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Stock Indexes Barely Up, But Goldman Hits Another New High

The stock of Goldman Sachs has been a straight-up story since early November. (EPA/Newscom)

U.S. stocks logged minor gains Tuesday afternoon, as the indexes continued to trade just under recent all-time highs.

The Nasdaq and the S&P 500 each inched up 0.1%, while the Dow Jones industrial average added 0.1%. The small cap Russell 2000 rose 0.7%. Volume in the stock market today was down on the NYSE but up on the Nasdaq vs. the same time Monday.

Blue chips were about evenly split between winners and losers.

The biggest loser in the Dow was Nike (NKE). The stock slid 2.7% in above-average volume after analysts at Cowen downgraded the stock to market perform from outperform. The analysts say discounting and competitive pressures are hurting the company.

Meanwhile, Goldman Sachs (GS) continues to be a star in the Dow. After gapping up 2% Oct. 18 on quarterly results, the stock has advanced an additional 33%. On Tuesday, the stock poked to a new high in heavy volume, gaining 0.9%.

The Dow Jones industrial average outperformed the Nasdaq and the S&P 500 in November. The Dow gained 5%, while the Nasdaq and S&P 500 rose 3% each. On Monday, though, the Dow ran into technical trouble. The Dow showed stalling action, a form of distribution that occurs on up days.

Small caps have been the leaders of the current rally. The Russell 2000 advanced 11% in November.

Among IBD's 197 industry groups, consumer-product stocks were among Tuesday's leaders. Spectrum Brands (SPB) rose 3% in twice its average volume. The company's brands include Rayovac, Black & Decker, Stanley and STP.

The day's laggards included restaurants. Chipotle Mexican Grill (CMG) gapped down 7% after co-CEO Steve Ells criticized the company's level of customer service and said Chipotle's rebound has been slower than expected. The stock has been struggling for more than a year and has yet to form a convincing bottom. The stock is more than 50% off its August 2015 high.

The market's rebound since the presidential election has raised questions about how long and how far the Trump rally can go. If optimism among Americans is any indicator, then the run might have further to go. The IBD/TIPP Economic Optimism Index jumped to a 10-year high in December. The index has a solid track record of foreshadowing the confidence indicators of the University of Michigan survey and the Conference Board.

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