U.S. stock indexes at midday on Friday have spent most of the session under the break-even line.
X The Nasdaq trimmed 0.1% at midday, while the S&P 500 fell less than 0.2%. The blue chip Dow Jones industrial average sagged 0.4%. Small caps also edged down as the Russell 2000 lost less than 0.1%.
Volume in the stock market today ran higher on both major exchanges vs. the same time Thursday as weekly and monthly options expire.
Blue chips were mostly down despite a 2.8% gain in Dow component Nike (NKE). Three stocks in the Dow slid 1% to 2%. Coca-Cola (KO) was off 2% as it dropped under its 50-day line. Wal-Mart Stores (WMT) fell 1.5%. Intel (INTC) shaved 1%.
Among IBD's 197 industry groups, the best gains came in the apparel and retail spaces. The day's biggest losers were in the transportation sector — truck parts, trucks and logistics. Game software and education stocks also retreated.
Tesla (TSLA) unveiled its electric tractor-trailer Thursday, which appeared to throw a scare into standard, truck-related stocks. Tesla stock rose about 1.5% in heavy volume.
Tesla is trying to regain its 200-day line. If that is accomplished, the next target would be the 50-day line. Tesla has turned in annual losses in seven of the past nine years. The Street expects more losses in 2017 and 2018.
The electric car maker has received loads of free publicity in the mainstream media, but IBD generally does not favor buying stocks in companies that cannot turn a consistent profit.
Tesla ranks No. 9 in its automaker group in Stock Checkup at Investors.com. IBD advises buying either the No. 1 or the No. 2 stock in a group, which in this case is Ferrari (RACE) and Fiat Chrysler (FCAU).
Ferrari grew earnings 46% in 2016, and the Street expects 31% EPS growth this year. Fiat Chrysler cranked up earnings growth 52% in 2016 and analysts expect 49% growth in 2017.
In the IBD 50, a list of the best stocks in fundamentals and technicals, advancing issues led declining issues by a 4-to-3 ratio. National Beverage (FIZZ) led with a 2% gain, but volume was only average.
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