Dow Crashes as Inflation Soars; Amazon pounces on Split; Apple Stock stumbles | Investor’s Business Daily

Dow Crashes as Inflation Soars;  Amazon pounces on Split;  Apple Stock stumbles |  Investor's Business Daily

The Dow Jones Industrial Average fell as inflation hit its highest level since 1982. Apple (AAPL) was among the worst blue chip performers. (AMZN) doped on stock split news as cybersecurity plays CrowdStrike (CRWD) jumped on earnings.


A few stocks, however, were making bullish moves. black stone minerals (BSM) and FCM (FCM) reached new heights. Eli Lily (THERE IS) showed impressive relative strength.

Stocks came under pressure amid soaring inflation and a breakdown in ceasefire talks between Ukraine and Russia.

Inflation concerns were stoked as the consumer price index (CPI) hit its highest level since the early 1980s. It jumped 7.9% in February from the same month a year ago, the largest annual increase since January 1982. The core CPI, which excludes food and energy, rose 6.4% from a year ago. This is the largest increase since August 1982.

Volume was lower on both the New York Stock Exchange and the Nasdaq according to preliminary data, a crumb of comfort for investors.

Nasdaq falls as growth stocks impress

The Nasdaq closed its lows for the day but remained the worst major index. He lost 1%. Marriott International (MAR) was among the biggest gainers on the Nasdaq, while Pinduo-duo (PDD) lagged the furthest, dropping 17.5%.

The S&P 500 also improved in early trading, closing down 0.4%. Halliburton (HAL) was the brightest with an 8.9% gain.

Overview of the US stock market today

Index symbol Price loss of profit % Change
Dow Jones (0DJIA) 33173.02 -113.23 -0.34
S&P500 (0S&P5) 4259.40 -18.48 -0.43
Nasdaq (0NDQC ) 13129.96 -125.59 -0.95
Russell 2000 (IWM) 199.90 -0.38 -0.19
INN 50 (FFTY) 37.57 +0.30 +0.80
Last Updated: 4:06 PM ET on 03/10/2022

The S&P sectors were mixed, with Energy and Consumer Discretionary faring the best. Consumer Staples and Technology were the worst laggards.

Small caps were also trying to fight off the bears, with the Russell 2000 down 0.4%.

Growth stocks bucked the trend as they gained ground. The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, rose 0.8%.

Dow falls as Apple stock lags

The Dow Jones Industrial Average attempted to fight back but still lost ground. It lost just over 100 points, falling 0.3%.

Apple stock was one of the index’s worst laggards, falling nearly 3%. AAPL stock has lost ground as it forms a new pattern. the the ideal buy point here is 183.04, according to MarketSmith Analysis.

walmart (WMT) gained 2%. It was followed by Chevron (CLC), which gained 1.9%.

Amazon Stock climbs on Split

Amazon shares got a boost after the company announced a 20-for-1 stock split.

But while the stock closed up 5.4%, it still remains anchored below its 50- and 200-day moving averages.

Stock splits are historically considered bullish, even though they create no value on their own.

In addition to the split, Amazon’s board authorized a $10 billion share buyback program. Both measures are subject to the approval of the company’s annual shareholders’ meeting.

Some of the biggest tech companies in the world recently split their shares. ParentGoogle Alphabet (GOOGL) announced a 20-to-1 stock split last month, while Apple stock split 4-to-1 in August 2020. You’re here (TSLA) also made a 5 to 1 that same month.

Cybersecurity stocks increase their profits

CrowdStrike soared following an impressive report. It managed to end the session near the day’s highs gaining 12.5%. EPS jumped 130% to 30 cents while revenue soared 63% to $431 million. It easily beat Wall Street views for a profit of 20 cents on revenue of $411 million.

Perhaps more importantly, the company’s outlook was strong. Management forecast EPS of $1.08 and revenue in the range of $2.13 billion to $2.16 billion for fiscal 2023. That was above analysts’ opinions.

The stock has work. While it has crossed its 50-day line, the 200-day moving average still remains far away.

Not all cybersecurity stocks enjoyed such good fortune amid the bearish market action.

Palo Alto Networks (PANW) lost 0.6% while Z-scale (SZ) fell 1.9%.

Market rally shows resilience, 3 stocks close to longs; Rivian Woes will ‘persist’

These stocks are making bullish moves

Oil and natural gas stocks Black Stone Minerals managed to end the session above a buy point of 12.85. The Houston-based firm has seen its RS lineup reach new heights, a good sign.

FMC Agricultural Chemicals stock broke off a consolidation pattern entry of 123.76 on its weekly chart.

Overall performance is solid, with its 93 EPS particularly noteworthy. Profits are currently accelerating.

Meanwhile, pharmaceutical stock Eli Lilly saw its relative strength line hit a new high, gaining 1.2%. The stock is trying to hit a base cup buy point of 284.

Eli Lilly was added to the Ranking Watch List as it continues to show impressive performance.

Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.


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