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Apple, Boeing, Caterpillar Lead Dow Higher; What Are Expectations For iPhone 8?

X A late rally lifted the major market indexes to a positive finish Tuesday as the Dow Jones industrial average led with help from Caterpillar (CAT), Boeing (BA) and Apple (AAPL).

The Dow Jones industrial average rose 0.2%, while the S&P 500 and Nasdaq composite each closed with a nearly 0.1% gain. Small caps lagged but the Russell 2000 gave up just 0.1%. Volume was lighter on the NYSE and Nasdaq vs. Monday, according to preliminary numbers.

Steel, internet retail and energy stocks were among the biggest gainers in the stock market today, as West Texas intermediate crude prices surged 1.8% to above $51 a barrel. Department stores and other apparel-related plays underperformed.

Caterpillar gained 2%, nearly retaking its 50-day line as the stock builds a flat base with a 99.56 entry. Goldman Sachs added the heavy equipment maker to its conviction buy list and boosted its price target.

Among other blue chips, Boeing and United Technologies (UTX) added 1% each. Nike (NKE), down 1%, was the biggest decliner on the Dow.

Apple rose nearly 1% to a new record high of 144.89 on bullish expectations for the upcoming iPhone 8 launch. Pacific Crest boosted its 12-month price target to 150 from 140, citing expectations for Apple to build at least 100 million high-end phones in the second half.

 Shares are far extended from a 118.12 handle buy point cleared in January and are less than 3% above a 141.12 four-weeks-tight entry.

Amazon.com (AMZN) hit a new high as it added 2% in healthy trade in its seventh straight advance. Shares are well past an 843.94 handle buy point and more than 5% above an 860.96 entry of a four-weeks-tight pattern. BMO Capital Markets named Amazon a new "top pick" and raised its price target to 1,200 from 900, citing "significant momentum" in the internet giant's ad business.

On the IBD 50, Cirrus Logic (CRUS) gapped up and rose 5%, nearing a 64.26 buy point of a cup without handle. Volume was slightly higher than usual. Pacific Crest raised its rating on the chip designer to overweight from sector weight and set a 75 price target. Cirrus is one of the chip stocks it expects to benefit from a strong iPhone 8 cycle.

But graphics chip designer Nvidia (NVDA) slumped 7%, gapping down below its 50-day moving average in rapid trade. Shares are working on a two-month consolidation. Pacific Crest lowered its rating on the IBD 50 stock to underweight from sector weight, citing concerns about market saturation for data-center chips.

In economic news, the IBD/TIPP Economic Optimism Index fell to 51.7 in April from 55.3 in March, nearly back to its early November level before President Trump's surprise win.

Economic data slated for Wednesday include the ADP employment report and the ISM services index, both for March, as well as weekly mortgage applications and the Energy Information Administration's petroleum status report.

The minutes from the Fed's March 14-15 monetary policy meeting will be released at 2 p.m. ET.

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