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Walt Disney Stock Leads Dow Jones Rally; LULU Stock Fades After Strong Start

Major stock indexes were moderately higher near midday Thursday as the Nasdaq drew closer to its 50-day moving average. Winners in the Dow Jones today included Walt Disney stock, which is forming a bullish base and is a breakout candidate.

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The Dow Jones industrials were up 0.2% and the S&P 500 rallied 0.3%. The Nasdaq composite picked up 0.5% as it drew closer to its 50-day moving average.

U.S. crude oil futures were up 3% to $52.73 a barrel on suspected tanker attacks in the Gulf of Oman.

Several software stocks outperformed in the MarketSmith Growth 250, including Anaplan (PLAN), Zscaler (ZS), ServiceNow (NOW) and Avalara (AVLR).

Dow Jones Winners

Shares of Walt Disney (DIS) were up 2% to 138.85. The stock is working on a well-formed flat base with a 142.47 entry. Shares were strong after Morgan Stanley made positive comments and raised its price target to 160 from 135.

Chevron (CVX) and Exxon Mobil (XOM) also outperformed in the Dow Jones, helped by higher oil prices.

Other Stock Market Movers

In earnings news, Lululemon Athletica (LULU) was well off highs after topping a 179.60 buy point. Shares rose 1.5% to 173.49 after the leading retail stock reported earnings late Wednesday. But at midday, the stock was below the buy point.

Elsewhere, Restoration Hardware (RH) soared 21% after reporting earnings, but the stock is still below its 200-day moving average and 29% off its high. That means it's not in a buy area.

Innovator IBD 50 ETF (FFTY) was up 0.2%, helped by a rally in software stocks. ServiceNow and Atlassian (TEAM) showed gains of around 2%. IBD 50 stock ServiceNow is also a member of Leaderboard.

Cadence Design Systems (CDNS), which moved into the IBD 50 Top 10 after Wednesday's close, turned lower after crossing the 70 level. It's working on a base with a 70.59 buy point.

Follow Ken Shreve on Twitter @IBD_KShreve for more market analysis and insight.

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