Stock Market Today: Dow Jones On Pace To Break Win Streak As Treasury Prices Keep Falling; Meta Platforms Down 1% As This Blue Chip Trips Sell Rule (Live Coverage)

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Buyers mostly stayed in bed during the opening hour of the stock market today after the Christmas holiday. Financial, retail and technology stocks led the downside following three straight days of gains.

The Nasdaq composite fell 0.6% at around 10:15 a.m. ET on Wall Street before trimming that loss down to 0.2% at 10:30 a.m. Yet that proved a fraction of the 3.3%-plus advance paved over the three prior sessions. Meanwhile, the S&P 500 and Dow Jones Industrial Average each fell in the vicinity of 0.2% to 0.3%. The Dow Jones index looks poised to halt a four-session win streak.

The Russell 2000 turned 0.1% higher, wiping away mild early losses.

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Volume was pacing lower vs. the same time Tuesday on the Nasdaq but sharply higher on the New York Stock Exchange. Keep in mind that Tuesday was a half-day session.

Among megacap techs, Meta Platforms (META) demonstrated a tinge of sluggishness seen among a select group of techs so far in December. Granted, both Meta, a major Leaderboard portfolio holding, and the Nasdaq have risen valiantly in 2024. Still, the social media giant, down more than 5 points, or roughly 1%, to 602.04, is not seeing much lift since breaking out of a flat base showing a 602.95 buy point.

Meta maintains excellence in its IBD ratings. They include a 96 Composite Rating and an 88 Relative Strength Rating.

Also, the Nasdaq-listed leader deserves merit for rebounding well during recent pullbacks to and below the 50-day moving average.

Bonds Hit Stocks Again?

Sellers again took control of the government bond market, sending yields higher. An increase in the cost of money can have a dampening effect on consumer spending.

The yield on the U.S. Treasury 10-year note jumped four basis points to 4.63%, the highest level since May 29. Meanwhile, ProShares UltraShort 20+ Year Treasury (TBT) gained 1.3% to 36.70. It has cleared a cup-with-handle entry at 35.66. The ETF is designed to rise when Treasury bond prices fall and yields rise, and it is levered to deliver twice the move as the Barclays 20+ Year U.S. Treasury Index.

Within the Dow Jones industrials, keep a close eye on Home Depot (HD). It was among a bunch of blue chip components falling 1 point or more in the stock market today. The home improvement chain recently cut right through the 50-day moving average and fell 9% below a breakout point at 421.56.

The golden rule of IBD-style investing is to keep losses minimal in every trade.

Home Depot has lagged the large-cap indexes, rising 13% since Jan. 1. Its Relative Strength Rating of 67 is mediocre. Earnings are seen dipping 1% in the fiscal year ending in January, then rising just 4% in the next fiscal year.