The main stock indices maintained solid gains in Friday afternoon trading. The biggest winners in the Dow Jones Industrial Average included Nike stocks, Intel stocks and Cisco Systems stocks, while a large number of semiconductor stocks outperformed the Nasdaq 100. Best performers include chip equipment companies like ASML (ASML) and Applied Materials (AMAT). ASML’s stock surpassed level 600 and reached an all-time high.
X
Nike (NKE) recovered 2.5% after falling 3.4% on Thursday. Earlier today, Baird updated the stock to overcome the neutral with a price target of 150. The sellers were in Nike shares on Thursday after the company received a reaction from Chinese social media after Nike expressed concerns about conditions forced labor. Nike’s shares have been consolidating since December and still need to prove themselves before a new point of purchase is seen.
Recent institutional selling signals have dropped Nike’s Accumulation / Distribution Rating to E, the worst possible. The 0.4% increase / decrease in share volume also indicates weak demand for shares in recent weeks.
Russell 2000 led the way, up 1%, helped by another recovery in financial sector stocks. The small cap index reversed much higher on Thursday in large volume. Now, he is trying to get back above his 50-day moving average. Financial sector stocks became strong after the Federal Reserve said restrictions on share buybacks and dividend payments would end for most banks by the end of the second quarter.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32861.51 | +242.03 | +0.74 |
| S&P 500 | (0S and P5) | 3942.05 | +32.53 | +0.83 |
| Nasdaq | (0NDQC) | 13033.38 | +55.70 | +0.43 |
| Russell 2000 | (IWM) | 218.75 | +2.09 | +0.96 |
| IBD 50 | (FFTY) | 43.32 | +0.27 | +0.63 |
Last updated: 13h18 ET 03/26/2021 |
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At around 1:30 pm ET, Dow Jones industrialists rose nearly 0.7%, and the Nasdaq compound rose 0.4%. The volume on the NYSE and Nasdaq was lower compared to the same time as Thursday.
Intel (INTC) recovered 3%. He is still holding support in the 10-week move, despite Wednesday’s unpleasant reversal. Cisco Systems added 2.5% to 51.80 after a recent break from a 49.44 point-of-purchase.
Outside the Dow Jones
The S&P 500 gained 0.8%, helped by strong presentations from Nucor (NUE) and Target (TGT). Steel producer Nucor has soared to a historic level, but is too stretched to consider buying after a breach above 58.62 buying points last month.
Other steel inventories generated large gains, including US Steel (X), ArcelorMittal (MT) and Steel Dynamics (STLD). ArcelorMittal joined the Leaderboard on March 11, when it cleaned a shallow cup base with a buy point of 25.85.
The target hit a classic double-bottomed base with a buy point of 196.35. But level 200 remains a potential resistance level to watch for. Still, Target’s shares recovered well after a volatile reaction to earnings in early March.
In other stock market news, Ubiquiti (UI) emerged powerfully from a cup with handle with a purchase point of 352.72. The shares rose by more than 11% in great volume. The price hike action resulted in its addition to the Leaderboard as a half-size position on Friday.
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Ubiquity was a big winner at MarketSmith Growth 250, along with Alcoa (AA) and Freeport-McMoRan (FCX).
However, Scotts Miracle-Gro (SMG) rose above an entry of 238.91 in its own cup with handle, rising more than 2% to 241.64. The stock was shown earlier this week in the IBD 50 Stocks To Watch column. In early February, the company reported a 105% increase in sales, helped by recent investments in the cannabis industry.
In the retail sector, HR (HR) skyrocketed to a historic level after a bullish gain on Thursday, fueled by a strong earnings report.
ETF share
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) was up 1.4% and the Innovator IBD Breakout Opportunities ETF (BOUT) was up 1.8%. But both ETFs remain below their 50-day moving averages.
IShares Expanded Tech-Software Sector ETF (IGV) added 0.8% and VanEck Vectors Semiconductor ETF (SMH) increased 2.9%. SMH includes ASML stock and many other chip gear manufacturers that have held up relatively well amid the overall smoothness in the technology industry.
Follow Ken Shreve on Twitter @IBD_KShreve for further analysis and perceptions of the stock market.
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