The Dow Jones Industrial Average fell late as growth stocks got spanked. Bank of America (BAC) passed a buy point as financial stocks flourished. Bitcoin was diving again, hitting Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC). Discovery (DISCA) popped on an upgrade but New York Times (NYT) plunged.
The stock market struggled following a disappointing jobs report. The Labor Department reported U.S. employers added 199,000 jobs in December. That was about half what economists polled by Econoday had expected. It was also a big decline from the 249,000 jobs created in November.
The unemployment rate dropped to 3.9% from 4.2% the prior month. Economists had forecast 4.1%.
Nasdaq Dives, Growth Stocks Get Walloped
The tech heavy Nasdaq the worst hit major average, falling 1%. China e-commerce play Pinduoduo (PDD) was doing well again, closing up more than 7%. Payments stock MercadoLibre (MELI) lagged, falling 6.2%.
The S&P 500 also fell again, closing down 0.4%. Housing play D.R. Horton (DHI) lagged most, falling 6.2%. Homebuilder stocks in general struggled. The SPDR S&P Homebuilders ETF (XHB) surrendered 3.4%.
U.S. Stock Market Today Overview
Last Update: 4:16 PM ET 1/7/2022
A majority of the S&P 500 sectors closed lower. Energy and financials performed best while technology and consumer discretionary were the worst laggards.
Small caps were also getting mauled by the bears. The Russell 2000 was down 1.2%.
But it was growth stocks that were given the worst thrashing. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 2.7%.
Dow Jones Today: Boeing Stock Takes Off
The Dow Jones Industrial Average looked set to close positive before reversing late. It ended the session basically flat, ceding about five points.
Boeing (BA) was one of the top performers, rising 2%. It remains stuck beneath its 200-day moving average.
Walgreens Boots Alliance (WBA) was the top stock on the Dow Jones today. It closed up 2.7%. Home Depot (HD) was the biggest laggard, falling more than 2%.
Bank Of America Passes Buy Point As Bank Stocks Flex Muscle
Financial stocks are continuing to rally on the prospect the Federal Reserve will raise interest rates faster than previously expected.
Banking giant Bank of America managed to break past a cup-without-handle base buy point of 48.79. It ended the day above this entry after gaining 2.2%.
It formed an orderly looking pattern despite a volatile market, MarketSmith analysis shows. BAC stock’s relative strength line has just hit a new high, a bullish indicator.
While its volume is not ideal, the fact it is rising amid broader downward action is impressive.
Another stock worth watching is regional banking play Western Alliance Bancorp (WAL). It is currently building a new cup base with a 124.98 buy point.
Volume has been spiking as it forms the right side of the base, which is a good sign. It bullishly reclaimed its 50-day moving average Tuesday.
Western Alliance operates in areas including Arizona, Nevada and Southern California.
Underlining strength among financials, the Invesco KBW Bank ETF (KBWB) rose 1.6%.
Bitcoin Dives Again, Hits These Stocks
Bitcoin-related stocks were falling as the cryptocurrency continued to slide. Bitcoin was trading under $42,000 after falling about 3% in the past 24 hours, according to CoinDesk.
One crumb of comfort was the fact it was off lows for the day.
The digital currency has now given up almost 40% from the levels it reached in early November.
Bitcoin plays such as Coinbase Global, Grayscale Bitcoin Trust and Riot Blockchain (RIOT) were all hit.
Cryptocurrency exchange COIN closed off lows, giving up 0.7%. GBTC fared worse, falling nearly 4%.
Bitcoin miner RIOT also ended the day off lows, giving up 0.6%.
Media Stocks: Discovery Soars, New York Times Dives
There was some interesting movement in the media space amid upgrade and acquisition news.
Discovery roared 16.9% higher after Bank of America upgraded the stock to buy due to its mooted merger with WarnerMedia.
Analysts believe the new firm could create a strong rival to media powerhouses Netflix (NFLX) and Walt Disney (DIS) in the streaming space.
Meanwhile shares of the New York Times plunged on news it plans to buy sports news site The Athletic for $550 million. It is expected that transaction will close in the first quarter of this year.
New York Times stock ended the day near lows as it gave up 10.7%. It is now near 12-month lows.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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