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Dow Jones Stocks Top 50-Day; Nike Near Buy; Stock Market Futures Up

Dow Jones stocks Apple (AAPL), Microsoft (MSFT) and UnitedHealth (UNH) reclaimed their 50-day lines Wednesday as the stock market staged a furious rally. A fourth Dow Jones stock, Nike (NKE), is near a buy point. Separately, embattled Facebook (FB) rebounded late after Facebook CEO Mark Zuckerberg answered questions. Dow Jones, Nasdaq and S&P 500 futures signaled modest gains late.

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Stock Market Action

Wednesday’s stock market action was encouraging. After plunging at the open as China announced retaliatory tariffs, the Dow Jones rebounded more than 700 points from its low, and the S&P 500 index found support again at its 200-day line. The Nasdaq composite advanced 1.45%.

This is the second day of a rally attempt within a stock market correction. A confirmed uptrend has not yet taken hold. Investors should work on their watch lists of the best stocks, top-rated names setting up in bullish patterns. Also, read the Stock Market Today and The Big Picture every day to stay in sync with major market turns.

Four Dow Jones Stocks

Dow Jones stocks Apple and Microsoft reclaimed their 50-day moving averages, but do not yet have proper buy points. UnitedHealth, which also moved above its 50-day line, is in a consolidation with a potential entry. Nike, which reclaimed its 50-day line Tuesday, is closing in on an entry.

UnitedHealth and Nike also boast relative strength lines right around all-time or long-term highs. The RS line tracks a stock’s performance vs. the S&P 500 index. The RS lines for Apple and Microsoft are still off recent peaks, but not too far off.

Stock Market Futures

S&P 500 futures rose 0.3% above fair value. Dow Jones futures advanced 0.35%. Nasdaq 100 futures climbed 0.4%.

Apple

Apple rose 1.9% to 171.61. Volume was higher than Tuesday’s but 15% below normal. The Dow stock is in the fourth week of a consolidation. The pattern needs at least five weeks to be a proper flat base with a buy point, presumably at 183.60.

Microsoft

Microsoft popped 2.8% to 92.26 on Wednesday on volume that was 13% below average. An early March breakout from a 96.17 entry quickly failed, with the buy point no longer valid. Microsoft also needs to consolidate through at least the end of next week before it would have a potential base and entry.

UnitedHealth

UnitedHealth climbed 1.9% to 228.79 in volume that was 13% above normal. The leading health insurer is in a consolidation with a 250.89 buy point.

UnitedHealth has surged nearly 7% this week, fueled in part by reports that Walmart (WMT) is in talks to buy Humana (HUM). UnitedHealth, Humana and Quest Diagnostics (DGX) this week also agreed to joint test using blockchain to cut health care costs.

Nike

Nike advanced 2.6% to 68.42 after sprinting 4% on Tuesday, leaping above its 50-day line. The athletic apparel and shoe giant is in a short flat base with a 70.35 buy point.

Nike is in a pocket of market strength that includes apparel makers and retailers. Other leading stocks hail from specialty discounters, home furnishing chains and other consumer stocks.

Facebook

Facebook rose nearly 3% in late trading after CEO Zuckerberg parried questions from reporters. He said he’s the best person to be CEO and said he knew of no stirrings by the board to remove him as chairman. He also addressed security and privacy issues vexing the social networking giant. Zuckerberg will testify before Congress on April 11.

Earlier, Facebook fell after disclosing that 74% more users were affected by the Cambridge Analytica scandal than previously thought. Shares closed off lows, losing less than 1%. But the stock settled 20% off its record high and not far from a 52-week low.

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