The Dow Jones industrial average posted solid gains in the stock market today, though several tech heavyweights dragged on the Nasdaq composite.
XThe Dow Jones industrials rose 0.8% and the S&P 500 gained 0.6%, but the Nasdaq fell 0.4%. Small caps also lagged as the Russell 2000 gave up 0.1%. Volume was lower on the NYSE and Nasdaq vs. Friday, according to preliminary data.
IBM (IBM) bucked the tech sell-off to lead the Dow with a 3.8% pop in above-average volume. The stock is trying to end a one-month slide, during which it tumbled as much as 26%. Shares remain 29% off their 52-week high and 15% below their 50-day moving average.
IBM CEO Ginni Rometty bought about $3 million in Big Blue shares, Bloomberg reported Monday. Last week, IBM said it's buying open-source software provider Red Hat (RHT) for $34 billion.
Chevron (CVX) rose 3.7% to retake its 50-day line in a second straight advance. Intel (INTC) and McDonald's (MCD) added about 2% each.
Stock Market Today: Apple Drops
But Apple (AAPL), down nearly 3%, was the biggest loser on the Dow. That extended Friday's near 7% drop, which followed the iPhone maker's quarterly results. That day, Bank of America downgraded Apple to hold. Rosenblatt Securities also lowered its Apple rating to neutral from buy. Japan's Nikkei on Monday reported Apple has instructed contract manufacturers Foxconn and Pegatron to suspend plans for additional iPhone XR production lines.
The stock is close to giving up its gains from a 194.30 breakout in August. Shares had advanced as much as 20% from the entry to an Oct. 3 high.
Energy, drugmakers and steel stocks were among the biggest sector gainers in the stock market today. Tech groups including software, chip gear makers and internet content underperformed.
In the IBD 50, health care REITs rallied: Medical Properties Trust (MPW), Sabra Healthcare REIT (SBRA) and Caretrust REIT (CTRE) gained 5%, 3% and 2%, respectively. Other advancers included Netflix (NFLX), up 2%, and Intel.
The downside saw Health Insurance Innovations (HIIQ) plunge 13%, Supernus Pharmaceuticals (SUPN) sink 8% and PGT Innovations (PGTI) fall 6%. Among techs getting hit were RealPage (RP) (down 5%), Brooks Automation (BRKS) (down 3%) and Apple.
The Innovator IBD 50 ETF (FFTY) gave up 1%. It's 19% off its Oct. 1 peak.
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