X Rallying retailers led a strong-volume session that added a sixth day to the market's May rally and left the Nasdaq and the S&P 500 at new closing highs.
The Nasdaq paced the session with a 0.7% gain, aided by a 3% advance from Netflix (NFLX). The S&P 500 followed at a respectable distance, up 0.4%. The Dow Jones industrial average scaled up 0.3%, settling below its March 1 closing high of 21,115.
Preliminary data showed volume rising in the session from Wednesday's totals, also a bullish sign.
A good day overall for the market had its weak spots, particularly among 0il-related groups, which took seven of the 10 worst losses among industries. Disappointment with a nine-month commitment agreed to by the Organization of Petroleum Exporting Countries this morning in their extension of a December production cap, and by Iran's reluctance to agree to the deal, sent West Texas Intermediate sprawling nearly 5% lower, to below $49 a barrel.
Retail groups seized four of the top five gains among industries.
Best Buy (BBY) spiked 21% and drove the consumer electronics groups' advance. Strong first-quarter results soothed fears over the so-called Death of Retail, and management boosted its second-quarter revenue and earnings guidance above the consensus views. Best Buy shares were extended following a breakout from a cup-with-handle base in April.
Ulta Beauty (ULTA) teased out a 4% gain during the regular session, then shot up 4% in after-hours trade, after reporting its first-quarter results. Ulta shares ended the session just above a 289.37 buy point in a flat base.
In discount and variety retail, Dollar General (DG) and Big Lots (BIG) each rose about 3%. Dollar Tree (DLTR) added 1% after delivering weak first-quarter results and Q2 guidance below analysts targets. All three stocks have chart repair work to do.
Budget air carriers Spirit (SAVE) and Azul (AZUL) rose 4% and 5%, respectively, leading a rally among airline stocks. Brazil-based Azul, a volatile IPO, is up 8% for the week, but still 11% below the prior week's high and up 15% from its April IPO price.
UnitedHealth Group (UNH) led the Dow, rising nearly 2% after announcing its Optum unit would partner with Merck (MRK) to develop and evaluate a model linking drug prices to the outcomes of patients treated with those drugs. The gain sent UnitedHealth to a new high, but the stock remained in buy range above a 172.24 buy point in a flat base.
Among FANG stocks, Netflix gapped up 3% to bang out a new high. Piper Jaffray analyst Michael Olson on Thursday reiterated his overweight rating on Netflix stock and raised his price target to 190 from 166. Netflix is extended after a rebound from 10-week support in April.
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