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Market Shakes Off Boeing Turbulence; These 2 Dow Stocks Are In Buy Range

The stock market closed off highs but scored solid gains Wednesday, after coming back from a sharp pullback related to Dow Jones stock Boeing (BA).

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The Nasdaq and S&P 500 rose 0.7% each, while the Dow Jones Industrial Average advanced 0.6%. Small caps lagged slightly with the Russell 2000 up 0.5%. Volume was higher on both the NYSE and Nasdaq vs. Tuesday, according to preliminary numbers.

The major indexes pulled back in afternoon trading around the same time President Donald Trump ordered the FAA to ground all Boeing 737 Max jets. The move came after Boeing recommended suspension of the jets "out of an abundance of caution" and to reassure the public of the model's safety.

Boeing, up as much as 1.6% early, dived to a 3.2% loss. But it reversed higher by the close for a 0.6% gain.

Health care names boosted the Dow Jones index. UnitedHealth Group (UNH) rose 2.6% and Walgreens Boots Alliance (WBA) added 1.5%.

Health Care Select Sector SPDR Fund (XLV), which counts UnitedHealth among its top five holdings, climbed 1.1%. The ETF has advanced every day this week since finding support at its 50-day moving average. It's now 3% above the line.

Dow Jones Techs Score Gains

Big-cap techs also made a good showing on the Dow. Intel (INTC) rose 1.5%, while Cisco (CSCO) and Microsoft (MSFT) were up about 0.8% each. Apple (AAPL) advanced 0.4%. Intel climbed past a just-completed handle with a 54.20 entry. It's still in buy range from there, though volume was about 23% lower than usual.

Cisco marked a multiyear high and is extended from a 49.24 buy point of a double-bottom base. Microsoft remains in buy range from a 113.35 handle entry. Apple stretched its win streak to four days and is up 5% for the week. If it closes higher this week, that would mark its ninth weekly gain of the past 10 weeks. At 22% below its early October high, the stock is still far from any potential buy point.

Health care, gaming software and select retailers were among the day's biggest sector gainers. In the gaming software space, Take Two Interactive Software (TTWO) soared 7% in heavy volume, while China's NetEase (NTES) vaulted 3.5% to recapture its 50-day line. Activision Blizzard (ATVI) and Electronic Arts (EA) added 2.5% and 1.6%, respectively.

Arista Networks (ANET) led the IBD 50 with a 3.7% jump, clearing a 289.97 buy point of a cup with handle base. Volume was about 23% higher than normal but shy of the 40% minimum increase you'd like to see at a breakout. Regardless, shares remain in the 5% chase zone from the entry.

Other IBD 50 stocks gaining 2% or more included PagSeguro Digital (PAGS), PayPal Holdings (PYPL) and Veeva Systems (VEEV). PayPal is extended from a 92.45 handle buy point.

The Innovator IBD 50 ETF (FFTY) climbed 0.3% in the stock market today for a third straight advance.

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