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Dow Jones Gains Despite Losses From Big-Cap Tech Stocks

The Dow Jones Industrial Average was the sole gainer in the stock market today after shaking off hawkish remarks from Fed officials.

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The Dow Jones industrials rose 0.2%, while the S&P 500 was fractionally lower and the Nasdaq fell 0.4%. Small caps tracked by the Russell 2000 slid 0.1%. Preliminary data showed lower volume on the NYSE and higher volume on the Nasdaq.

Wall Street reversed lower midday after Philadelphia Fed President Patrick Harker said he doesn't see the need for additional stimulus. But the market trimmed losses later in the day, as traders await Fed Chief Jerome Powell's Friday speech from Jackson Hole, Wyo.

Boeing (BA), up 4% to retake its 50-day line for the first time in four weeks, lifted the Dow Jones index. The jet maker reportedly plans to produce 737 Max jets early next year at the pre-crash rate of 52. But that will depend on regulator approval to resume commercial use of the 737 Max. Also Thursday, Cowen reiterated a buy rating and 460 price target for Boeing.

Blue chip banks JPMorgan (JPM) and Goldman Sachs (GS) added a respective 1% and 0.9%. Both stocks remain well off their highs but are back above their 200-day lines. Nike (NKE) advanced 0.7% to pad its gains above its 200-day line, which it recovered Wednesday. The stock, 1% below its 50-day, may be in the early stages of shaping a flat base with a potential buy point at 89.97.

Dow Jones Stock In Buy Range

Home Depot (HD) climbed 0.3% to a new high, extending its win streak to six. Shares broke out Wednesday past a 219.40 buy point of a flat base, according to MarketSmith chart analysis. It remains in buy range, though all purchases are risky with the market uptrend under pressure. The home improvement retailer on Tuesday announced Q2 earnings that beat views.

Big-cap tech stocks were mostly lower. Cisco Systems (CSCO), Microsoft (MSFT) and Intel (INTC) each lost 0.6% or more. Apple (AAPL) closed nearly 0.1% lower after giving up an early gain. None of the losses were big, but still weighed on the tech-heavy Nasdaq.

Retailers, homebuilders and foreign banks led the upside among industry group gainers. But managed care, solar and database software stocks lagged. SPDR S&P Retail (XRT) rose nearly 2% for a second straight day, thanks to big gains from Target (TGT) and Costco Wholesale (COST).

Keysight Technologies (KEYS), up 12.5% in heavy trade, was the runaway leader in the IBD 50. Shares surged past a 94.67 buy point of a flat base and are extended from the entry. The 5% buy zone goes up to 99.40. Late Wednesday, the electronic design and testing company reported fiscal Q3 earnings that trounced views. Several analysts boosted their price targets. Keysight is featured in today's Stock of the Day column.

Among other IBD 50 stocks scoring big gains, online payment processor Qiwi (QIWI) and private mortgage insurer NMI Holdings (NMIH) rose more than 3% each.

Hot Solar Stock Dims

But SolarEdge Technologies (SEDG) gapped down and shed 7% in busy trade. The Israel-based solar company said CEO and founder Guy Sella has taken a leave of absence to address a previously disclosed health issue. Also on Thursday, UBS lowered its SolarEdge rating to neutral from buy but raised its price target to 90 from 73.

PaySign (PAYS), Baozun (BZUN) and Edwards Lifesciences (EW) extended their Tuesday losses.

The Innovator IBD 50 ETF (FFTY) edged 0.3% lower. It's run into upside resistance at the 50-day line for most of the past three weeks.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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