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Stocks End Down, But Up For 2016; Apple, Microsoft Drag On Dow, Nasdaq

The stock market fell Friday but ended the year with decent gains. Will the Dow hit 20,000 in the new year? (Richard B. Levine/Newscom)

The stock market wrapped up 2016 with a whimper Friday, as the key indexes posted moderate losses. But for the year, they ended with decent gains after a post-election rally.

The Nasdaq fell 0.9%, the S&P 500 0.5% and the Dow Jones industrial average 0.3%. Volume was slightly higher on both the NYSE and Nasdaq, according to preliminary data, likely due to "window dressing" by fund managers as they adjust their portfolios.

The Dow, up 13% for the year, closed well below 19,800 after recently flirting with the 20,000 level. The S&P 500 notched a 9.5% gain, while the Nasdaq advanced 7.5%.

Gold miners, telecom and chip stocks led the downside in the stock market today. Banks, property REITs and insurance stocks were among the few industry groups that posted small gains.

Tech stocks, among the biggest losers on the Dow, took a hit. Microsoft (MSFT), Intel (INTC), Apple (AAPL) and Cisco Systems (CSCO) all shed about 1% each.

Three of the four big-cap techs outperformed the Nasdaq for the year, but fell short of the Dow. Microsoft rose 12%, Cisco 11%, Apple 10% and Intel 5%.

Microsoft remains just out of the 5% buy zone from a 58.80 flat-base buy point. Cisco is trying to hold support at its 50-day moving average as it works on a flat base; Intel has shaped a cup with handle with a 37.44 buy entry.

Apple may form a handle as it continues to build the right side of a cup base. The buy point for now stands at 118.79. Though shares are still 14% below their May 2015 peak, they made an impressive run in the back half of 2016, rising 33% from a May 2016 low to an early October high.

Apple dipped 0.8% in below-average volume Friday amid a Nikkei Asia Review report it's cutting back on iPhone production due to weak demand. In other news, Apple reportedly plans to start making iPhones for the Indian market at a Bangalore factory in April.

In the IBD 50, graphics chip designer Nvidia (NVDA) suffered the biggest loss, down more than 4% in heavy trade. Friday's action serves up the second big-volume drop in three sessions, a bearish sign. The stock plunged 7% Wednesday after reversing from a new intraday high. While it's due for a slowdown after a torrid 227% YTD gain, the heavy-volume reversals are alarming.

SVB Financial (SIVB) was the biggest IBD 50 gainer for the day, picking up nearly 0.8% in tepid trade. The holding company for Silicon Valley Bank is far extended from a 112.93 buy point first cleared in October.

Other financials with small gains included Citizens Financial Group (CFG), Goldman Sachs (GS) and East West Bancorp (EWBC).

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