The stock market today rallied to record highs on news a China trade deal may soon be reached. The Dow Jones Industrial Average was up more than 135 points in afternoon trading.
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The Nasdaq rose nearly 0.7%, the S&P 500 advanced 0.6% and the Dow Jones industrials added 0.5%. Small caps tracked by the Russell 2000 were up 0.5%. Volume was higher on both exchanges vs. the same time Thursday.
For the week, the Dow is on track for a 0.9% gain, the S&P 500 and Nasdaq about 0.7% each.
Nike (NKE), up 2.4%, led the Dow Jones index. The athletic shoe giant said late Thursday it’s boosting its dividend by 11% to 24.5 cents a share. Nike stock remains near the top of a buy range from the 89.45 buy point of a cup with handle. The buy range tops out at 93.92. Nike on Tuesday announced it will stop selling directly to Amazon.
Pfizer (PFE) and Dow (DOW) added nearly 2% each. Notable moves among other Dow stocks rising more than 1% included Microsoft (MSFT), up 1% to a record high on a seven-session win streak. Shares are nearly extended from a 142.47 flat-base buy point.
Boeing (BA), meantime, lifted 1.1% to retake its 200-day moving average for the first time in nearly a month. The stock has hit a lot of turbulence this year amid struggles with its 737 Max jet, which may return to service in January. It’s been grounded since March.
IBD 50 Stock Gets Buffett Boost
Home furnishings retailers, chip gear makers and oil stocks led the upside among IBD’s 197 industry groups. Homebuilders, discount retailers and telecom-related issues lagged.
Energy ETFs rallied as light sweet crude prices surged 2% to $57.90 a barrel. VanEck Vectors Oil Services (OIH) gained 2.3%, while SPDR S&P Oil & Gas Exploration & Production (XOP) rose 1.7%. Both funds are still laggards, however, at more than 35% off their 52-week highs.
Over in the IBD 50, upscale home furnishings chain RH (RH) gapped up and soared 8% in heavy trade, on track for a new closing high. Shares are now extended past a 175.39 buy point of a three weeks tight they recrossed. RH surged after an SEC filing revealed it’s a new holding of Warren Buffett’s Berkshire Hathaway (BRKA). RH is also an IBD Leaderboard stock.
Also in the IBD 50, InMode (INMD) leapt another 6% to a new high, extending its 6% gain from Thursday. The stock is now up 65% from a 29.48 buy point of a narrow cup with handle. Investors who haven’t already done so could lock in some profits. It also might make sense to hold the stock for eight weeks (from the breakout day) and reassess the position after that.
Other big winners included China software play Baozun (BZUN) and Cyprus-based payments firm Qiwi (QIWI), up nearly 4% and 3%, respectively.
Discount retailer Five Below (FIVE), down 4% in brisk trade, was the biggest IBD 50 loser. Shares have been consolidating for seven months with a possible buy point at 148.31, according to MarketSmith chart analysis.
The Innovator IBD 50 ETF (FFTY) rallied 1.2%, on track to extend its win streak to seven trading sessions.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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