Win Streak In Doubt As S&P 500, Dow, Nasdaq Turn Lower | Stock News & Stock Market Analysis

The Dow Jones industrial average, S&P 500 index and Nasdaq composite erased much or all of their gains in mid-afternoon action, putting in doubt their five-day win streak. The Russell 2000 pared its advance.

X The Dow was fractionally higher. Beaten-up General Electric (GE) was one of the Dow’s top performers Friday on news that it will shed its overseas lighting business.

The S&P 500 rose 0.1%. The Nasdaq composite fell 0.1%. Alphabet (GOOGL), the second-largest stock in the composite, was trying to retake its 50-day line. It is not yet in a new buy area, as are some other major Nasdaq components.

The Russell 2000 climbed 0.3% trying to close above its 50-day moving average. The Nasdaq, Dow and S&P 500 had already risen back above their 50-day lines. That’s a good sign as the market tries to put its February correction in the rearview mirror.

Indeed, gains were broad, with advancers over decliners by better than 13-to-6 on the NYSE and by nearly 2-to-1 on the Nasdaq. Even the battered utilities were taking part in Friday’s advance. The Dow utilities average climbed 0.9%.

Volume was tracking higher on the NYSE and lower on the Nasdaq compared with the same time Thursday.

Steel stocks and some related industry groups topped the performance table on news that the U.S. Commerce Department recommended heavy tariffs on steel and aluminum imports. Homebuilders were up 2% as a group after January housing starts vaulted to the highest level since October 2016.

VeriSign (VRSN) broke out of a base, leaping past the 118.38 buy point of a lopsided flat base in heavy trading. The stock has been rallying since Feb. 8, when VeriSign reported quarterly results. VeriSign is best known for handling internet domain name registrations.

Wingstop (WING) climbed 1% and is edging above a 46.52 buy point of a three-weeks-tight pattern. It’s a secondary buy area for the stock, which broke out of a base Nov. 3 past a 33.64 buy point. The chicken wing restaurant chain will announce fourth-quarter results Feb. 22 after the close.

Arista Networks (ANET) plunged nearly 18% in huge volume, falling below the 50-day moving average. The stock erased nearly all of a 25%-plus gain from its 245.75 buy point in a Jan. 8 breakout. Arista gave weak guidance Thursday evening, citing revenue growth from its cloud customers slowed due to complications related to its legal dispute with rival Cisco Systems.

Arista and Wingstop are in the IBD 50.


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Originally posted 2019-09-19 23:09:40.


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