The stock market reverses the upside slightly while retail, metals stocks stand out

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The stock market reverses the upside slightly while retail, metals stocks stand out

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The stock market reversed higher on Thursday morning, a small increase from its big two-day rally. Some retail, metals and energy stocks showed renewed strength.




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The S&P 500 opened 0.5% lower but was up 0.2%. The composite Nasdaq also canceled the first losses and was up 0.3%. The Dow Jones Industrial Average was almost flat.

Volume fell on the NYSE and Nasdaq from the same time on Wednesday.

Switch (SWCH), a data center provider, exploded from a cup-handle base in heavy trading. The shares are in the buy range from the point of purchase of 27.85 to 29.24. The relative line of strength is almost high. Switch has a decent Composite Rating of 88, despite gains having declined over the past three quarters.

Retailers rose after earnings reports.

Overview of the US stock market today

Index symbol Price Gain / Loss % change
Dow Jones (0DJIA) 34068.37 +5.27 +0.02
S & P500 (0S & P5) 4364.46 +6.60 +0.15
Nasdaq (0NDQC) 13473.05 +36.50 +0.27
Russel 2000 (IWM) 202.71 +0.77 +0.38
IBD 50 (FFTY) 37.88 +0.35 +0.93
Last updated: 10:06 AM ET 3/17/2022

General Dollar (DG) was up 1.6% after the discount chain met profit estimates with earnings of $ 2.57 per share and revenues of $ 8.7 billion. Sales in the same store fell 1.4%, below views. The stock is forming a cup base with a buy point of 240.24.

Williams Sonoma (WSM) jumped more than 8% despite a mixed holiday quarter report. Earnings of $ 5.41 per share exceeded expectations, but sales of $ 2.5 billion missed estimates. Williams-Sonoma also increased its quarterly dividend by 10%, to 78 cents per share, and increased its share buyback to $ 1.5 billion from the remaining $ 700 million in a previous program.

IBD 50 outperforms the stock market

The Innovator IBD 50 ETF (FFTY) outperformed with a 0.7% rise led by energy, metallurgical and agricultural stocks.

Commercial metals (CMC) was down 1.1% after the company reported better-than-expected February quarter earnings and revenues earlier today. The achievements of the steel and metal products producer came as steel producers benefited from stable prices due to the Russia-Ukraine war. The stock is extended after exiting a cup-like base with a buy point of 38.82 on Feb.28.

Asian equities extended their rally after Chinese economic officials offered encouraging comments on Wednesday.

Hong Kong’s Hang Seng Index rose 7% for a two-day surge of 16.8%, the best two-day rally in the index since February 1998, according to Dow Jones Market Data. The Shanghai Composite was up 1.4%, taking its two-day rally to 4.9%. These are the best two days since July 2020. The Tokyo Nikkei 225 jumped 3.5% on Thursday.

But many Chinese stocks fell in US trading. KraneShares China Internet ETF (KWEB) lost more than 6% and iShares China Big Cap ETF (FXI) fell more than 3%.

Ali Baba (BABA), Baidu (BIDU), JD.com (JD), Vip shop (VIPS) and Li-Auto (LI) slide from 4% to 8%.

The stock market accepts the start of housing, jobless claims

In economic reports, the start of housing jumped 6.8% in February to 1.769 million at an annualized rate. Economists had expected 1.7 million, according to Econoday. The February issue was the highest since summer 2006. Worker absenteeism linked to the pandemic has decreased and January’s extreme cold spell is over, BMO Capital Markets economist Priscilla Thiagamoorthy noted.

Building permits fell 1.9% to 1,859 million annualized, the first decline in five months.

“Despite a series of headwinds, including rising material costs and supply shortages, we expect residential construction to remain healthy this year. Housing demand remains strong, even with higher mortgage rates. and construction activity is supported by the shortage of previously available homes in the resale market, “he added.

Jobseeker’s claims dropped to 214,000 last week from 229,000. Economists had expected 221,000 according to Econoday. The latest figure is below the 2019 average of 218,000 as the labor market continues to shrink, Thiagamoorthy said.

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