The stock market was mixed Thursday morning as the jump in Treasury yields slowed and the IBD 50 outperformed the market.
Indexes opened with mild bounces after two days of heavy selling, and those opening gains faded in the first half-hour of trading.
The Nasdaq composite held a 0.2% gain, and the S&P 500 was a fraction lower. The Dow Jones Industrial Average was down 0.6%. Volume fell on the NYSE and Nasdaq compared with the same time on Wednesday.
But the Innovator IBD 50 ETF (FFTY) rose 0.8%, with strength coming mainly from energy and fertilizer stocks.
U.S. Stock Market Today Overview
Last Update: 10:10 AM ET 4/7/2022
Fertilizer suppliers LSB Industries (LXU) and CF Industries (CF) rose 6% and 2%, respectively, as both traded near new highs.
Health Care Sector Leads Stock Market
Health care is this morning’s best performing S&P sector, and some health care leaders in the IBD 50 also made good gains. Shockwave Medical (SWAV) is forming a cup base with a 249.83 buy point. Its lithotripsy tool uses a series of electrical pulses to crack hardened calcium in blood vessels.
Two self-storage stocks in the IBD 50 are near buy points. CubeSmart (CUBE) is trying to break out of a cup with handle with a 54.16 buy point. The relative strength line is near new highs also. Extra Space Storage (EXR) is above the 211.15 buy point of another cup with handle.
Tesla (TSLA) was another IBD 50 stock up more than 2%. The stock is forming a cup base with a 1,208.10 buy point.
The yield on the 10-year Treasury note rose 3 basis points to 2.64%. It remains near the highest point since March 2019. The price of U.S. crude oil rose 1.1% to $97.33 a barrel. Oil on Wednesday closed below $100 a barrel after May futures tumbled 5.6% to $96.23. Oil prices have been trending lower for two weeks.
Buffett’s Berkshire Hathaway Discloses HP Stake
HP (HPQ) jumped 18% after Warren Buffett’s Berkshire Hathaway (BRKB) disclosed it acquired an 11% stake in the maker of personal computers and printers. The stake is worth $4.2 billion based on Wednesday’s closing prices, The Wall Street Journal reported.
HP shares broke out of a double-bottom base on March 25, but the breakout failed when the stock fell 12% from the 39.17 buy point. Thursday’s rally took shares back above the buy point and they are now above the buy zone. Berkshire stock was nearly unchanged.
Rite Aid (RAD) sold off nearly 23% after Deutsche Bank downgraded the stock to sell from hold. According to Benzinga, the bank also cut its price target from 16 to to 1. The drugstore chain’s stock has been in decline for more than a year, falling to the lowest since December 2019 earlier this week.
LPL Financial (LPLA) was little changed after JMP Securities upgraded the investment advisory firm to outperform from market perform. It also raised the target price to 242. LPL stock is forming a cup-with-handle base with a 191.08 buy point.
European stock markets were narrowly mixed. The London FTSE 100 was down 0.2% in afternoon trading. The Paris CAC 40 and Germany’s DAX rose 0.2%. In Asia, the Hong Kong Hang Seng fell 1.2%, the Shanghai Composite lost 1.4% and the Tokyo Nikkei 225 slid 1.7%.
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