Dow Jones Falls As Sell Off Worsens On Rising 10-Year Treasury Yields; JPMorgan, Goldman Sachs Kick Off Earnings Season

The Dow Jones Industrial Average traded lower in today’s market. Meanwhile, the S&P 500 also closed lower after moving off intraday highs. The Nasdaq composite turned negative later in the day, while oil prices jumped over 1% higher.


Stock Market Today

The sell-off in stocks worsened near the close Tuesday, when the 10-year Treasury yield started to rise. It’s now up 5 basis points to 1.41%.

Early Tuesday, stocks sold off after new data showed consumer prices surged by the most since June 2008. The Consumer Price Index came in with a 0.9% rise, almost double the consensus estimate of 0.5%. Prices also rose 5.4% year over year, which was above consensus views for 5%.

At the close, the Nasdaq held a loss of 0.4% after reaching a new high of 14,803.68 earlier in the day. Meanwhile, the S&P 500 traded 0.3% lower after it reached a new high of 4,392.37. The Dow Jones industrials lost 0.3%. The small-cap Russell 2000 index lagged, trading 1.8% lower on Tuesday. Volume was running higher on the Nasdaq and the NYSE vs. the close on Monday, according to early data.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34889.05 -107.13 -0.31
S&P 500 (0S&P5) 4369.32 -15.31 -0.35
Nasdaq (0NDQC ) 14677.65 -55.59 -0.38
Russell 2000 (IWM) 222.39 -4.18 -1.84
IBD 50 (FFTY) 44.03 -0.12 -0.27
Last Update: 4:28 PM ET 7/13/2021

Elsewhere, oil prices shifted higher after volatile trading in recent weeks. Shares initially sold off but recovered last week due to a breakdown in communications between OPEC+ members. However, shares rose nearly 1.6% on Tuesday as West Texas intermediate oil prices hit $75.25 a barrel near Tuesday’s close. This is just below the recent high on July 6 of $76.94 a barrel.

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Growth stocks traded higher, though the Innovator IBD 50 ETF (FFTY) closed down 0.3%. Shares still remain below support at the 50-day line but found support at the 200-day line earlier this week. Stocks leading the downside included Upstart Holdings (UPST) and Smith & Wesson Brands (SWBI).

Dow Jones Today

Earnings season also kicked off, with major companies releasing their second-quarter results. JPMorgan (JPM) and Goldman Sachs (GS) both reported earnings before the open Tuesday.

Analysts expected JPMorgan to show an EPS increase of 129% year over year but sales falling 11%. The company reported strong Q2 results with earnings of $3.78 a share on revenue of $30.5 billion, topping views. The stock remains below its 50-day line as it forms a flat base with a 167.54 buy point. JPM stock is about 8% away from the entry.

Meanwhile, Goldman Sachs was expected to show a bottom-line increase of 219% year over year, even as revenue falls 9%. The firm ended up reporting earnings of $15.02 per share on revenue of $15.39 billion, easily beating analyst estimates. The stock is working on a flat base with a 393.36 buy point, according to IBD MarketSmith chart analysis. It’s remains roughly 5% away from the entry.

Despite both firms beating estimates, their stocks were down roughly 1% each. Big bank stocks have come under pressure in recent weeks while Treasury yields taper off. Additionally, trading revenue has also been normalizing after the pandemic-fueled volatility. However, the recent influx of IPOs and M&As buoyed investment banking results this quarter.

Stocks underperforming in the Dow Jones on Tuesday included Boeing (BA), which fell over 4% after gapping down in heavy volume. Boeing stock formed a consolidation with a 278.67 entry point but is hitting resistance at the 50-day line. The jet maker announced plans to cut production of its 787 Dreamliner as it looks to resolve another manufacturing issue, forcing another slowdown to deliveries, according to the Wall Street Journal.

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Meanwhile, Caterpillar (CAT) and Dow Inc. (DOW) also lost around 1% each on Tuesday.

On the upside, Apple (AAPL) rose 0.8% and remains extended from the buy zone of a cup base with a buy point of 137.17, according to MarketSmith chart analysis. The stock broke out initially on June 30 but slipped back below the buy area a few times. Now, shares are trading above the upper edge of the buy zone, which topped out at 144.02.

In recent weeks, Apple stock has reclaimed its 50-day line, a bullish sign. The stock’s RS line has also turned higher.

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