Dow Jones Turns Positive, Nasdaq Lower; Energy Sector Continues To Outperform

The Dow Jones Industrial Average erased early losses in today's stock market and remains off its intraday lows. The Nasdaq and S&P 500 remained lower in afternoon trading as tech stocks led the downside. Investors are awaiting this week's Federal Reserve's policy-setting meeting.

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Stock Market Today

In mid-afternoon trading, the Dow Jones industrials rose 0.1% after erasing losses of over 1%. The S&P 500 declined 0.5%, trimming a morning loss of more than 2.7%. Meanwhile, the Russell 2000 small-cap index slumped 1% and the Nasdaq was down 1.1%. Data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Monday.

The growth-focused Innovator IBD 50 ETF (FFTY) declined 1.8%. Shares remain well below key moving averages.

Last week, IBD changed the market outlook to "correction" as the indexes moved to violate key areas of support. Monday's upside reversal had the indexes closing higher after paring losses of over 3%. The positive action, however, has been called into question given Tuesday's sell-off.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	34192.41	-172.09	-0.50
S&P 500	(0S&P5)	4355.15	-54.98	-1.25
Nasdaq	(0NDQC )	13578.03	-277.10	-2.00
Russell 2000	(IWM)	198.37	-3.16	-1.57
IBD 50	(FFTY)	37.26	-0.60	-1.58
Last Update: 1:38 PM ET 1/25/2022

The majority of the S&P 500 sectors traded lower with only energy stocks trading higher. The Energy Select Sector SPDR (XLE) rose roughly 2.8%, far outpacing the other sector ETFs. Technology and consumer discretionary stocks led the downside with losses of over 2% each.

Investors are turning their attention to the Fed's next policy-setting meeting, which began Tuesday and finishes with a statement and news conference Wednesday. The meeting could result in the Fed's first interest-rate hike of 2022, which poses a potential threat to the overall market. Economists expect the first interest rate hike in early March.

Outside Dow Jones

Stocks making notable moves include chip stock Lam Research (LRCX), which slid more than 5% a day ahead of its earnings report. The stock is well below its 50-day and 200-day averages.

Elsewhere, MarketSmith Growth 250 stock Allscripts Healthcare (MDRX) skyrocketed over 16% in heavy volume and is now extended from a recent 17.70 cup-with-handle base. Allscripts issued preliminary quarterly earnings and revenue that beat Wall Street forecasts. The RS line moved sharply higher alongside the stock price.

Allscripts provides physician practices, hospitals and other health care providers with practice management and electronic health record technology.

Steel Dynamics (STLD) posted mild gains of around 0.2% after paring earlier losses. The company beat Q4 expectations. The steelmaker's earnings soared 496% to $5.78 a share with revenue up 104% to $5.31 billion. The company was upbeat on steel demand, expecting domestic steel consumption to ramp up from 2021 levels. Steel Dynamics stock sank to a nine-month low Monday before rebounding.

Lockheed Martin (LMT) shares gained after the aerospace company's fourth-quarter results exceeded analyst expectations early Tuesday. The stock is trading near the 378.20 buy point of a cup base within a larger, undefined pattern with a higher 397.09 buy point.

Dow Jones Financial Play

Finally, Dow Jones stock American Express (AXP) led the upside in the index and rose nearly 7% in heavy volume. Shares rose after the company announced fourth-quarter earnings estimates that beat expectations early Tuesday. Thanks to record credit card spending, the company boosted forecasts for revenue and profits in 2022.

Shares regained support at their conjoined 200-day, 50-day and 10-day lines. The stock could be headed for an early entry above the recent high of 176.82.