After shaking off a disappointing start, the stock market climbed into positive territory with an hour left to go in the regular trading session. The Dow led.
The Nasdaq rose 0.3%, the Dow Jones industrial average gained 0.4% and S&P 500 added 0.3%. Small caps lagged slightly behind with the Russell 2000 up 0.1%. Volume was lighter on the NYSE and Nasdaq vs. the same time Wednesday.
The major indexes are trying to extend their win streak to four days. The Nasdaq followed through Wednesday with a 2.9% jump in heavier volume, as Federal Reserve Chairman Jerome Powell’s dovish comments fueled a big market rally. Today’s action has been tepid by comparison.
Boeing (BA), Merck (MRK) and Pfizer (PFE) led the Dow with respective gains of 2.7%, 1.4% and 1.3%. Jet maker Boeing lifted for a fourth straight advance. Cowen added Boeing to its “Best Ideas for 2019” stock list, citing healthy cash flow among the reasons. Shares are building a double-bottom base with a 373.80 buy point.
Merck is at a new high, while Pfizer is shaping a flat base with a potential 45.91 entry. Most health care stocks have fared well as the market corrected. The drug giants’ ethical drugs industry group is ranked No. 26 out of the 197 industry groups tracked by IBD.
Among big-cap techs, Intel (INTC) underperformed with a 1.6% loss. Apple (AAPL) slid 0.7% and Microsoft (MSFT) gave up 0.2%. But Cisco Systems (CSCO) rose 0.8%. Microsoft is working on the right side of a double-bottom base with a 112.34 entry. It held up well during the recent correction and is 4% off its high.
Oil Price Surges
Energy, electronics and medical stocks led the upside among sectors. Oil stocks advanced as West Texas intermediate crude prices surged 2.4% to $51.51 a barrel. Foreign banks, department stores and homebuilders lagged.
Over on the IBD 50, Atlassian (TEAM) led with a 6% pop to rise further above its 50-day moving average. The Australia-based enterprise software maker soared 8% Wednesday to retake the 50-day line.
Twitter (TWTR), down 5%, was the biggest IBD 50 loser. Shares are testing support at their 50-day line.
The Innovator IBD 50 ETF (FFTY) advanced 1.4% as it attempted a fifth gain in the past six sessions.
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