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Dow Jones Extends Win Streak As These Key Stocks Rally; Time To Buy Apple?

The Dow Jones Industrial Average extended its win streak in the stock market today, thanks to a relief rally of sorts, as China waived tariffs on 16 U.S. products.

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The Nasdaq surged 1.1%. The Dow Jones industrials gained 0.8% and the S&P 500 0.7%. Small caps tracked by the Russell 2000, up 2.1%, outpaced their big-cap peers by a wide margin. Preliminary data, though, showed lower volume on the NYSE and Nasdaq vs. Tuesday.

The Dow Jones index stretched its winning streak for a sixth straight session. It's now just 1% shy of a record high.

Boeing (BA), up 3.1%, was among leading Dow Jones winners. The stock is starting the right side of a six-month consolidation with a potential 446.11 buy point. But it has some work ahead, at about 14% below the left-side high. On Wednesday, CEO Dennis Muilenberg said he still expects Boeing's 737 MAX jet, which has been grounded for months since a pair of crashes, to resume service in Q4.

Apple (AAPL) was the biggest Dow gainer. Shares rose 3.2%, climbing past a 221.47 flat-base buy point in twice normal trade, according to MarketSmith chart analysis. The stock remains in buy range, which goes up to 232.54.

Apple, featured in today's IBD Stock Of The Day column, is back at a $1 trillion valuation. It unveiled its iPhone 11 lineup, a new iPad tablet and offered updates on upcoming services.

Morgan Stanley reiterated an overweight rating and called Apple a "top pick heading into 2020," citing a potential return to growth. Apple stock got added to IBD Leaderboard Tuesday morning.

Big-Cap Techs Boost Dow Jones

Intel (INTC) and Cisco (CSCO) added nearly 2% each, further padding gains to the blue chip Dow. Intel, which extended its win streak to six, is back above its 200-day moving average and is 11% off its high.

Likewise, chip stock ETFs had a good day. VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) rose more than 1% each, for their sixth straight advance. SMH is close to a 123.60 buy point, while SOXX is near a 220.92 proper entry.

Chips, automakers and telecom stocks led the industry group upside in the broad stock market rally. Oil and gas royalty trusts, gaming software and consumer electronics retailers were among the few losers.

Over in the IBD 50, Funko (FNKO) popped 8%, climbing past a 25.58 flat-base buy point in heavy trade. Shares rose nearly 4% Tuesday. The pop culture products maker earns a 98 Composite Rating, the best in the seven-stock toys and games group.

Among other IBD 50 winners, recent IPO InMode (INMD) rallied 6.4%, SolarEdge Technologies (SEDG) rose 5.7% and Tempur Sealy International (TPX) gained 5.1% to retake its 50-day line. Tempur Sealy is shaping a flat base with an 81.95 entry.

On the downside, defense stock Heico (HEI) lost 3% in more than double its average trade to stretch its losing streak to four. Paycom Software (PAYC) and Veeva Systems (VEEV) gave up 2% and 1.4%, respectively.

The Innovator IBD 50 ETF (FFTY) climbed 0.6%, recouping a sliver of Tuesday's 3% drop.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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