), a leading growth stock in the MarketSmith Growth 250 index, outperformed on Friday and broke out from a cup with a 43.34 buy point. Shares rose over 3.3% in today’s market and remain up over 7% for the week. The stock sports an RS line hitting new highs on the weekly chart, a bullish sign.

Mosaic is part of the agriculture chemicals industry group which ranks a strong No. 18 of the 197 groups IBD measures. Elsewhere, chip stocks showed strength as Lam Research (LRCX), Ultra Clean (UCTT), Applied Materials (AMAT) and KLA (KLAC) rallied more than 3% each.

Lam Research and Applied Materials are both part of the semiconductor equipment manufacturers group, which ranks No. 10 among IBD’s industry groups.

Lam Research, up over 5%, is extended from a 673.90 buy point of a long consolidation. The stock reclaimed its 21-day line on Thursday but is hitting some slight resistance near the Jan. 4 high.

Applied Materials rose over 4.7%. Shares are still in a buy zone from the recent 159.10 flat-base entry. Investors should note the stock already triggered the 7%-8% loss-cutting sell rule on Monday from the initial breakout.

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