Stock Indexes Up; Trucks And Superregional Banks Rise | Stock News & Stock Market Analysis


U.S. stock indexes rose midday Friday, as the small-cap Russell 2000 headed toward its third weekly gain in a row.

The Nasdaq advanced 0.5% midsession, while the S&P 500 edged up 0.2%.

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The Russell 2000 added about 0.2%. The blue chip Dow Jones industrial average lagged with a 0.1% loss.

Volume in the stock market today fell modestly on both major exchanges compared with the same time Thursday.

Small cap Kraton (KRA) broke out of a cup base. The stock gapped up 6% in huge volume, clearing a 37.60 buy point. Loop Capital initiated coverage with a buy rating and a 65 price target, Dow Jones Newswires reported. Friday is shaping up as Kraton’s 12th up session in a row. The base is still early stage, according to MarketSmith’s pattern-recognition technology. An early stage breakout has a better chance of success than those from later-stage consolidations.

Kraton develops and makes renewable chemicals and specialty polymers. Kraton is rated No. 2 in its industry group in Stock Checkup at

Homebuilder William Lyon Homes (WLH), another small cap, popped 2.5% in strong volume as it retook its 50-day line. Homebuilder stocks have been rallying in recent weeks. Going into Friday’s session the building sector was rated No. 3 among 33 sectors.

Small-cap savings and loan BofI Holding (BOFI) jumped 3.5% in fast trade but erased nearly its entire gain. The stock cleared a long handle, but the handle is too low in the base to be valid.

Among IBD’s 197 industry groups, the top performers midday Friday included meat producers, trucking companies and superregional banks.

Fifth Third Bancorp (FITB), a superregional, poked above a 27.96 entry in a cup-with-handle base. Volume was below average. Fifth Third is No. 11 in its bank group in Stock Checkup.

Inside the big money center group, Wells Fargo (WFC) advanced 1.5% as it retook its flattening 200-day moving average. Wells Fargo is working on a seven-month-old double-bottom base. The stock is about 3% below a 56.70 buy point.

Wells Fargo had its share of self-inflicted problems tied to what some call a tainted work culture. In Q2, 10 A+ rated funds added shares but 19 trimmed their position. The stock pays a dividend with an annualized 2.9% yield. Wells Fargo is 16% of Berkshire Hathaway’s assets, the fund’s second-biggest position.

Trucker Heartland Express (HTLD) gapped up 7% in torrid volume. Stifel Nicolaus expects capacity shortages that should boost prices and upgraded Heartland from hold to buy.


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Originally posted 2017-10-02 09:32:03.


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