Dow Jones Romps Thanks To Disney And These 4 Key Stocks

The Dow Jones Industrial Average led a broad stock market rally, thanks in part to big gains from Disney (DIS), Dow Inc. (DOW) and three other Dow stocks.




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The Dow Jones Industrial Average rallied 1%, the S&P 500 rose 0.7% and the Nasdaq added 0.5%. Small caps lagged slightly, with the Russell 2000 up 0.4%. Preliminary data showed mixed volume, tracking higher on the NYSE but a bit lower on the Nasdaq vs. Thursday.

For the week, the S&P 500 and Nasdaq climbed about 0.5% each, while the Dow Jones gave up 0.1%, well off the week’s lows. The S&P 500 and Nasdaq are now just 1% away from their respective September and August peaks. The Dow Jones is 2% below its Oct. 3 high.

Disney was the big winner on the Dow Jones, as it gapped up and soared 11.5% to a record high in heavy trade. The media and entertainment giant debuted its Disney+ video streaming service at $6.99 a month.

Disney+ is widely viewed as a stiff competitor to Netflix (NFLX), which fell 4.5% to slide below its 50-day moving average. Netflix, which reports earnings Tuesday, saw volume swell to twice the normal pace.

Dow Inc., up 6%, also boosted the Dow Jones index. The stock has been rather volatile since its April 2 debut. JPMorgan (JPM) stock weighed in with a nearly 5% jump, while Goldman Sachs (GS) and Boeing (BA) added more than 2.5% apiece.

‘Amazon Of Africa’ Debuts

In IPO news, Jumia Technologies (JMIA) leapt 74% in its first day of trade. The so-called Amazon of Africa raised $196 million.

The biggest industry group winners in the stock market today included energy, banks and transport. But medical, steel and movie-related stocks (led by Netflix) lagged.

U.S. oil and gas explorers gapped up and surged 5% to a four-month high. West Texas intermediate crude prices climbed 0.3% to $63.79 a barrel.

Anadarko Petroleum (APC) vaulted 32% on news Chevron (CVX) will acquire the company for $33 billion. Chevron skidded 5%, dropping below its 50-day line for the first time since late January.

Other oil explorers on the move included Pioneer Natural Resources (PXD) and Parsley Energy (PE), which leapt nearly 12% a piece.

Among sector ETFs, SPDR S&P Oil & Gas Exploration & Production (XOP) rallied more than 3% to its best close since Dec. 4. Shares are up 36% from their late December low but remain 28% off their October high.

IBD 50 Stock Surges

Fortinet (FTNT) led the IBD 50 with a 3.4% jump, extending its gains past an 88.70 cup-with-handle buy point cleared Wednesday. Shares remain near the top of a buy range from the entry. Analysts offered upbeat comments Wednesday from Fortinet’s annual user conference.

Among other IBD 50 gainers, natural gas transporter Tallgrass Energy (TGE) and chip designer Monolithic Power Systems (MPWR) rose about 2% each.

On the downside, PRA Health Sciences (PRAH) slid more than 2% to close below its 200-day line for the first time since mid-January. The stock has been working on a cup with handle with a potential 115.60 buy point.

The Innovator IBD 50 ETF (FFTY) edged 0.4% higher to mark its fifth advance in the past six sessions.

Please follow Gondo on Twitter at @IBD_NGondo for more on growth stocks, ETFs and how to invest in CAN SLIM-quality market leaders.

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