Stock Market At Session Highs As Walmart Earnings Fuel Dow Jones

Key market indexes were trading at session highs Tuesday, powered by a pair of Dow Jones stocks as well as big-cap tech names.


The Nasdaq and S&P 500 rose 0.4% each, while the Dow Jones Industrial Average added 0.3%. Small caps outperformed, with the Russell 2000 up 0.5%. Volume, though, was tracking lighter on the NYSE and Nasdaq vs. the same time Friday.

Walmart (WMT) gapped up and leapt more than 3% to lead the Dow Jones industrials. Shares remain in buy range from a 99.45 entry of a cup with handle they cleared on Friday, albeit in light trade. The retail giant reported better-than-expected fiscal Q4 earnings early Tuesday. It also saw strong same-store and e-commerce sales.

Among other blue chip winners, Walgreens Boots Alliance (WBA) and Procter & Gamble (PG) rose more than 1% each. Walgreens padded gains above its 50-day moving average, which it retook Friday. Procter & Gamble hit a new high.

The Nasdaq got a boost from big-cap techs, including the FANG stocks. Dow components Apple (AAPL), Microsoft (MSFT), IBM (IBM), Intel (INTC) and Cisco (CSCO) edged higher. Amazon (AMZN) and Netflix (NFLX) rose more than 1% each, while Facebook (FB) and Alphabet (GOOGL) climbed less than 1%.

Apple Lifts Dow Jones

Apple, nearly flat for the past seven sessions, climbed 0.5%. The stock has advanced 20% from its early January low but remains 26% below its early October peak. Berkshire Hathaway‘s (BRKB) latest 13-F filing showed Warren Buffett trimmed his Apple stake by nearly 3 million shares.

The iPhone maker has fallen behind Amazon and Alphabet’s Google in the smart home market. But D.A. Davidson said it’s “encouraged” by Apple’s recent hiring of a former Microsoft executive to lead its smart-home business. The analyst reiterated a buy rating on Apple with a 245 price target.

Gold miners, energy and airfreight transporters led the upside among sector gainers in the stock market today. Medical, gaming software and homebuilder stocks lagged.

Over in the IBD 50, Tallgrass Energy (TGE), Arista Networks (ANET) and Kirkland Lake Gold (KL) rose more than 2% each. Arista climbed past a 269.59 cup-base entry and extended its gains from Friday, when shares surged nearly 10% to gap above the 200-day line. The big move was fueled by Arista’s Q4 earnings and sales beat.

But Lululemon Athletica (LULU) flagged 3% in weak volume, on track to extend its losing streak for a fourth session. The yogawear retailer is slightly below a 152.28 cup-with-handle buy point it cleared last week.

The Innovator IBD 50 ETF (FFTY) edged 0.1% higher.


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Originally posted 2019-09-19 23:34:15.


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