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Dow Jones Today Jumps Ahead Of White House China Trade Meeting; Starbucks Rumbles, These 4 Blue Chips In Buy Range

The stock market kicked into an early rally Thursday, led by the Dow Jones today, as a tweet from President Donald Trump announced a U.S.-China trade deal was "VERY close." China sensitive Wynn Resorts (WYNN) led the Nasdaq and S&P 500. Starbucks stock rumbled higher on an analyst upgrade. Earnings news sent retail leader Lululemon Athletica (LULU) lower.

The Nasdaq, the Dow Jones Industrial Average and the S&P 500 all rallied 1% higher in the first half hour of trade. The gains were enough to send all three indexes to new highs.

Cisco Systems (CSCO) powered up 2.5% to lead the Dow Jones industrials. Apple (AAPL) reversed its early loss and rose 0.6%, despite a Credit Suisse report that iPhone shipments declined "meaningfully" in November.

Wynn Resorts soared more than 7%, Western Digital (WDC) leapt 5.3% — leading both the Nasdaq 100 and the S&P 500. Starbucks (SBUX) jumped 2.6% on the early stock market today, as JPMorgan raised the stock to overweight from neutral.

General Electric (GE) bolted 4.2% higher on an upgrade from UBS.

Chipmaker Broadcom (AVGO) blasted 3% higher, past a 323.30 buy point in a saucer base. IBD Leaderboard stock Advanced Micro Devices (AMD) swung 3.8% higher, surging toward a three-weeks tight buy point.

Early earnings news was mixed, as network gear maker Ciena (CIEN) soared 10%, and IBD 50 stock Lululemon Athletica tumbled 5.9% lower following earnings reports.

Gear up for Thursday's market action by reading IBD's Investing Action Plan.

Apple Stock: China iPhone Revenue Slips

Apple stock reversed and gained 0.4%, after dropping 1% at the open. A Credit Suisse note said China iPhone shipments declined more than 35% in November. The report estimated Apple revenue from iPhone sales in China fell 17.5% over the past three months, due to declining popularity, and demand for lower-priced models.

Apple, an IBD Leaderboard stock, remains in a profit-taking zone after an early December rebound from 10-week support.

AMD Stock Within 2% Of Buy Point

Chip developer AMD rocketed 4% higher, as the company introduced its new Radeon graphics card. The gain put the stock within 2% of a 41.89 buy point in a three weeks tight pattern.

China Trade Meeting; Jobless Claims

A tweet from President Trump five minutes after the market open said "Getting VERY close to a BIG DEAL with China. They want it, and so do we!"

Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, and White House advisers Larry Kudlow and Peter Navarro were all set to meet today to discuss China trade issues with President Trump, according to CNBC. Trump could potentially make a final decision on whether to implement or delay a new round of China trade tariffs, which face a Dec. 15 deadline.

First time U.S. unemployment claims jumped to 252,000 in the week ended Dec. 7, the Labor Department reported. That was a 24% surge above prior-week levels, and far above forecasts for 213,000 new applications.

Prices paid by producers were unchanged in November, leaving the Labor Department's Producer Price Index flat. That was down from a 0.4% advance in October and below economist views for a 0.2% increase.

Retail sales and import/export price numbers for November are expected on Friday.

Europe's Markets Mixed: U.K. Vote, ECB Meeting

London's FTSE 100 rallied 0.5% as voters in the United Kingdom headed to the polls, determining whether to give Prime Minister Boris Johnson the political support he needs to ram through a Brexit agreement with the European Union.

Elsewhere in Europe, Frankfurt's DAX and the CAC-40 in Paris each fell more than 0.1% after the European Central Bank held its target interest rates unchanged. It was the ECB's first policy meeting under the direction of former International Monetary Fund leader Christine Lagarde.

Dow Jones Today: 4 Blue Chips In Buy Range

The Dow Jones today is looking at a possible second straight down week, backing off 0.4% for the week through Wednesday. The Dow has raised no real red flags during its pause, just a steady-as-she-goes holding pattern ahead of Sunday's China trade war deadline.

About a third of the Dow Jones stocks have gained ground so far this week. Cisco Systems leads with a 1% bounce, but remains deep in a five-month correction. Caterpillar (CAT) popped 0.9%, rebounding from support in a six-day rally, and is holding in a buy range above a 140.72 buy point.

Other blue chip advancers have held to gains of less than 0.5% so far this week. That could quickly change upon meaningful news regarding a China trade deal. Also on the Dow Jones today, Nike (NKE), UnitedHealth Group (UNH) and Johnson & Johnson (JNJ) remain in buy ranges.


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Nike stock is working on the sixth week of its advance, up 9% in that time. The uber alles athletic brand is in buy range just above a 95.22 early buy point, and more narrowly above a traditional flat base buy point at 96.97.

UnitedHealth is hammering away at a seventh-straight weekly gain, rising in 10 of 11 recent weeks for a 32% rally. It is in buy range above a 272.59 entry.

Johnson & Johnson has been consolidating for 23 months, and looping through a number of bases in the process. It is within a buy range above a 138.73 handle buy point. But prospects for an advance powerful enough to break through long-term resistance around 145 appear slim.

For more detailed analysis of the current stock market and its status, study the Big Picture.

World's Largest Company: Saudi Aramco

Shares of Saudi Arabia's Saudi Aramco jumped 10% intraday on the country's Tadawul stock exchange, pushing the IPO's market capitalization above the $2 trillion mark. Aramco was already the world's most valuable company, following its Wednesday initial offering, well above the $1.2 trillion valuation of next-in-line Dow Jones stock Apple. Only a 1.5% share of the state-run oil giant trades on the market.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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