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Dow Jones Leads Mixed Market; Why Volume Soared

The Dow Jones industrial average led a mixed day on Wall Street Friday as large stocks fared better than smaller ones, including Dow component McDonald’s (MCD).




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The Dow made another record high, adding 0.3%. McDonald’s led the industrials with a 2% increase after the global fast-food chain announced a 15% increase in its quarterly dividend.

Boeing (BA), the latest addition to Leaderboard, rose 1.3% in strong turnover that jumped 130% above its 50-day average. The megacap is slowly rising from a 364.64 alternative buy point. The stock is nearing a 374.64 standard buy point, which is another proper entry.

The S&P 500 closed a fraction lower after making a new high in early trading. The Nasdaq composite fell 0.5%. It closed below the 8000 level and is still showing some lag compared with the other two big indexes.

Invesco QQQ Trust (QQQ), the ETF that tracks the Nasdaq 100, fell 0.6%. The ETF has been rising from a pullback to the 50-day moving average, much like the Nasdaq.

Small caps also were out of favor, with the Russell 2000 down 0.5%. The Russell is holding above the 50-day line, however.

Volume rose, although the simultaneous expiration of options and futures contracts caused trading to swell well above normal levels. Changes in S&P indexes that go into effect today appeared to cause volume to pick up on communications and media stocks such as Facebook (FB) and Alphabet (GOOGL).

Health care, internet and some cyclical groups such as chemicals were the weakest Friday. Biotechs fell 1.7%; Internet content was down 1.5% as a group; generic drugs slipped about 2%. Semiconductors, financials and metals and materials also were noticeably weaker.

Micron Technology (MU) fell nearly 3% in heavy trading after the memory chip company gave weak guidance with its earnings report late Thursday. Micron’s breakout from a late-stage base in May has failed and the stock has met resistance at the 50-day moving average since then — a bearish trend.

Airlines, insurance and oil groups were among the best performing industries Friday.

It was another lackluster day for breakouts, with several stocks topping buy points but sinking back into their patterns.

FleetCor Technologies (FLT) edged above its 226.02 proper buy point of a flat base only for a moment. It closed below the entry in weak volume.

Mondelez International (MDLZ), the snack foods purveyor, barely rose above a 44.33 buy point. Oil exploration company Unit (UNT) cleared a 28.17 entry but reversed lower.

Leading stocks were nonfactors, with the Innovator IBD 50 ETF (FFTY) almost flat on the day.

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