The Dow Jones Industrial Average and other indices were trading near session lows on Friday afternoon. Hawkish comments from St. Louis Federal Reserve Chairman James Bullard started Thursday’s decline, with continued selling pressure as we head into the long bank holiday weekend.
The Dow Jones Index is attempting to hold support at its 50-day moving average. Dow rejecters include rafters (CVX), which was weighed down by a sharp drop in oil prices. U.S. crude oil futures were down 3% at midday to $76.11 a barrel. The energy giant fell below its 200-day moving average.
Also in the Dow Jones, Foreclosure (CRM) returned 2.6% as it struggles near its 21-day exponential moving average. On the other hand, defensive stocks amgen (AMGN), note (MRK) and Coke (KO) excelled in the early days.
Fed fund rates rose after the latest consumer and wholesale inflation data came in higher than expected. After hitting a low of about 3.33% on Feb. 2, the 10-year Treasury yield started to rise, remaining flat at 3.84% as of Friday lunchtime.
As it stands now, federal fund traders are pretty confident about a quarter point hike in March and another in May. The probability of a 50 basis point hike in March is around 20%. For the June session, the odds of another quarter-point hike have increased to around 60%.
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Dow Jones stock home depot (HD) returned 2% ahead of next week’s earnings report. Results are due Tuesday before opening. HD stock has surpassed its 10-week moving average as it forms a choppy flat base.
After a strong three-day rally, bitcoin fell 2% to around $24,000.
The Innovator IBD 50 ETF (FFTY) sold down 1.3%.
Outside the Dow Jones
The Nasdaq Composite lost 1.4%, the S&P 500 1% and the Russell 2000 0.4%. The Nasdaq Composite and S&P 500 marked new trading days on Thursday. The count now stands at three for the S&P 500 and two for the Nasdaq.
Along with the Dow Jones Industrial Average, both indices confirmed a new uptrend on Jan. 6 with big percentage gains on higher volume. The rally worked well due to limited distribution signs. The S&P 500 lost support at its 21-day moving average early Friday. The Nasdaq is testing support at its 21-day moving average.
HubSpot (HUBS) was a rare bright spot in the technology industry. Enterprise software stock surged above an entry of 399.65 after reporting a 91% jump in quarterly earnings. Revenue rose 27% to $469.7 million.
DraftKings (DKNG) rose more than 14% after announcing fourth-quarter revenue rose 81% to $855.1 million. That was well above the $800 million consensus. The sports betting company also reported a narrower-than-expected loss of 53 cents a share.
DoorDash (DASH) reported solid fourth-quarter revenue of $1.8 billion, up 40%. The company also announced a $750 million share repurchase. But the stock reversed lower, losing almost 6%.
deer (DE) surpassed its 50-day moving average after earnings and sales beat expectations. The agricultural machinery giant broke well below its 50-day moving average last month.
Many energy stocks fell sharply. Halliburton (HAL) is down more than 7% below its buy point of 40.09, which is a sell-signal. It also remains stuck below the 50-day moving average.
NOV (NOV), which makes drill rigs, is down more than 3% and is more than 7% below its buy point of 24.35. However, the stock is holding its 50-day moving average.
Within the MarketSmith Growth 250, Kinsale Capital (KNSL) was the big winner, up more than 10%. The stock gaped above the 305.20 buy point from a cup and handle basis. The insurer reported a 48% increase in quarterly profit. Revenue rose 32% to $243 million.
AutoNation (AN) has also slipped in profit. But AN stock has already been extended above the 5% buy zone from an entry of 125.47. Investors who bought from the 125.47 buy point should at least take some profits.
modern (MRNA) slumped 5% at midday after announcing mixed results for its experimental RNA-based flu vaccine.
Follow Ken Shreve on Twitter @IBD_KShreve for more Dow Jones analysis and insights.
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