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Dow Leads Stocks Higher Thanks To These Components | Stock News & Stock Market Analysis

Stocks shook off morning weakness and were higher Thursday afternoon, sending the Dow Jones industrial average to a new high.

X The Dow was up 0.6% to lead the main indexes. It benefited from 3M (MMM), which leapt nearly 3% to an all-time high after the company’s earnings and sales topped views. Megacap 3M also raised its quarterly dividend and announced plans to increase investments this year.

Another contributor to the Dow was Caterpillar (CAT), which reversed higher. The heavy-equipment maker breezed past sales and profit expectations. The stock also is near a record high. United Technologies (UTX), which reported earnings Wednesday, and Boeing (BA) also were outperforming.

The S&P 500 and the Nasdaq composite were up 0.2%. The small-cap Russell 2000 was flat. Volume was lower compared with the same time Wednesday. Winners and losers were even on the Nasdaq but losers had a slight advantage on the NYSE despite the S&P 500’s gain.

There was no clear leadership in today’s market. A mix of health care, cyclical and consumer stocks led, while transportation, homebuilding, some retail and semiconductor groups were lagging sharply.

Shopify (SHOP) broke out past a 124.04 buy point in heavy volume. But the pattern is a risky late-stage base and it lacked a cohesive shape, making any purchase riskier. Shopify, which provides cloud-based platforms for online commerce, said today it will report Q4 results Feb. 15.

One reason the Dow transportation average plunged 1.5% was airline stocks, which were weaker again after more earnings reports came out. Some of their charts continued to deteriorate.

Alaska Air Group (ALK) gapped down to the lowest level since July 2016 but pared losses. The company reported Q4 adjusted earnings of 83 cents a share and sales of $1.96 billion, which met expectations. Alaska Air also said it’s raising its quarterly dividend by 7% to 32 cents a share.

American Airlines (AAL) beat profit estimates and gave strong earnings guidance. But higher fuel costs impacted results. The stock erased all gains from its 53.84 buy point but has not triggered sell signals.

Southwest Airlines (LUV) tumbled below its 50-day moving average in heavy trading and erased all gains from its breakout at 59.99 Nov. 30. That triggers a round-trip sell signal. Southwest beat expectations, but cited higher labor and fuel costs.

United Airlines (UAL) — which sparked a sell-off in the industry with a vow to raise capacity, match low-fare rivals and other strategic moves — fell 2% in intense volume.  The stock is forming a cup-with-handle base but it is faulty because the handle’s depth exceeds 12%.

RELATED:

Dow Leader Caterpillar Just Steamrolled Estimates Again

American Airlines Guides High, Tops Views; Southwest Beats, But Airline Stocks Keep Falling

Amazon Price Target Raised On Expectations Of Strong Results

 

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