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Stock Market Mixed On Trump Comments; Disney Jumps On New Streaming Service

The stock market moved mostly higher after President Trump told the Economic Club of New York that the U.S. is close to signing the "phase one" trade deal with China. Trump also said that the U.S. "will only accept a deal if it's good for the United States and U.S. workers" — and that stock prices would be 25% higher if not for the Fed's tardiness in cutting interest rates.

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But markets eased late in the session following Trump's speech. Among Dow names, Disney stock moved up following the start of its Disney+ streaming service, while Merck stock rose after gaining approval for its Ebola vaccine.

The tech-laden Nasdaq rose 0.3%, while the Dow Jones Industrial Average was flat. The S&P was up 0.2%. The small-cap-oriented Russell 2000 index rose a slight 0.02%, basically unchanged.

Volume on both major indexes rose. NYSE turnover increased 13%, while Nasdaq volume was up about 16%.

Dow's Big Movers

On the Dow, Disney (DIS) added 1.4% after unveiling its Disney+ streaming service. Disney+ comes with a $6.99 monthly cost but includes such offerings as Disney's extensive original-film library and content from Pixar, Marvel, Star Wars, and National Geographic. Despite first-day connection troubles to Disney+ for some customers, Disney stock was the Dow's big winner Tuesday. It was also IBD's Stock of the Day. Disney stock remains in a flat base below a 147.25 buy point.

Right behind it was drug giant Merck (MRK), which gained 1% after the European Union approved its Ebola vaccine for use.

Microsoft (MSFT) tacked on 0.7% as it continued its breakout from a five-week flat base with a 142.47 buy point. Microsoft stock is now at an all-time high.

Following the overall stock market lead, a number of IBD 50 stocks made significant moves.

Light-emitting-diode maker Universal Display (OLED) jumped 2.3%. With a 99 Composite Rating from IBD and ranked No. 1 in its industry group, the stock is now forming the right side of a 10-week cup with a 230.42 buy point.

Private-mortgage insurer NMI Holdings (NMIH) rose 3.6%. NMI stock, which has a 98 Composite Rating, broke out of a 21-week consolidation pattern above a 31.44 buy point last week after reporting a better-than-expected earnings gain of 54% in the third quarter. With today's action, the stock is now extended above the 5% buy zone

Specialty boot and work clothing retailer Boot Barn (BOOT) added to its recent strong gains, rising 2.7%. Boot Barn stock broke out of a cup-with-handle base in late October and is now extended above the buy zone. Boot Barn's 99 Composite Rating marks it as one of the top companies on the market, and it has two quarters of accelerating earnings, a key sign for winning growth stocks.

Stock Market: Software's Comeback

Threat-management systems creator Fortinet (FTNT) added 4.2%. Fortinet, with a 96 Composite Rating, is extended above a 92.89 buy point, also above a cup-with-handle base.

Other software names also rose, continuing a rebound for the sector. Cloud-based sales and marketing software developer Veeva Systems (VEEV) added 1.4%, finding support near the bottom of a consolidation pattern at its 200-day moving average but still struggling to recapture its 10-week line. Meanwhile, Salesforce.com (CRM) continued its climb toward a 167.66 buy point in a 29-week consolidation pattern. It rose 0.7%.

Among exchange traded funds, Innovator IBD 50 (FFTY) edged up 0.2% in Tuesday trade.

While Trump suggested a China trade deal was near, he has until Wednesday to decide whether to impose tariffs of up to 25% on European Union auto imports. Analysts said Trump may delay imposition of the tariffs, giving the two sides time to fashion a deal.

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