Stock Market Rally Dampened As Dow Gives Up 200-Point Gain

The stock market today closed off session highs after gapping up at the open, then paring gains. The Nasdaq composite led the key market indexes as tech stocks rebounded.


The Nasdaq composite rose 0.9%, the S&P 500 advanced 0.3% and the Dow Jones industrial average finished flat. Small caps outperformed, with the Russell 2000 rallying 1.3%. Volume was lighter on both the NYSE and Nasdaq ahead of the Thanksgiving holiday.

Microsoft (MSFT), up 1.4%, was the biggest tech gainer on the Dow. The stock closed at its 200-day moving average Tuesday. It could form the right side of a new base if shares continue to find support and move higher. At 11% off its 52-week high, Microsoft has held up better than most big-cap tech stocks.

IBM (IBM) and Cisco (CSCO) also contributed to the Dow with gains of about 1% each.

But Apple, which gapped up at the open, reversed to close the session down 0.1%. The stock has weighed heavily on the market. Goldman Sachs became the latest to cut its Apple price target amid weaker-than-expected iPhone demand. Shares have dropped more than 20% since Apple gave disappointing guidance Nov. 1. They’re now 24% below their 52-week high and 9% below the 200-day line.

Johnson & Johnson (JNJ), down 3%, hurt the Dow. Shares sank close to their 50-day line after a U.S. appeals court refused to prevent a generic version of its Zytiga prostate cancer drug from entering the market.

Software, energy and retail stocks led the upside among sectors in the stock market today. Defensive areas such as health care, utilities and food lagged.

Autodesk (ADSK) gapped up and soared 12% in fast trade to retake its 200-day line. Shares have been stuck below the 50-day line since Oct. 9. They nearly touched the 50-day during Wednesday’s gap-up move. Late Tuesday, the design software maker reported fiscal Q3 results that topped views on both the top and bottom lines. It also guided current-quarter earnings and sales above forecasts.

IBD 50’s Top Stocks Today

Over in the IBD 50, Green Dot (GDOT), Trade Desk (TTD), Veeva Systems (VEEV) and Canada Goose (GOOS) rallied with gains of 3% or more apiece.

Prepaid debit card provider Green Dot rebounded off its 200-day line and surged 5%. Trade Desk also leapt 5% as it shapes the bottom of a potential new base. Shares of the advertising platform are still below the 50-day line. Veeva, a medical software maker, followed up its Tuesday bounce off its 200-day line with a 4% jump. It appears to have found a bottom and may be forming a new base.

Canada Goose, up 3%, is trading just below a 65.92 buy point of a double-bottom base. The Canadian maker of premium outerwear is featured in the IPO Analysis column.

Only a handful of IBD 50 stocks declined, led by Sprouts Farmers Market (SFM) and McCormick & Co. (MKC), which gave up 4% and 1.5%, respectively.

The Innovator IBD 50 ETF (FFTY) rose 2% to halt a three-session slide. Shares closed Tuesday at a 15-month low.


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Originally posted 2019-09-19 23:26:02.


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