Banking

Dow Jones Drifts Lower While S&P 500 Leads Market; Microsoft Trades In Buy Zone

The Dow Jones Industrial Average traded slightly lower in today’s stock market while the other major indexes reversed higher an hour before the close. The S&P 500 and Nasdaq composite both led on the upside.




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The small-cap Russell 2000 was in the negative, down 1.2%. Meanwhile, the S&P 500 was up 0.1%, leading the market. The Nasdaq traded up less than 0.1%, while the Dow Jones industrials lost 0.1%. Volume rose on the Nasdaq but fell on the NYSE vs. the same time on Tuesday.

The S&P sectors were mixed, with slightly more losers than winners. Energy, communication services and technology were leading, with materials the biggest laggard.

As for growth stocks, the Innovator IBD 50 ETF (FFTY) lost 0.8% as shares found resistance near the 50-day line. IBD 50 stocks leading the downside on Wednesday were MarineMax (HZO) and Plby Group (PLBY) with losses of more than 5% each.

The past several weeks have been choppy for the major indexes. IBD recently changed its market outlook to confirmed uptrend as the S&P 500 notched a follow-through signal. While the market is flashing a green light for investors to continue initiating new positions, it may be best to keep a conservative stance.

On the upside, MarketSmith Growth 250 stock Perficient (PRFT) managed to break out from a 63.05 cup-with-handle base. Shares trimmed gains to slip back below the entry in afternoon trade. The 5% buy range tops out at 66.20.

The tech services company formed the current base entirely above the 50-day line, a bullish sign.

Cruise Ship Stocks Lift

Several cruise stocks lifted after Carnival (CCL) gave a business update showing Q1 bookings were up 90% compared to the quarter ending in November. Additionally, cash balances were up. Customer deposits held steady at $2.2 billion.

Shares of Carnival rose over 2% and reached a key profit zone. The stock broke out from a cup base in mid-February and have bullishly traded above the 50-day line since.

Elsewhere, Norwegian Cruise Line (NCLH) also reached a key profit-taking zone. But shares slipped back below this area in afternoon trading. Shares were up around 2% an hour before the close. The stock is extended from a double-bottom base with an entry of 27.06.

Royal Caribbean Cruises (RCL) also rose more than 1% on Wednesday. Shares are close to forming a cup base with a possible buy point at 99.34. But investors should note, the stock has a poor IBD Composite Rating of 46.

Dow Jones Today

As for the Dow components, Microsoft (MSFT), Apple (AAPL) and JP Morgan (JPM) led the upside with gains of over 1% each. On the downside, shares of Dow (DOW) and Boeing (BA) were down 1% or more each.

Leaderboard stock Microsoft gained more than 1%. The stock regained the 50-day line at the end of last week. Microsoft stock is currently within range of a 246.23 buy point of a new flat base, according to MarketSmith chart analysis. Shares traded within a key 5% buy zone.

Microsoft is also an IBD Long-Term Leader stock.

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