The Dow struggled straight through the closing bell Wednesday, marking a mixed finish for the market as gains narrowed in late trade. Still, the three major indexes held or gained ground above their 50-day moving averages.
XThe Dow Jones industrial average ended down 0.2%. A 2.8% run up by Home Depot (HD) and an afternoon rally among blue chip energy names helped the Dow hold some ground vs. IBM's (IBM) 7.5% slide.
The S&P 500 eased to an advance of less than 0.1%. Textron (TXT), CSX (CSX) and Intuitive Surgical (ISRG) powered the index through much of the session, holding their ground after early breakouts. Rallying airline and energy stocks shared several of the index's top gains.
The Nasdaq closed up 0.2%, but off its session highs. Intuitive Surgical, CSX and American Airlines (AAL) led the Nasdaq 100. Quarterly results sent chip equipment maker Lam Research (LRCX) to the low end of the Nasdaq 100, and triggered broader losses within the chip sector.
Apple (AAPL) shed its afternoon gains and closed down 0.2%. And three of four FANG-stock tech leaders gave up ground. The hold out, Amazon.com (AMZN), jumped 1.6%. The stock was buoyed by an agreement with Best Buy (BBY) to sell smart television sets powered by Amazon's Fire TV operating system. Best Buy shares ended 3.6% higher.
Airlines Fly As Oil, Energy Stocks Rally
Transportation and energy issues were driving factors in afternoon trade.
United Continental Holdings (UAL) reported a mixed bag of first-quarter results. But an outlook for flat-to-lower costs and expanded routes helped hoist shares 4.8%. The stock is fighting to build the right side of a 10-month consolidation.
American Air soared 4.4%. Delta Air Lines (DAL) jumped 1.2%. Southwest Airlines (LUV) jetted 2.9% higher, despite an emergency landing by one of its aircraft Tuesday after an engine disintegrated at cruising altitude. One passenger was killed in the incident.
Crude oil prices spiked more than 3%, sending U.S. bench mark crude well above $68 per barrel for the first time since December 2014. On the Dow, Chevron (CVX) and Exxon-Mobil (XOM) ended up 1.9% and 1.1%, respectively. Devon Energy (DVN) snatched a top advance among S&P 500 stocks with an 7.2% gain.
Among growth stocks, WildHorse Resource Development (WRD) jumped 3% in an eighth straight advance. IBD 50 stock Venom Energy (VNOM) popped 1.2%, also an eighth up session in a row. Both stocks are extended above cup bases.
3 Gap-Up Breakouts Hold, As eBay Backtracks
CSX, Intuitive Surgical and Textron all scored gap-up breakouts in the stock market today.
CSX was up 7.9% as it broke out past a 60.14 buy point in a four-month-long base. The breakout, fueled by healthy first-quarter results, remains in play: The buy range extends through 63.15. The base is a second-stage pattern, which is good. The stock's relative strength line has been trending higher since February and made a new high from the time the stock was basing.
Intuitive Surgical swelled to an 8.2% gain. That move, also driven by positive earnings, left the stock still in a buy range above its entry at 452.10. Intuitive's relative strength line broke cleanly to new highs along with the breakout, a good sign.
Textron closed up 6.8% and held its ground. The maker of Cessna aircraft reported a strong earnings beat and the sale of its tool unit. It remained in buy range above a 62.29 buy point. The stock has formed multiple second-stage bases, climbing less than 20% between each consolidation. Like Intuitive, Textron's RS line punched through to new highs along with its gap-up at the open today. That is a reinforcing signal for the stock's move to new highs.
EBay (EBAY) bolted out of the stating gate Wednesday with a 5.6% advance. But the stock met resistance at its 50-day moving average, and pared its gain to 2.8% at the close. Morgan Stanley upgraded the stock and hoisted its price target to 58 from 36, citing a new payment program under development. EBay is attempting to build the right side of a double-bottom base. The buy point is 44.40.
YOU MIGHT BE INTERESTED IN:
The Big Picture: Nasdaq Takes Command As This Fuels Stocks
After Hours: 2 Tech Stocks Dive, 2 Transportation Names Soar
A Stock Breakout Specialty Tool: The Relative Strength Line
