Title: Stock Market Weakens on Second Trading Day of the Year
Subtitle: Dow Jones hits record high before falling 0.4%
January 5, 20XX – McCreary County Record
Major indexes displayed signs of weakness during early afternoon trades on the second trading day of the year. The Dow Jones Industrial Average experienced a decline of 0.4%, giving up its earlier gains after reaching a record high on Tuesday. This drop comes ahead of the release of Federal Reserve minutes later in the day.
The broader market also witnessed a dip, with the S&P 500 falling by 0.5% and the Nasdaq lagging behind with an 0.8% decline, risking a break of support at the 21-day exponential moving average.
Trading volume was mixed, as the New York Stock Exchange (NYSE) saw higher volumes while the Nasdaq experienced lower volumes compared to the previous day. Decliners outnumbered advancers by a ratio of nearly 3-to-1 on both main exchanges.
In addition to the major indexes, other key sectors faced significant setbacks. The small-cap Russell 2000 plunged over 2%, and the Innovator IBD 50 ETF (FFTY) also encountered weak performance with a 2.1% drop.
Meanwhile, the yield on the benchmark 10-year Treasury note remained unchanged at 3.93%.
Economic data released today revealed that manufacturing improved to 47.4 in December, surpassing the consensus estimate of 47.2. However, this still indicates a slowdown in activity.
The Job Openings and Labor Turnover Survey (JOLTS) for November came in slightly higher than expected at 8.79 million.
Prior to the release of the economic data, the major stock indexes were already showing declines, which were further exacerbated after the reports became public.
Investors are eagerly awaiting the Federal Reserve minutes from the December meeting, scheduled to be released at 2 p.m. ET.
Among individual stocks, heavyweights such as Caterpillar (CAT) and Intel (INTC) witnessed declines. Additionally, Apple (AAPL) slipped below its 50-day moving average, while Microsoft (MSFT) managed to hold above its 50-day line of support.
In the health care sector, UnitedHealth (UNH) and Merck (MRK) gained ground as they continued to consolidate their positions. Other health care stocks like Eli Lilly (LLY), Cardinal Health (CAH), McKesson (MCK), and Vertex Pharmaceuticals (VRTX) performed well within the S&P 500.
Leading fund manager Cathie Wood selected Roku (ROKU), Rocket Lab (RKLB), and Recursion Pharmaceuticals (RXRX) as her top picks for the ARK Invest portfolios in the new year.
Several significant stocks, including Nvidia (NVDA) and Tesla (TSLA), are testing support at the 50-day line. Meanwhile, Google parent Alphabet (GOOGL) experienced a rise and is edging closer to a buy point. Meta Platforms (META) is preparing for a third test of its 50-day line.
Amazon.com (AMZN) retreated to a buy zone but remains above its essential support level.
Outside of the Dow Jones, Lamb Weston (LW) is nearing a buy point in a cup base, with earnings set to be announced Thursday before the market opens.
In overnight trading, futures indicated a rise after the market’s losses, while a single stock successfully cleared a significant buy point.
Overall, the stock market experienced a lackluster trading session on the second trading day of the year, with the Dow Jones falling from its record high and other major indexes displaying weakness. Investors are closely watching the Federal Reserve minutes release for further insights and possible market reaction.
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