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Dow Stocks Lead As 2 Big Names Soar; Apple Rallies On This News

Though down sharply from a big early gain, the Dow Jones industrial average continued to lead Friday as Procter & Gamble and American Express jumped.




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The Dow, up 0.3%, is on track for a near 1% weekly advance. It remains above its 200-day moving average, which is better than the S&P 500 or the Nasdaq. The S&P 500 was flat, with an hour to go in Friday’s session. The Nasdaq reversed to a 0.4% loss. Both indexes are struggling to hold support at the 200-day line. The S&P 500 and Nasdaq are on track for respective weekly losses of 0.1% and 0.7%.

Small caps were getting hammered as the Russell 2000 slumped 1.3%. Volume was running higher on the NYSE and slightly lower on the Nasdaq. Today is an options expiration day, which usually leads to higher turnover.

Procter & Gamble (PG) soared 8% to its highest level since January. Shares gapped up above its 50-day line to clear an 86.38 cup-with-handle buy point in heavy volume. The consumer products giant reported better-than-expected fiscal Q1 earnings early Friday. Revenue was flat, but still ahead of forecasts.

American Express (AXP) surged 4% to retake its 50-day line in twice normal trade. The credit card provider late Thursday reported Q3 earnings that topped views. It also raised its full-year adjusted EPS forecast above analyst estimates. Earlier this week, AmEx announced an expanded partnership with PayPal (PYPL).

PayPal vaulted 8% to regain its 200-day moving average after delivering an upside earnings surprise for Q3, thanks to a boost from its Venmo digital wallet service. PayPal also boosted its profit outlook for Q4.

Going back to the Dow, other blue chip gainers included Disney (DIS), Coca-Cola (KO) and Apple (AAPL), with gains of about 2% each.

Apple rose 1.6% as it tries to hold support at its 50-day line, where it’s recently met resistance. The IBD 50 stock got a boost from Wedbush Securities, which initiated coverage of the iPhone maker with an outperform and added it to its “Best Ideas List.” Wedbush cited a strong iPhone upgrade cycle and robust services growth. It set a 12-month price target of 310. The stock is currently near 220.

Shares are still extended from a 194.30 flat-base entry cleared in July. A solid bounce off the 10-week moving average could mark a new buy opportunity, but all buys are highly risky with the market in correction.

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