May 24, 2024

The Dow Jones Industrial Average and other major stock indexes traded about 1% lower early Friday. JPMorgan (JPM) and Intel (INTC) were down sharply in the Dow Jones. But the selling in the stock market today was most concentrated in the Nasdaq composite, with Nvidia (NVDA) under early pressure after two days of strong gains.


West Texas Intermediate crude oil futures spiked more than 2% to just over $87 a barrel. Oil has been strengthening amid tensions in the Middle East and fears that the Iran-Hamas conflict could escalate. The Wall Street Journal reported on Thursday that Israel expects an attack from Iran as soon as today.

Sellers knocked Intel (INTC) and Advanced Micro Devices (AMD) lower after The Wall Street Journal reported that China earlier this year told its largest telecom carriers to phase out foreign chips.

Nvidia was down nearly 2% in light volume. The AI juggernaut is showing a classic test of its 10-week moving average after a breakout from a base all the way back in January.

Earnings reports from JPMorgan, Wells Fargo (WFC) and Citigroup (C) were also in focus. JPMorgan gapped down and is below its 50-day moving average.

Stock Market Today

The Dow Jones industrials, S&P 500, Nasdaq and Russell 2000 small-cap index showed losses ranging from 0.8% to 1% about one hour into Friday’s session.

The Nasdaq composite was down 0.9% after a strong rally Thursday in lower volume. Signs of institutional selling have been increasing on the Nasdaq. The index now shows seven higher-volume declines since March 8. Three of those were at least 1%.

The Nasdaq 100 was down 1%, Besides AMD and Intel, Micron Technology (MU), ASML (ASML) and Broadcom (AVGO) also lagged in the Nasdaq 100 with losses of 2% or more.

Breadth was more than 2-to-1 negative on the Nasdaq and NYSE. Volume on the NYSE was quite a bit higher compared to the same time Thursday. Nasdaq volume was slightly lower.

See Which Stocks Are In The Leaderboard Model Portfolio

Arista Networks (ANET) gapped below its 50-day moving average and slumped 5% after Rosenblatt downgraded the stock to sell.

Newmont Mining (NEM) and Occidental Petroleum (OXY) outperformed early in the S&P 500.

CCJ Follows Through

Cameco (CCJ) extended gains in the stock market today after the uranium miner cleared a cup-with-handle base Thursday. It’s in the 5% buy zone from a 51.43 entry to 54.

Cameco is a member of the MarketSurge Growth 250. CCJ joined Leaderboard Thursday. Headed into Friday, the model portfolio was just under 70% invested.

Alamos Gold (AGI) and Agnico-Eagle Mines (AEM) also outperformed with gains of 2.5% to 3%. Gold futures rose another 2% to just over $2,4o0 an ounce.

The stock market continues to perform well despite a big jump in the 10-year Treasury yield this week. Early Friday, the yield was trading around 4.50%, down 7 basis points. After rising 17 basis points last week, the yield is up another 13 basis points so far this week. Interest rates have been heading higher after another hot reading on consumer prices earlier in the week.

According to CME Group, federal funds futures traders think there’s a 50/50 chance that the first rate cut will come at the July meeting. Rate cut expectations have been dialed back quite a bit amid signs of sticky inflation.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.


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