Stock Market Stages Bullish Reversal To Cap Week With Big Gains

The stock market shrugged off early weakness Friday to finish with solid gains. It sought direction in the first half of the session as traders look ahead to this weekend’s G20 summit in Argentina.


President Donald Trump will meet with China’s Xi Jinping as the two leaders try to hammer out a trade agreement. The Nasdaq, Dow Jones industrial average and S&P 500 rallied about 0.8% each. Small caps took part too, with the Russell 2000 up 0.5%. Despite the bullish upside reversal, volume was running slightly lower on both the NYSE and Nasdaq vs. Thursday, according to preliminary numbers.

For the week, the Nasdaq surged 5.5%, the Dow Jones industrial average leapt 5% and the S&P 500 added 4.8%. The big gains propelled the Dow above its 40-week moving average, while the S&P 500 closed just shy of the 40-week line. The Nasdaq remains 3% below its 40-week line.

Caterpillar (CAT) scored the Dow’s biggest advance, rising 4.2% to retake its 50-day line for the first time since early October. A broad lineup of blue chips also helped boost the Dow with gains of 2% or more including Intel (INTC), Home Depot (HD) and Coca-Cola (KO).

Pfizer (PFE), up 1.5%, broke out past a 45.91 buy point of a flat base in its sixth straight advance. Volume was 6% lower than usual, showing a lack of conviction behind the breakout. The strongest breakouts often occur in turnover at least 40% higher than normal. Pfizer said Friday it reached a licensing agreement for a proposed biosimilar of AbbVie‘s (ABBV) blockbuster drug Humira. AbbVie jumped nearly 4%.

Goldman Sachs (GS), down 2%, was the Dow’s biggest loser. Shares gapped down at the open and fell to a two-year low before trimming losses. Bank of America Merrill Lynch lowered its rating to neutral from buy, citing the scandal involving a Malaysian government investment fund. BofA cut its price target on the stock to 225 from 280.

Oil Slides In Stock Market Today

Airlines, automakers and software stocks led among top sector gainers in the stock market today. But toy makers, supermarkets and oil stocks lagged. A 1.5% slide to $50.67 in West Texas intermediate crude prices weighed on oil plays amid a global supply glut. Russia also signaled it plans to keep oil output steady through the end of the year.

In the IBD 50, Canada Goose (GOOS) soared 4%, while Supernus Pharmaceuticals (SUPN) popped nearly 6%. Shares of upscale winterwear maker Canada Goose are in buy range after retaking a 65.92 entry. Biotech Supernus, which remains 22% off its high, reclaimed its 50-day line.

Software stocks continued to show recent strength in the IBD 50. ServiceNow (NOW), CyberArk Software (CYBR) and Atlassian (TEAM) advanced 3.2%, 2.4% and 2.2%, respectively.

The Innovator IBD 50 ETF (FFTY) climbed 0.2%, marking its sixth advance in seven sessions.


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Originally posted 2019-09-19 23:26:49.


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