Stocks Rally Into The Close As Dow, S&P Reclaim A Key Level | Stock News & Stock Market Analysis

In a turn-about from its limp behavior earlier this week, the stock market held gains and closed at session highs Friday.

X The Nasdaq composite jumped 1.8%, the S&P 500 1.6% and the Dow Jones industrial average 1.4%. Indexes rallied into the close, sending the S&P 500 and Dow back above the 50-day moving average.

That was a favorable signal, as was the break from the past four days, when indexes had a habit of erasing early gains and closing low in the day’s price range.

Preliminary data showed volume was lower, maybe the only blemish on the session. Winners led losers by 9-2 on the NYSE and by 7-5 on the Nasdaq.

The market seemed to shake off worries about rising interest rates as the yield on the benchmark 10-year Treasury note fell 5 basis points to 2.87%. The benchmark rate has been near four-year highs. Rate-sensitive stocks that compete against bonds for yield rose. The Dow utilities average climbed 2.6% and the Vanguard REIT ETF (VNQ) climbed 1.6%.

Department stores — an industry that has rebounded to the top 30 of IBD’s 197 industry group rankings — was one of Friday’s best, rising nearly 3%. The group sparked higher after Reuters reported that the Nordstrom (JWN) family group is finalizing plans to submit an offer to take the company private. Kohl’s (KSS) leaped nearly 3% and J.C. Penney (JCP) advanced 3%.

Other retail, oil and some technology groups also led. The price of crude rose more than 1% to $63.55 a barrel. But solar, steel machinery, homebuilding and other building-related groups lagged.

Fiber optic stocks also lagged after Acacia Communications (ACIA) late Thursday gave soft guidance for the first quarter. Acacia shares, already depressed, fell 11% more.

The Innovator IBD 50 ETF (FFTY) rose 1%. The fund lagged the main indexes partly because of Wingstop (WING), which slid to its 50-day moving average after the chicken wings restaurants gave weak guidance. But the stock found support at the 50-day line and closed 5% lower, trimming about half its loss at the session’s low.

Universal Display (OLED) plunged below its 200-day moving average after the company reported better-than-expected results, but guided 2018 sales below views. Universal Display signaled a slowdown ahead in the transition to organic light-emitting diode displays.

Planet Fitness (PLNT) broke out of a base after the chain of gyms beat profit and sales expectations. Shares leaped above the 35.13 buy point.


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Originally posted 2019-09-19 23:09:55.


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