Stock Market Update: Dow Jones Fluctuates Ahead of Federal Reserve Meeting

Strategic Insights -

The Dow Jones Industrial Average showed brief resiliency before resuming its downward trend as the latest Federal Reserve meeting commenced. Market volatility drew investors in, with some notable stocks making significant gains. Notably, American Express surged over 9% following the release of Q4 earnings, exceeding expectations. Meanwhile, General Electric tumbled due to disappointing results, and Johnson & Johnson rose over 3% on the back of upbeat guidance.

Key Takeaways:

  • The Dow Jones Industrial Average fluctuated before turning down as the Federal Reserve meeting commenced.
  • American Express led the Dow Jones with a 9% gain in heavy volume, boosted by Q4 earnings exceeding expectations.
  • Johnson & Johnson rose over 3% with upbeat guidance, while General Electric tumbled due to disappointing results.
  • The S&P 500 was down 0.2%, with the energy and financial sectors showing gains, while technology was the worst performer.
  • Small caps were well off lows, but growth stocks struggled, with the Innovator IBD 50 ETF down 0.4%.
  • Matador Resources and Cactus managed to impress, with the latter bouncing back above its old cup base buy point of 47.04.
  • The energy sector has been strong in 2022, with the Vanguard Energy Index Fund ETF up nearly 4% and 13% year-to-date.

Statistics:

  • Treasury yields rose 4.95 basis points to 1.78%.
  • The Nasdaq was down 0.8%, with Datadog falling 5%.
  • The S&P 500 was down 0.2%, with GE stock down nearly 6% after issuing disappointing outlook.
  • American Express rose over 9% in heavy volume, with shares surging past its conjoined 200-day, 50-day, and 10-day lines.

Sources:

  • Oanda senior market analyst Edward Moya as quoted in a note to clients.
  • Investors.com article "Dow Jones Today: American Express Stock Pops" (no date provided)
  • Investors.com article "Nasdaq Stumbles, Growth Stocks Struggle" (no date provided)
  • Investors.com article "GE Stock Plunges On Results" (no date provided)
  • Investors.com article "These Energy Stocks Impress" (no date provided)
  • U.S. Stock Market Today overview on Investors.com (updated 1:58 PM ET 1/25/2022)