Stocks Close Little Changed; Wal-Mart Near Possible Buy Point
The stock indexes ended with minor gains Wednesday after a session that saw the market with no clear direction.
X The Nasdaq composite was up a fraction despite strength in chip stocks. The Philadelphia semiconductor index rose 0.4%. The S&P 500 and Dow Jones industrial average added 0.1%. Indexes opened higher but limped into afternoon trading. Some buying in the final moments before the closing bell ensured gains for the indexes.
The small-cap Russell 2000 was down a fraction, more or less in line with the major indexes. The Dow transports continued to show some outperformance, up 0.2%, while the Dow utilities average climbed 0.5% as it tries to bounce back from a dreadful December.
Volume rose from Tuesday’s totals, according to preliminary data.
Solar, telecom, networking, lodging and logistics were some of the top-performing industry groups. Energy and retail, two sectors that led Tuesday, were laggards in today’s trading.
Dow component Wal-Mart (WMT) is one to watch because it is quite close to the 100.23 buy point of a flat base. It could be the next Dow member to break out.
On the IBD 50, stocks were largely quiet as well but a few made outsized gains. Daqo New Energy (DQ) led with an 8% surge to nearly a new high. The Chinese manufacturer of the material used to make solar cells is extended after nearly doubling since it broke out to new highs in October.
PayPal (PYPL) is starting to rise from support at the 50-day moving average, although price and volume still are too soft to make for a convincing new buy area.
Only a few stocks broke out Wednesday.
Array BioPharma (ARRY) topped the 12.78 buy point of a base, but volume was sharply below average. The company, which has been unprofitable, develops drugs to treat cancer.
Thinly traded Altra Industrial Motion (AIMC) cleared a flat base with a 50.10 buy point. Volume was half the normal amount for the maker of power transmission and motion control products. It has a solid 97 Composite Rating.
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