Dow Jones turns lower; Electric vehicle stocks in China fall despite record deliveries

The Dow Jones Industrial Average reversed lower early on Friday. The S&P 500 and Nasdaq composite also initially rose, but then faded to post losses about an hour after the opening bell. The indices ended the worst first half of the year in decades – and for the Nasdaq composite, the worst first half on record.


Dow Jones lags behind

After the market opened, the Dow Jones Industrial Average was down 0.7% as the S&P 500 fell 0.6%. The Nasdaq was down 0.5%. Small caps fared the best, with the Russell 2000 up 0.3%. Volume was lower on the Nasdaq and NYSE compared to the same time Thursday, according to IBD data.

Indices posted heavy losses in the first half of 2022, with the Nasdaq down 29.4%, its worst first half on record, and the S&P 500 down 20.6%. “The already rocky stock market rally ran into more trouble on Thursday as major equity indices ended with moderate losses, even after taking heavy losses at the market open,” the Big Picture column said Thursday. “Given the extremely challenging environment, investors should remain on the defensive and focus only on stocks exhibiting exceptional fundamental and technical strength.”

The 10-year rate continued to fall on Friday, at 2.86% at the start of the session. Thursday was the first time the 10-year yield fell below 3% in almost a month. Crude oil prices rebounded early Friday after suffering declines earlier this week. The commodity rose 2.3% to $108.15 a barrel.

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0DJIA) 30514.86 -260.57 -0.85
S&P500 (0S&P5) 3756.97 -28.41 -0.75
Nasdaq (0NDQC ) 10942.64 -86.10 -0.78
Russell 2000 (IWM) 168.11 -1.25 -0.74
INN 50 (FFTY) 26.38 -0.47 -1.75
Last Updated: 10:40 a.m. ET on 07/01/2022

Among the S&P 500 sectors, results were mixed. The utilities and real estate sectors outperformed while health care and technology lagged.

Stocks leading the rise in Dow Jones Industrials on Friday included Boeing (BA) and (CRM), up more than 2% each. On the decline, UnitedHealth (UNH) and Intel (INTC) fell.

UnitedHealth is back below a recent double bottom buy point of 507.35. The stock initially broke above this area earlier this week. But stocks are struggling to trade above the entry. UnitedHealth recently recovered its 50-day line and its RS line is making new highs on the weekly chart.

China EV sales beat June second-quarter expectations

Electric vehicle sales in China for June and the second quarter of Nio (NIO), Xpeng (XPEV) and Li-Auto (LI) exceeded expectations on Friday morning.

Li Auto stock was in a buy zone early on Friday, but reversed into a 3% loss. Nio and Xpeng also traded lower and are on course to post a five-day losing streak after strong gains in recent weeks.

Nio delivered a record 12,961 vehicles in June, up 60.3% from a year earlier and May’s 7,024. Xpeng delivered 15,295 vehicles in June. This is its best month since December and a jump of 133% over the previous year. Li Auto delivered 13,024 Li One hybrid SUVs in June, up 68.9 percent from a year earlier. These are the highest monthly sales since last December. Li Auto delivered 11,496 vehicles in May.

The Chinese electric vehicle and battery giant BYD (BYDDF) is also expected to release its June sales. BYDDF stock is still in a buy zone since Monday’s breakout after entering 39.81 cup with handle. Its relative strength line has reached new heights.

Follow Rachel Fox on Twitter at@IBD_RFox for more commentary on the Dow Jones and the stock market.

Garland K. Long