Key stock indexes closed slightly underwater in the stock market today as Broadcom (AVGO) and other chips weighed. But the Dow Jones industrials and S&P 500 stayed above a key support line.
XThe Nasdaq composite fell 0.5%, the S&P 500 dipped 0.2% and the Dow Jones Industrial Average gave up less than 0.1%. Small caps lagged as the Russell 2000 shed 0.9%. Preliminary data showed slightly higher volume on the NYSE and slightly lower trade on the Nasdaq.
Despite the day's declines, the Dow Jones industrials and the S&P 500 held above their 50-day moving average lines. The Nasdaq has not closed above the support line since May 16. And for the week, all three indexes advanced nearly 1% each.
Dow Inc. (DOW) and Cisco (CSCO) weighed on the Dow Jones index with respective losses of 3.3% and 2.5%. Chemicals company Dow's stock snapped a nine-session win streak, while Cisco closed below its 50-day moving average. The networking giant has been shaping a base with a 57.62 potential entry.
Home Depot (HD) and Verizon (VZ) rose more than 1% each. Home Depot is getting close to a 208.39 buy point. Disney (DIS) climbed past a 142.47 buy point early in the session but pared its gain to close just below the entry. Shares surged 4% Thursday amid bullish analyst comments regarding the media titan's upcoming Disney+ streaming service.
Chips, energy and networking stocks led the industry group downside in today's stock market. But food, homebuilders and utilities advanced.
The chip design group lost more than 3%. Broadcom gapped down and fell 5.6% to test its 200-day line in more than triple normal trade. Shares are now 17% off their May 1 peak. Late Thursday, the chip designer delivered mixed fiscal Q2 results and lowered its outlook for the the rest of the year. Broadcom said it's being "conservative" amid U.S.-China trade war concerns.
Other tumbling chip stocks included Cirrus Logic (CRUS) and Silicon Laboratories (SLAB), each down 3% or more.
Falling Chips Weigh On Nasdaq, ETFs
That led to a tough day for chip ETFs. VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) gapped down and fell more than 2% each. Both funds are 14% off their respective highs and are trying to consolidate above their 200-day lines.
Over in the IBD 50, chip designer Xilinx (XLNX) gave up 2.7%. Metal plates maker DMC Global (BOOM), building products chain Fastenal (FAST) and Latin American payments firm PagSeguro Digital (PAGS) shed more than 3% apiece.
Innovative Industrial Properties (IIPR), the top IBD 50 winner, soared 7.5% to a new high. The marijuana greenhouse REIT is well extended after breaking out past a 93.34 buy point of a late-stage base. Planet Fitness (PLNT) and Comcast (CMCSA) added about 1.5% each.
Beyond Meat (BYND) leapt 7% in brisk trade. Shares rallied on reports that rival Impossible Burger is struggling to meet rising demand for its faux meat products. Beyond Meat, which debuted May 2 at a 25-per-share offering price, is now trading near 151.
The Innovator IBD 50 ETF (FFTY) edged 0.3% lower.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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