Dow Jones Shaves 296-Point Gain; Procter & Gamble Nears Buy Point

A solid open for the stock market Wednesday wasn’t looking so hot in afternoon trading as the Dow Jones significantly shaved a 1.2% intraday gain. In stock market news, IBM (IBM), United Technologies (UTX) and Procter & Gamble (PG) lit up the Dow Jones in the early going, fueling a 296-point intraday gain.




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The Dow Jones was up 0.2%; the S&P 500 eased 0.2% and the Nasdaq composite was down 0.4%. All three indexes are battling for support at their 50-day moving average lines.

Volume on the NYSE was tracking lower than Tuesday’s levels. Nasdaq volume was on pace to be slightly higher.

Distribution, or signs of institutional selling, has been limited since the S&P 500 confirmed a new uptrend Jan. 4. This, plus the fact that more setups are starting to emerge, is working in the bulls’ favor for now. But Wednesday’s action was a reminder to growth investors that sellers are still around.

Dow Jones Gainers

Shares of Procter & Gamble jumped 4% to 94.40. It’s just below a 96.99 entry after it hit an intraday high of 96.40.

Other gainers in the Dow Jones included McDonald’s (MCD). It’s working on the right side of a shallow base with a 190.98 buy point.

Dow Jones component Verizon (VZ) also bucked the trend in the Dow Jones, rising 1%. It’s working on a cup-with-handle base with a 58.79 entry.

In other stock market news, LHC Group (LHCG) topped a 107.61 buy point but backed off. It was featured in Tuesday’s IBD Stock Of The Day.

Enterprise software leader Workday (WDAY) also joined the breakout ranks early Wednesday but a 3.1% intraday gain faded to less than 1%. Shares were up 0.8% to 172.17 after earlier topping a 172.77 buy point.

Leaderboard name Tencent Music (TME) held up relatively well despite the market’s downside reversal. Shares were up 1.5% to 15.02 after Tuesday’s breakout from an IPO base.

Inside the IBD 50, Wingstop (WING) is also showing strength. After a failed breakout over a 72.10 buy point, a handle is in place with a 72.32 alternate entry.

Several semiconductor stocks will be out with earnings after the bell. Watch for reports from Lam Research (LRCX), Texas Instruments (TXN) and Xilinx (XLNX). Xilinx was featured in the latest Earnings Preview story as a possible call option trade ahead of earnings.

Citrix Systems (CTXS), with a Composite Rating of 95, also reports after the close. It’s been consolidating since late July, and the chart shows an early entry of 112.37, 10 cents above its Nov. 29 intraday high.

Results from Intuitive Surgical (ISRG) are due Thursday after the close. It’s in a decent technical setup ahead of the results, just below a 549.08 buy point.

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