Stocks Pare Losses; Dow Jones Index Tests Key Level Stocks Pare Losses, And What It Means For The Dow To Clear 26,167

The stock market wavered Friday but on the whole was little changed, with the Dow Jones industrial average poking past a potentially significant level.


Indexes started higher this morning but slid on news that President Trump is pressing forward with tariffs on $200 billion worth of Chinese imports, even while the U.S. seeks to restart trade talks with China. Indexes started trimming losses after 1 p.m. ET, however.

Shortly before 3 p.m. ET, the Nasdaq composite and S&P 500 were down 0.1% and on track to notch gains for the week.

The Dow Jones industrial average also was down 0.1%. The Dow edged past the Aug. 29 high of 26,167 and touched the highest level since Feb. 1. But the index still may be facing resistance at that level. The Nasdaq and S&P 500 are a bit farther away from their late-August highs.

Volume was lower in the stock market compared with the same time Thursday. Advancers led decliners by 7-to-5 on the Nasdaq and were nearly even on the NYSE.

Small caps displayed relative strength, with the Russell 2000 adding 0.5%. Smaller stocks have tended to react favorably when international trade issues flare up.

Strength in semiconductors helped the Nasdaq and the technology sector. The Philadelphia semiconductor index climbed 1.1% and is gaining some room above its 50-day moving average.

Dow component United Technologies (UTX) broke out of a cup-with-handle base with a 136.76 buy point. Volume was unimpressive, but megacap stocks sometimes have difficulty making big volume spikes on breakouts.

The transportation sector also outperformed. The Dow transports climbed 1%, while shipping and logistics industry groups were in the top 15 of 197 industry groups Friday.

Kirby (KEX), which transports commodities over waterways, surged 7% in heavy trading after a Stifel Nicolaus analyst offered bullish comments, MarketWatch reported. Kirby shares remain in a correction but climbed back above the 200-day moving average.

Leading stocks were keeping their heads above water. The Innovator IBD 50 ETF (FFTY) was flat. The index took a hit from PGT Innovations (PGTI), which gapped down below the 50-day moving average in heavy trading. The stock sold off Wednesday after it announced a share offering, then added to its woes when it priced the offering at 23 a share, or 1 point below Thursday’s closing price of 24.

PGT Innovations makes doors and windows, including models that are resistant to hurricane winds. The stock hit a new high Monday as Hurricane Florence moved toward the Eastern U.S. It was discussed in IBD 50 Stocks To Watch this week, when it tested its 50-day line.


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Originally posted 2019-09-19 23:20:34.


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