Dow Jones Rises; Retail Stocks Fall, Bed Bath & Beyond Pops

The Dow Jones Industrial Average pared gains to start the first week of calendar fourth-quarter earnings season. The blue chip index was up 0.4% at 1:30 pm ET after rising over 2% earlier today. It remained above its 50-day moving average.


The S&P 500 was up 1% in afternoon trading and rose above its 50-day line today. The Nasdaq led with a 2% gain and was approaching the 50-day line. The small-cap Russell 2000 rose 1% in the afternoon.

Volume rose on the NYSE and fell on the Nasdaq compared to the same time on Friday.

Crude oil rose over 1% to trade at $74.89 a barrel. The yield on the benchmark 10-year Treasury note fell 4 basis points to 3.53%.

According to the latest data from S&P Global Market Intelligence, real GDP rose to 2% in 2022. Strong numbers from trade and inventories in November resulted in above trendline GDP growth in the second half of the year.

Joel Prakken, co-head of US economics at S&P Global Market Intelligence, said, “An emerging risk is that the economy remains stronger for longer than previously anticipated, requiring a more aggressive and persistent monetary tightening to prevent higher inflation from becoming entrenched.”

Stocks Moving Outside Dow Jones

Shares of Above (UBER) rose over 5% after an upgrade to overweight from Piper Sandler analyst Alexander Potter. The new price target is 33. Uber is forming a base with a buy point of 31.92.

Also up after an analyst upgrade is Oracle (ORCL). It got an overweight rating from Piper Sandler analyst Brent Bracelin, with a price target of 104, up from 85. Shares have risen nearly 2%. The stock’s relative strength line is also at a 52-week high.

elsewhere, Regeneron Pharmaceuticals (REGN) is down over 6% and is on pace for its largest decline since March 20, 2o20.

Caterpillar (CAT) is in a buy zone from a cup-with-handle base and buy point of 238. CAT is on IBD Leaderboard.

Bed Bath & Beyond (BBBY) popped over 30% with strong volume even as bankruptcy haunts the home goods company. Shares, however, are trading below 1.75. Earnings are due Tuesday.

Commercial leasing stocks are rising today. McGrath Rent Corp (MGRC) broke out of a flat base with a buy point of 100.40 Friday and is back to the buy point today. H&E Equipment Services (HEES) is in a buy zone after a breakout past 47.27.

Retail stocks Macy’s (M) and Lululemon (LULU) fell over 7% each after warning about dismal holiday season sales.

Earnings On Deck For Dow Jones Stocks

Commercial Metals (CMC) is up fractionally after strong earnings today. Shares are in a buy zone after the stock found support at the 10-week moving average.

On Friday, Dow Jones leaders JPMorgan Chase (JPM) and UnitedHealth (UNH) will report earnings before the open. JPM is approaching a buy point of 138.76 in a flat base. UNH is well below its 50-day line.

Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.


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