The Dow Jones Industrial Average turned positive at midday in the stock market today as Fed Chairman Jerome Powell gave congressional testimony and impeachment inquiry hearings for President Trump got underway.
XThe Dow Jones industrials advanced 0.2%, while the S&P 500 and the Nasdaq composite rose nearly 0.1%. Small caps tracked by the Russell 2000 lagged, down 0.3%. Volume was mixed, tracking lower on the NYSE but higher on the Nasdaq vs. the same time Tuesday.
Stocks trimmed losses amid reports of a U.S.-China impasse in trade talks, Powell's testimony to Congress and the kickoff of public hearings in the ongoing Trump impeachment inquiry. Powell said current monetary policy is likely to remain in place, lowering the odds of a further rate cut this year.
Dow Inc. (DOW) lost 1.3%, while IBM (IBM) and Disney (DIS) gave up about 1% each. But Procter & Gamble (PG), Nike (NKE), Merck (MRK) and Coca-Cola (KO) rose more than 1% each.
Apple (AAPL) added 0.7% to mark a record high. Shares are now 19% extended from a 221.47 flat-base buy point. If they become extended 20% or more, that would trigger the 20%-25% profit-taking rule. RBC Capital Markets started covering Apple with a buy rating and a 295 price target, citing a potential "super upgrade cycle" from 5G iPhones.
Gold Miners Shine
Solar, security and bank stocks led the downside among IBD's 197 industry groups. The few groups up 1% or more included gold miners, enterprise software and automakers.
Exchange traded funds on the move included VanEck Vectors Gold Miners (GDX), up nearly 0.8%. The ETF has been consolidating since early September, though the lows have been stuck below the 50-day line thus far.
Over in the IBD 50, Kirkland Lake Gold (KL) was the biggest winner, with a 4% gain. The Toronto gold miner is shaping a late-stage base with a potential 51.18 buy point. Denver-based Royal Gold (RGLD) added 1.2% and Toronto-based Franco Nevada (FNV) edged 0.5% higher as more mining stocks join the IBD 50.
Airplane parts maker Heico (HEI) lifted 3% to retake its 50-day line for the first time in over two months. The stock is building a cup base with a potential entry at 148.03.
On the downside, China stocks slid. Huya (HUYA), Baozun (BZUN) and Alibaba (BABA) fell more than 2% each. Huya reversed from an early post-earnings gain to a 4% loss, breaching its 50-day line in heavy trade.
The Innovator IBD 50 ETF (FFTY) was about flat in midday trade.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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