Stock market gains while Powell continues to testify; Health stocks are superior

The stock market rose on Thursday morning as unemployment claims weakened, pointing to a tight labor market, despite fears of a recession. Fed Chairman Jerome Powell continued to address Congress on his second day of testimony. Earned stocks in healthcare.


The Nasdaq rose 1.1 percent, the S&P 500 rose 0.4 percent, and the Dow Jones Industrial Average remained unchanged. The Russell 2000 small-cap index rose 0.5%.

Volume fell on the NYSE and Nasdaq compared to the same time on Wednesday. (AMZN), Apple (AAPL) and Microsoft (MSFT) all won more than 1.5%.

Overview of the US stock market today

Index symbol Price Profit / Loss % Change
Dow Jones (0DJIA) 30488.97 +5.84 +0.02
S&P 500 (0S & P5) 3776,25 +16.36 +0.44
Nasdaq (0NDQC) 11176.80 +123.72 +1.12
Russell 2000 (IWM) 168.61 +0.79 +0.47
IBD 50 (FFTY) 26.92 -0.35 -1.28
Last updated: 11:54 ET on 23.06.2022

Unemployment claims fell to 229,000 from 231,000 last week, according to the Ministry of Labor. Econoday’s consensus forecast was 225,000. The latest figures remain close to record lows.

PMI indicates continued weakness

The S&P Global Purchasing Managers’ Index for June fell to 51.2 in June from 53.6 in May. This was the weakest increase in five months, while weaker demand led to the first contraction of new orders since July 2020. A quick report on PMI also noted that although costs remain high, rising commodity prices are the most the slow one from April 2021

Powell testified before the House Financial Services Commission today. On Wednesday, Powell told a Senate committee that the Fed wanted to see concrete evidence that inflation was cooling. He also acknowledged that the continued rise in interest rates could lead to a recession, but said the US economy was “strong” and could withstand further interest rate hikes.

Meanwhile, the average interest rate on a 30-year fixed-rate mortgage rose to 5.81%, the highest level since November 2008, Freddie Mack said on Thursday.

The yield on 10-year bonds fell by 11 basis points to 3.04%. The price of American crude oil was almost equal to 106.18 dollars per barrel.

Health stocks lead the stock market

Healthcare stocks were one of S & P’s leading sectors, accompanied by other inflation-resistant sectors such as utilities and consumer commodities. Health Care SPDR ETF (XLV) rose 1.6% on Thursday.

Merck (MRK) jumped 1.4% back into its buying range of 89.58 points for a cup-based purchase with a handle. Merck regained its 50-day line, which is a bullish sign, but the break at 89.58 failed. UnitedHealth (UNH) rose nearly 2% from the pace of a three-day rally. Shares just rebounded their 200-day line on Tuesday and returned to their 50-day line on Thursday.

Johnson and Johnson (JNJ) also jumped above its 50-day line, gaining 1.3%. J & J’s line of relative strength marked a new peak, which shows the strength of the price performance at this time. The shares are still below the buying point of 186.79. HMO supplier Humana (HUM) rose 0.8% and appears to form a flat base with a buying point of 469.44.

FedEx Shares of (FDX) fell on Thursday as the company prepares to report its fiscal fourth quarter late Thursday, shortly after making shareholder-friendly moves and signaling a change in strategy. Shares of FedEx fell on Wednesday, but rose more than 11% last week. It challenges the resilience of the 200-day moving average.

IBD 50 Drops, Chinese electric car manufacturers shine

Innovator IBD 50 ETF (FFTY) fell 2%, erasing earlier gains.

Funko (FNKO) led by 10% to new highs. JPMorgan Chase improved the collector’s item to overweight from neutral and raised the target price to 28 out of 25.

The rally with Chinese electric cars continued. Xpeng (XPEV) jumped 5% and is at a pace for its sixth weekly increase in the last seven weeks.

Lee Auto (LI), which recently launched its L9 SUV, rose more than 7%, surpassing its December 1 high of 37.45.

Follow Michael Molinski on Twitter @IMmolinski

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